Not too long ago, crypto enthusiasts were viewed with skepticism or even ridicule. They were nerds on the forefront of a technology that nobody cared about. They were ambitious digital nomads promoting a currency that nobody could touch, see, or hardly even use.
Obviously, things have changed quite a bit.
Now, anyone who is avidly anti-crypto seems ignorant of the most important investment boom of our generation. As cryptocurrencies accelerated in value throughout 2017, everyone seemed to get involved. Popular crypto exchanges were overrun with thousands of newcomers each day, and one exchange even described the influx in activity as “overwhelming.” While institutional investors flocked to the stock market, millions of individuals entered crypto markets with optimistic enthusiasm.
By the start of 2018, all this interest created a collective market cap of more than $800 billion. Not bad for an industry that required 10,000 Bitcoin to buy two pizzas in 2010.
Now, a deluge of digital currencies comprises a complex ecosystem that ranges from the hilarious Dogecoin to the enterprise-driven Ethereum.
A Diverse Crypto Economy
Not only is the crypto ecosystem increasingly valuable, but it is also incredibly diverse. Hundreds of digital currencies create a complex and vast crypto ecosystem. What’s more, new currencies are constantly being added to the mix.
According to data compiled by CoinSchedule, there were 211 digital currency launches in 2017. Just two months into 2018, there 48 new ICOs have collectively raised more than $1 billion. This is well ahead of 2017’s robust pace.
CryptoSlate, a website that tracks and reports on cryptocurrency, has compiled a list of more than 1,500 digital currencies currently in operation. These currencies offer vastly different features through their unique functionalities and purposes. Currently, it can be challenging to acquire and use different cryptocurrencies without selling a stake in another currency.
A Platform for Crypto Loans
Now, Fusion, a blockchain-based platform that connects blockchains, is offering a novel solution. Using smart contracts, it allows users to loan or borrow digital tokens across otherwise disconnected blockchains.
Fusion is the brain-child of DJ Qian, a Chinese entrepreneur who established himself through his work on the popular platforms Quantum and VeChain, which provide blockchain solutions enterprise initiatives and supply chain management.
Traditional loans are fraught with trust issues, but Fusion’s smart contracts create a trustless system that allows all participants to have confidence in the process. In practice, smart contracts operate like a digital escrow service that automatically executes when certain stipulations are met. Lenders and borrowers agree on the amount, interest rate, and terms, and then the smart contract takes care of the rest.
The Case for Crypto
There are numerous use cases for this service, but with an expansive and expanding crypto ecosystem, the primary implication is obvious: more people will be able to participate in the multifaceted and diverse expressions of digital currency.
As other platforms and decentralized applications expand in capability, they will create a market for risk-free crypto transactions that will require crypto loans to adequately participate in the breadth of experiences available on the blockchain. In other words, although crypto has exploded in popularity, we are just now exploring the tip of the iceberg of its usefulness and availability.
Of course, connecting blockchains is a natural and necessary progression for blockchain. As the many disparate platforms begin communicating and coordinating with one another, we will truly have a decentralized network that can compete with the current, centralized internet that currently dominates the technological landscape.
Platforms like Fusion are bringing the blockchain together, and they are enabling individuals to lend or borrow digital currencies in a safe, convenient, and secure way. This is both a benefit of and an addition to the current crypto market, and it may be the catalyst that enables it to continue to thrive well into the future.
For more information please visit Fusion.
*The views expressed in this article belong to the author. Bitcoin Chaser does not endorse, vet or recommend ICOs to its readers. The reader bears all the responsibility for any actions he or she takes based on the information presented in this article.