Crypto eats fintech

August 10Marc AndreessenThis software is taking over the world. About two years ago, Angela Strange, a general partner of Andreessen Horowitz, said every company is a fintech company.

This first announcement has become a reality. The Econd Trumpet seems to follow a similar path. The explosive growth of financial devices has entered the B2B product market because software companies have increased banking revenues from their services and because businesses have recognized the benefits. Financial aid can be a powerful force for driving social media. The next steps in this transition cannot be ignored. If all companies were to become fintech companies, those companies would become crypto companies. This is because a significant portion of user revenue and engagement will be generated by crypto devices. Simplifying financial services will be the foundation of crypto. We see it first in how the commodification of crypto is accessible to mainstream fintech platforms, and it will emerge as more important and impactful in the future of crypto network drive life of all financial services.

DevelopmentWeb 3The combination of financial services and consumer demand for more digital assets is driving crypto for every business involved in financial transactions. Integrated platforms and crypto assets will become the foundation that connects global wallets and financial services, driving revenue and significant user engagement. Consumers use platforms and facilitate more B2C and B2B financial relationships compared to traditional financial processes.

Encryption is the product that everyone needs.

Crypto as a monetization and collaboration engine for fintechs

Growing consumer demand for crypto assets is pushing fintech companies and financial services companies to regularly develop crypto assets. Giving users access to crypto assets is no different and has become a quick gamble. In the Gemini 2021 US Cryptocurrency Report, 77% of people thought they owned or "thought about it." Fintech companies should consider adding encryption to their platform, as encryption is an important area of ​​customer service and collaboration.

The best example is Square. The Business Lifecycle was originally a point of sale (POS) solution for small businesses and has since grown into a market leader in delivering Bitcoin consumer products. Since the launch of Bitcoin Purchases on the Cash app in late 2017, the suite's revenue has grown to over $ 1 billion. This has improved Cash App monetization, user access, and app engagement. The app has nearly 40 million monthly users. This is an increase from 7 million at the end of 2017, and Venmo's competitors are expected to respond and develop similar products by 2020.

Robinhood is another of the early sponsors of the crypto asset market, launching Robinhood Crypto in 2018. Since then Robinhood has grown into a cryptocurrency company. In the two months since its IPO in early 2021, Robinhood generated $ 233 million and $ 51 million in revenue from the crypto industry. - Over $ 5 million in Q2 2020. Since the IPO, cryptocurrencies accounted for around 40% of the company's revenue, up from 4% in Q4 2020. The company now has more $ 20 billion in crypto assets on its platform. Revolut, one of Europe's largest banks and another pioneer in the crypto space, has also seen a rise in crypto, as crypto assets held on its platform more than quintupled to $ 742 million. Americans in 2020.

Interest in cryptocurrencies can also affect investors. As Nikhil Trivedi pointed out at the next big event # 37, the crypto industry and commodity industry have become magnets for cutting edge technology. It is part of the result of the development of the ecosystem. Because crypto companies now have the capital and need to equip themselves with good commercial, financial, operational, legal and commercial capabilities. However, the growing attractiveness of cryptocurrencies for high tech is due to the completion of many deals. He provides strong support to the crypto team to build skills across the industry by bringing innovation and interest to people around the world, including computer science, crypto, game theory, building community, economy, finance, culture, media and games. In the battle for talent, cryptocurrency companies are now offering international salaries and driving some of the most prevalent and profitable applications today.

Social platforms are expected to stay ahead of the release of crypto features.

Social media platforms are having a huge impact, reaching 4 billion people worldwide. They are the cornerstone of today's culture and are now the clear candidates for integrating and collaborating crypto assets, including financial services, to engage with more users. We are starting to see that this integration can not only improve financial services, but also create new resources that could not be realized in the existing financial plan.

Twitter recently announced that you can introduce the use of Bitcoin, making it the first social network to promote the use of Bitcoin as a payment method. This is a good example. Bitcoin's Lightning Network is a process built on Bitcoin with the goal of making trading faster and cheaper, by providing better solutions that measure microtransactions that were not previously available.

Likewise, Reddit is looking to expand its Ethereum-based crypto token rewards to community members after launching its experiment in 2020. Users can earn tokens by submitting announcements and recommendations, which allow them to gauge their reputation. in the community and benefit from user interaction. with the platform. Because it is available on the Ethereum blockchain, it can be used by other Ethereum applications.

The teachings and gifts of the community are a negative attribute of themselves, especially given their small life today. But they report that the lines between people and money continue to blur. The early experiences of how crypto products worked gave insight into what would come next, from community culture fundraising to personal name to becoming an asset. As community platforms become more important for small businesses and digital symbols, cryptocurrencies will play an important role in social and financial transactions.

Web3 infrastructure as the backbone of the financial system

As crypto becomes an important consumer and monetization tool for mainstream platforms, its importance to the future of financial services may be impacted the most in one way. Today, the financial industry relies on simple technologies developed nearly 50 years ago, and even on procedures used by technology companies. The first wave of content fintech startups created services on top of the legacy process. Options for open financial systems created on modern crypto networks include:Be the backbone of any financial department, create new business models and improve the customer experience.

