Crypto Updates

The Machine Economy and the Convergence of Web3, AI and Fintech

The Machine Economy and the Convergence of Web3, AI and Fintech

Despite the billions of value and millions of users, many people are still looking for crypto’s “killer use case” and wondering if the one-true solution exists at all. What they fail to understand is that innovation is a process of novelty search and consequent discovery, not a multiple-choice exam with one right answer.

It is okay to not know where things lead, to be lost, frustrated or confused. At one time, it was similarly difficult to see that our mobile phones would control the global taxi network, or that we would swap the physical wallet and our credit cards for Apple Pay, or that traditional media would yield so fully to digital advertising and personalized social networks. Being in the weeds and looking for the way out is the whole point, and only through the practice of doing can we discover what comes next. It is a mistake to think you are not in the labyrinth, just because you cannot see it.

Lex Sokolin, the founder of Generative Ventures, is the fomer Global Fintech Co-Head at ConsenSys, a blockchain technology company.

So here is where we are with crypto.

Crypto assets give us digital scarcity and financial abstraction; just like the hyperlinks of Web2 pointed to information and tokens point us to value. Decentralized finance has built a banking industry for Web3, the global tribe of techno-utopians, hyper-capitalist arbitrageurs, and idealistic DAO artists. The digital property rights system works, and its financial infrastructure has been shown to perform better than the traditional, centralized counterpart. And yet, we are lost in hyper-financialization and self-referential ponzi games. I spent several years at Consensys focused on tokenomics and governance, with the conclusion that our industry still has a lot of work to do.

There can be no sustainable financial services without a real operating economy. GDP must be generated through productive work and plugged into commerce for utility-generating exchange. People make things and other people consume them. Traditional economies allocate about 10-20% of GDP to their financial sectors, and Web3 should be no different. Some of that productivity will come from digitizing and tokenizing products that address real world demand, integrating legacy economic activity. The rest will need to be built on the Ethereum…

Click Here to Read the Full Original Article at Cryptocurrencies Feed…