Predictions about the future of financial systems (Part 1)

A roadmap based on technical understanding of Bitcoin, Ethereum and the lightning network

Amazing predictions that were so accurate!
  • Explorer 1 became the United States’ first artificial satellite on 31 January 1958.
  • System/360 introduced by IBM on April 7, 1964. It was its first computer to use interchangeable software and peripheral equipment. It has 8–64 Kb memory, run only 34000 instructions/second, weight 770 kg, and cost $133,000+.
IBM System/360 mainframe. Compare it to the computer you’re using to read this post!
  • In a currency that can be created at will (potentially unlimited supply)
  • By central governments with changing policies, no transparency and potentially lot of corruptions. Just try to guess the amount of any classical currency in circulation. (I bet you can never tell exactly how much dollars or euros are in circulation).
  • Very slow, often limited, expensive international transactions with lot of hidden fees.
Bank hidden fees comic (Licensed usage of the comic — paid using Bitcoin)
  • Hard capped supply (limited by the protocol)
  • Very transparent blockchain, and issuing policy (new bitcoins at each block)
  • Fast, unlimited international transactions. There is no distinction between sending a bitcoin to someone in your country or to someone in a different continent (just think of e-mail vs post mail).
[1995] What is Internet? when people were still making fun of it! (Found and shared via the internet today)
  • Technical limitations to be solved: Bitcoin can only do 4 transactions/second (compared to Visa or Mastercard 65000 tx/s). That’s due its highly decentralized and trustless nature. But if we have already a faster Visa and Mastercard, why do we need bitcoin? (Again, check the video above). A faster radio is not better than a slower internet. Bitcoin offers an unprecedented level of transparency and trust. Visa can block billions of credit cards in ONE click, and doesn’t operate worldwide.
  • Infrastructure: it takes time to setup the crypto infrastructure needed worldwide, in terms of exchanges, regulations, policies. It took around 30 years for the internet to go from dial-up modem speed (56Kb/s) to fiber optics (76 Mb/s)
  • Applications: it takes time to build startups and applications on top of cryptocurrencies. Compare it to the internet, the IP (internet protocol) invention goes way back to 1983. But Amazon is created in 1994, Google in 1998, Facebook in 2004, WhatsApp in 2009, Instagram in 2010, TikTok in 2016. Imagine the void of applications on internet from 1983–2000!
Blockchain engineers — top spot for hottest job skills
  • Technical limitations: More scalability problems are being solved through side channels, lightning network, off-chain solutions.
  • Infrastructure: Exchanges are getting more secure, upgraded to handle more users. Decentralized exchanges and decentralized finance (DeFi) are taking off.
  • Applications: No doubt that is the most lagging domain, since it’s a chicken and egg problem: Application makers prefer to wait for more users before investing in making a new applications, and users prefer to wait for more applications before investing in learning a new domain/tech. In 2017, the first hyped crypto application took off in form of CryptoKitties: a digitally collectible and tradeable cats on Ethereum blockchain. Since that time, Crypto.com lunched the first payment card that pays cashback in cryptocurrency. Many more useful applications will come soon.
CryptoKitties

Interested in artificial intelligence, machine learning, neural networks, data science, blockchain, technology, astronomy. Co-founder of Datathings, Luxembourg

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