We've seen financial services companies consistently use crypto “tech stacks” because they recognize the potential for cheaper, more efficient payments and open access to financial products. . Visa announced earlier this year that it would start trying to secure payments on the Ethereum blockchain. Visa is happy to use the large cryptocurrency industry as the basis for exchange transactions. This is still the case today, but Visa cooperation acknowledged that the growth of the fixed part inventory of the fixed part has increased from over $ 1 billion in 2019 to over $ 100 billion today. , thanks to interactions with open source funders. applications. Fast and affordable payment capabilities and existing technological processes.

Shortly after Visa's announcement, the European Investment Bank ("EIB"), one of the world's largest banks, announced digital bonds on the Ethereum blockchain. The EIB mentioned the benefits that network-based crypto financial services can bring to business partners, including reducing stable costs and interdependence, improving financial investments and making business more transparent for members, and faster payments.

The adoption of an encrypted network infrastructure by major financial services is only in its infancy, but the integration of Visa and the EIB may show that encrypted communications are financially accessible in ecosystems and are becoming simplistic models for financial, service and economic applications. It's hard to see that most digital markets haven't moved on to the cryptocurrency process. Any of the contract products for real estate transactions will come into contact with the payment layer cryptocurrency. The simple fact is that financial services will operate over more encrypted communications in the future.

The new financial framework represents the evolution of the economic model ...

Financial plans based on encrypted communications not only benefit existing financial services, but also enable new business models. The results provided for applications created through access and configuration through tokenization give users access to potential products (and groups capable of creating business products) that are not present. can be supplemented with the usual economic models. . The result is an ecosystem of financial building blocks that anyone can create or nurture without deducting middle class costs and human bias from the exchange. We have seen some of the most profitable business ventures in the area, such as Loan to Friends, which includes two of the biggest loan companies today, Aave and Compound.

Additionally, products developed on top of encrypted networks are inherently globally accessible and cross-platform combinations are possible, fundamentally changing the way platforms reach end users and integrate with others. policies (today traditional businesses and similar to how other businesses cooperate to distribute their products). The elegance of this setup is just a few lines of rights to access financial products, allow a single overhaul to open dozens of other new developments, and be designed for local, national and international contracts based on smart agreements. It's about simplicity for your business. Aave provides important examples of the unification of forces. Integration with multiple applications to give users access to "quick loans". One way for users to borrow tokens without any liability is to lend and use their credit tokens for sharing.

Its transformation could include extending financial services to communities where banks are scarce and simplifying the “non-financial” platform to include financial aid in their ecosystem. We've seen this with the emergence of game monetization platforms like Axie Infinity, and we should expect these “Lego blocks of money” to continue in historical non-financial platforms.

and a better user experience

While creating the forefront of innovation, technologies most often advance the user experience. Encryption is no exception. Secure interfaces to encrypted applications on mobile devices are minimal, and desktop interfaces often require a multi-step process to ensure cost and performance. . On the surface, the encryption has enough room to enhance the experience.

However, as crypto processes have mushroomed into more user-friendly integrations and mobile app capabilities begin to emerge, the 'ear' used by users has taken advantage of the core crypto innovation first.

Many start-ups are based on providing financial services for everyone, and knowing that this goal is not true until Bitcoin provides a platform for distribution. Encrypted networks provide financial services to anyone in the world with access to the Internet and smartphones (4.7 billion and 6.3 billion people respectively). These open connections result in zero access to traders. This is because individuals or businesses can create financial products using a transparent base and open APIs provided by existing open processes. As a result, users get better benefits,Important examples are given below.:

The crypto protocol enables fast and affordable 24/7 international transactions, while allowing users to continue and store their assets.

Cross-platform money transfers can be done anytime per minute instead of meeting the exchange rate limit and multi-day trading time (recurring fees and new offers). This type of open competition will accelerate the pace of innovation in these financial services. As we all know, the user experience on root platforms deteriorates as they get started, and they depend more on the impact of the network than on continuous innovation to get there.

It frees users from the pervasive risk of engaging in referrals through unreliable managed accounts that allow contractors to handle transactions, decline, pay interest, etc. Analysis of the state of the application code base provides "transparent accounting" allowing users to understand in real time product and platform capabilities, loan quality and existing resources.

With the emergence of new business models, better products and better customer experiences will follow. The next step in this transition will be the emergence of a company that embraces network communication and offers the same functional and user-friendly experience as our customers. The use of the business has become popular over the years. In a few years, crypto will strive to capture some new and emerging markets and become an integral part of the global financial market, and we will never know.

Although the crypto ecosystem has grown and new business models have emerged, there are still significant risks as rapid economic growth becomes increasingly important to governments and regulators. Lawmakers have different interests and different ways of acting, which creates uncertainty as to how (and how) 1930s law could be used to control the process. Environmental management will remain chaotic for the near future. Although friends of government and regulators have become more aware of the benefits of crypto financial services, they still have hope for the long term.