Decentralization And The Tokenization Of Everything

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The world of cryptocurrency is exploding. However, as they say, "You ain't seen nothing yet".

For all the growth that took place, there is still a major problem with what is going on. We still have not scratched the surface of the potetenial.

Why? The existing laws.

In the United States, most of what is being applied to cryptocurrency by the SEC stems from the Securities and Exchange Act. The problem is this law was passed in 1934.

That means we are looking at digital assets through the lens of a law that goes back 86 years.

To provide some contrast, here is what a new car looked like back then.


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Do you think things changed a bit in the last near century?


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It is not like the first vehicle had an interior that looked like the one from 2020.

Frankly, it is absurd to think about the idea that both those cars are near comparable. Yet, we use laws written in that era to dictate the behavior in the world today.

If we really want to drive home the point, here is a computer from 1934.


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With technology like that, do you think the writers of the laws back then had the mindset to perceive what digital assets would be and a world where trillions of dollars are traded daily, most transactions in a matter of seconds?

The answer is no.

Here is why the need for decentralization is so great. It is the pathway to rapid advancement and innovation.

While the SEC and other alphabet entities will claim they are "protecting the public", the reality is they are just slowing things down. When only the biggest companies can do something due to regulation, that means those without the means will be participate. When it comes to innovation, this is tragic.

The tokenization of everything is what the future looks like. Many still hold onto the idea of one main currency dominating. That is misguided from what I can see. In fact, a decade from now, things will likely be the opposite. There will be billions of tokens out there, representing value of most anything people can think of.

To start, the most obvious arena is real estate. It is ideal for tokenization since it is a non-liquid market that is slow to operate in. Tokenization will bring speed, agility, and the ability to fractionalize. This will open up the market to a much larger group of investors.

Over time, there will be trillions of dollars more pouring into different holdings as the average person gets involved. Tokenization makes properties like low cost stocks, open to most anyone. Today, anyone with a few dollars and a trading account can buy a $10 or $15 stock. Of course, even that industry is starting to offer up fractional shares of companies like Amazon and Tesla.

Decentralized Exchanges

This is probably one of the most important features in the entire cryptocurrency space. Having easy to use decentralized exchanges is what will allow for the archaic laws to no longer be an issue. By having everything regulated, we see it falling into the hands of the same players. Coinbase is looking to go public so who do you think will end up owning that one? The same major players on Wall Street will call the shots.

A decentralized exchange should allow anyone in the world to put up an asset that is for sale to the masses. There should be not onerous regulations or hurdles to overcome. Of course, the buyer needs to be mindful of what he or she is purchasing.

What this does is removes the cost from securitization. Presently, since it has to go through those who are approved, licensed dealers, the cost is great. It costs millions (even tens of millions) to bring a company public. That is an outrageous sum considering the technology that we have today.

Now compare that to the cost of setting up a token tied to a smart contract. That is something that can be coded very easily and in a short period of time. This means that the applicability jumps exponentially. Suddenly, a duplex in Des Moines or a single family home in Dublin can be tokenized.

We also can see investors jump in from all over the world.

Innovation

It is no secret small businesses are being wiped out in droves. We are seeing the elimination of millions around the world. We are nearing a time where the large corporations have an even greater market share. Ultimately, it will form monopolistic conditions whereby people are stuck with one or two choices.

Decentralization and tokenization will help to reverse that trend. It will stimulate innovation leading to the time when anyone can tokenize an idea. Many will be completely worthless. There will be a few, however, that end up being major successes. Of course, this will foster a copycat movement where the idea will be picked up by others.

When you have individuals starting to innovate while having the resources, things really start hopping. Most innovation does not come out of major corporations. Instead, they are the ones to benefit since they take what start ups produce and buy them. This means they have the technology yet someone else came up with the idea.

This also feeds into their power. Once they have the technology, they control it and have the means to keep anyone from entering that realm. Cross the line and a litany of lawyers will show up.

Open source is very powerful. The world is suffering due to the stifling of advancement through the control system. We need to move passed this. Unfortunately, anyone waiting for the system to change will likely be waiting a long time.

It will not change anytime soon.

Thus, it is up to us to do it. Decentralization offers a lot of benefits to the advancement of humanity. Couple this with tokenization and we see a completely new economy form almost instantly. People will be able to invest in projects that are dear to them. The flip side is that the innovators of the world will have access to billions of people with capital looking for a home.

Will there be scams? Certainly. Is there a place for the regulators? Of course. Let us not forget that almost every country has laws in place against fraud. The SEC for example, could leave the innovators alone and just go after the fraudulent cases. That alone would fill their calendar for a few years.

The reality is the tokenization of everything is coming. It is only a matter of time before things heat up. Countries that depend upon their archaic laws will end up falling behind.

