Fix It Again Tomorrow?
Imagine a world with NO BANKS, sounds strange? Not quite!
The banking system that we have become so familiar with is coming to an end. It is a case of history repeating itself.
The world’s first democracy was created in Athens, turning it into the strongest city-state in Greece. From 431 to 414 BC, decades of war led the nation to debase its currency to finance its struggles. Copper was mixed into their gold and silver coins, and the deficit spending led to disaster.
During the latter part of the 3rd century A.D., the old Roman monetary system collapsed. With time, Antoniniani ( Roman Currency ) included less and less silver to the point where the precious metal became a trace element in an overall base coinage.
Move forward to "The Great Depression"; you get the point.
So, we have been working in the shadows, and NOW is the time to move into the light.
Internet 3.0 is paving the way to remove intermediaries from the transactions that we have become familiar with. Simply put, more money for you.
Fiat is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
The value of fiat is derived from the relationship between supply and demand and the issuing government's stability, rather than the worth of a commodity backing it, as is the case for commodity money. Most modern paper currencies are fiat currencies, including the Pound Sterling ( £ ) U.S. dollar ( $ ), the euro ( € ), and other major global currencies.
The gold standard is a monetary system where a country's currency or paper money has a value directly linked to gold. With the gold standard, countries agreed to convert paper money into a fixed amount of gold, think of an "I.O.U". A country that uses the gold standard sets a fixed price for gold and buys and sells gold at that price. That fixed price is used to determine the value of the currency. For example, if the U.S. sets the price of gold at $500 an ounce, the dollar's value would be 1/500th of an ounce of gold. Britain stopped using the gold standard in 1931, the U.S. followed suit in 1933
Internet 3.0 is among us, it brings back value to currency similar to the Gold Standard. BitCoin ( BTC ) is leading the way for cryptocurrencies. Believed to be the prodigy of Satoshi Nakamoto.
Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust-based model. Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for nonreversible services. With the possibility of reversal, the need for trust spreads. Merchants must be wary of their customers, hassling them for more information than they would otherwise need. A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.
A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. A solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.
Not only BitCoin
An Altcoin is an alternative digital currency to Bitcoin. The word Altcoin is a portmanteau of "alternative" and "coin", to form "altcoin". It actually refers to a group of cryptocurrencies, ultimately all the cryptocurrencies other than Bitcoin. In a similar way companies that are listed on stock markets around the Earth, every company should provide a service. Most Altcoins have a real-world problem solving solution, a fundamental reason for the existence. The reason we say "most", is that some do not.