in

Most people do not understand synthetics. They think that derivatives are only good for synthetic stocks. While that is a good part of synthetics, it is just replicating our existing market on the blockchain. What is far more powerful and exciting is that with synthetics we can do something new.

I read the linked article a couple of weeks ago or so and was duly impressed. Definitely I was someone who didn’t quite see the full ramifications and possibilities with these synthetic things. “Oh, kinda cool, I guess. Can trade stocks anytime outside of ‘regular hours.'”

Years back when first learning about “blockchain technology,” I *knew* within the span of, heck, minutes that this was truly revolutionary and something like nothing else out there. I would tell friends and acquaintances about DLT only to have eyes rolled or polite dismissive nods sent my way. It’s a difficult concept to grasp, particularly with the nature of daily life and education and entrenched ideas. I’m fortunate and grateful to even have been lucky enough and in the right time and place to get the chance to learn about it.

As it was, there was something with it all that really stirred the imagination. I remember thinking, “This is going to change *everything.* We can’t even being to imagine all the different possibilities.” I still think that and, practically, know that. There’s almost a very basic sense of *logic* itself within “blockchain.”

After reading the article linked here, there was remembrance back to some of that initial excitation around the space. *This* “synthetic talk” is the kind of thing that I/many/we had no idea would be invented, would manifest, would be created so many years later. There are soo many other possibilities, but this write-up was amazing to me and thought it would be worth it to share. Very exciting!

Here is an excerpt from the article:

>*Synthetic Case 1:*

>First, you can now give anyone in the world performance rewards based on specific criteria. Imagine the Mayor of a city, they get their base salary but they also get a bonus package that basket of tokens representing the inverse unemployment rate, the city happiness score, and the inverse crime rate in their city. The better results they create for their city, the more their tokens are worth.

>*Synthetic Case 2:*

>Synthetics are powerful because you can boot strap liquidity in anything. Such as the “Average Annual Rainfall in Seattle.” But why does that matter?If you can get liquidity in any discrete quantifiable event then what have you created? The world’s most accurate financial data system.

>What is financial data used for?

>Insurance, lending, hedge funds, risk mitigation, banking, yield, mortgages, credit scores etc.

You can find more information [here](https://thebaoman.medium.com/a-dumpling-vs-wall-st-why-we-need-synthetics-fb2eb87ccb86) if your curiosity is piqued andor you would like to read a little more.



View Reddit by pale_blue_dotsView Source

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

One Comment

Loading…

0

What do you think?

India Won't Be Completely Shutting Down All of Bitcoin (BTC) and Crypto Says Finance Minister

India Won’t Be Completely Shutting Down All of Bitcoin (BTC) and Crypto Says Finance Minister

Bitcoin price dips below $60K — But here's why a bigger rally may be brewing

Bitcoin price dips below $60K — But here’s why a bigger rally may be brewing