It is something that is going to happen very quickly.


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Bang, I did it again... I just rehived your post!
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Surely tokenization and decentralization will wipe out the power that centralization has put in place.

The reality is the tokenization of everything is coming. It is only a matter of time before things heat up. Countries that depend upon their archaic laws will end up falling behind.

Most African countries if not all, will lose power over the poor masses. I hope this happens soon, alot of people will benefit from what comes with decentralization

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The fact that many Africans are on here is very telling about the direction of things.

If the money starts to flow in from crypto and people are beginning to amass some wealth, that makes them less dependent upon what is going on in their own country.

It is something that has to spread across the world. Sadly, those places that need it most are the most resistant to it from what I can see.

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It is something that has to spread across the world. Sadly, those places that need it most are the most resistant to it from what I can see.

Surely it will help them to be less dependent on the government. The issue is just that most people are not aware or they are not educated enough to spot the potential and opportunity it has.

I have been on steemit around 2018 and it was until I joined leofinance that I now get the idea and the aim of decentralization and what the blockchain is about. Ever since I have dedicated my time and effort to learn more.

I have also tried to enlighten people around me with the little I know and they just give a positive sign, while deep down they feel it might be a scam,or something fishy as they see it to be "too good to be true".

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That means we are looking at digital assets through the lens of a law that goes back 86 years

I speak about why things like this brings a negation to the growth decentralisation. Basically the innovations that decentralisation brings is because a lot of people will have a say and the more people have a say the more innovations will spread and for a breakaway to happen, laws and norms and regulations that dates back such a lot time has to be binned this is when we'd realise we haven't even scratched the surface.

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Innovation is key on all levels. Without that, economies stagnate and die.

We are seeing a lot of that around the world. It is time to kick things in high gear. The governments of the world have held this all back.

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The governments of the world have held this all back.

This is because the government of the world is stunchly bureaucratic in nature and these negates the kind of growth that decentralisation and crypto brings, hopefully this will change soon.

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That and it is concerned with power, not growth.

Politicians do not care about anything other than gaining more power.

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it's funny that the US who prides itself with innovation uses such archaic laws when it comes to digital assets. In Eastern Europe governments are kind of ignoring the whole crypto stuff which is more than fine with me :P

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The US is not as innovative as it likes to claim. The NGDP is falling below 4% and likely heading to 2% before it bottoms. This means innovation is not providing a boost to the economy. This makes sense since most of the jobs we produce are parasitic and provide little value. We excel at developing more messenger applications and reward that with a $3 billion market cap yet have done little to produce something that actually adds to society.

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I think the banks agree with the decentralization as well. I remember watching a video recently talking about JP Morgan and how they want to create their own stable coin. They did so for 3 reasons: 1) More resistant to being hacked, 2) faster transaction times and less fees and 3) higher interest for users with stable coins. As you can see they see the benefits of tokenization but whether they will allow tokenization of projects and businesses are unknown.

The problem is exchanges is that you have to ensure they will not scam you. Which is why fully decentralized systems need to transparent for people to fully trust them but at the same time, we need to ensure whoever is holding the money (in their own account) also isn't messing with it.

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I see decentralization as opening up more choices. Yes with the exchanges there is security issues which does concern me a little and suppose it will be sorted out someway. Being less reliant on current systems is a dream for many of us and the sooner it happens the better.

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I think that in terms of practical effects (because that's how most of society understands things), decentralization and tolkenization will not be seen as quickly as we would like.

However, things that have to start somewhere and we are on the right side.

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I think that the US electoral law should be put to the old and outdated laws (although I should not have an opinion, being far from the US both physically and in terms of understanding).

There will be billions of tokens out there, representing value of most anything people can think of.

I think that everything you say about tokenization is pertinent because it is obvious that you master the problem well, I still wonder how the world will be with so many coins, will it not be a fragmentation of the world instead of something to unite all countries?

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Your post reminds me of trying to grapple with the idea of "internet of things" around 15 years ago. It was just hard to understand until you started seeing it all around you. I find it interesting that "tokenization" is becoming more of a buzzword now. I remember doing hackathons for tokenizing real estate in 2013ish. The industry people had now idea what the nerds were talking about. (I was on the marketing end. less nerdy). Big business is sooooooo slow to adopt but it is now becoming more normal to talk about. Gonna be an interesting ride.

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I feel these type of laws with make the USA the last one to the party.

The new economy and tokenization of everything is coming and the USA will only come along kicking and screaming.

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Also believe DEX will be key and therefore heavily targeted by regulations.
But the ones surviving the war will strive and their coin will fly high.

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That is a really great way to frame it (showing the difference in technology). I think that probably hits home more than all of the text. Not that he text wasn't great too! :)

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