In a recent Twitter Spaces conversation hosted by Alexandria the Great, founder of Bitcoin Reach, experts in the field of Bitcoin and smart contract technology came together to discuss trust-minimized solutions built on Bitcoin using Rootstock protocols. These were Manu Ferrari, co-founder of Money on Chain, Edan Yago, core contributor for the Sovryn protocol, and Diego Mazoro from Tropykus.
The focus of the conversation was on finding solutions to the problems that the traditional financial system fails to address, and how the tools built on the second layer Rootstock protocol could be used to build a more equitable and trustless financial system. In this report, we will discuss the key highlights of the conversation.
Problems with the Current Financial System:
The experts in the panel pointed out three main problems with the current financial system.
- The monetary base layer is controlled by a few people through central planning, which leads to corruption. The global reserve asset is backed by nothing running on debt and credit.
- The subsequent layer, the banking system, is often used by governments to act outside the law and enforce arbitrary power and control. KYC is an expensive and ineffective system that restricts innovation.
- One layer above, the financial services sector, often decides the winners and losers, leaving most people out of the system entirely.
Building an Open Financial System for All:
The Rootstock protocol could be used to build an open financial system for all, particularly for those who lack proper access to financial services, such as small to medium-sized businesses in developing countries. The aim is to provide solutions to those who suffer from weak currencies or do not trust governments. Building a trust-minimized financial system is a slow marathon that is slowly but steadily gaining steam.
Trustless Stablecoins Built on Bitcoin:
Stablecoins have become popular, particularly in developing countries, but most are centralized and integrated with the traditional financial system. Trust-minimized stablecoins built on Bitcoin using the Rootstock blockchain, offer a much needed alternative with the potential to help billions of people.
The three projects discussed were Tropykus, which offers saving accounts and loans in Bitcoin and Btc backed Stablecoins (DOC); Money on Chain, which issues DOC (Dollar on chain), a censorship-resistant stablecoin pegged to the US Dollar backed with Bitcoin. It also offers a possibility for Bitcoin holders to add liquidity to the Dollar on Chain through Bpro. This allows the opportunity to outperform Bitcoin itself while earning from the fees of the protocol; and Sovryn, which aims to create a sound financial system on Bitcoin, including lending, borrowing, and Bitcoin-backed stablecoins.
Comparison with the Traditional Financial System:
The three platforms are working together to create an economy and an ecosystem that is the opposite of the traditional financial system, which is built on massive debt, unreliable fiat, and politics over the rules. The goal is to build a financial system that is based on transparency, personal sovereignty, and tools that empower financial sovereignty.
A Bitcoin-backed stablecoin is very different from fiat-backed stablecoins as the former involves trusting no one, the code is transparent and open source. A world with rules, and no rulers.
The assets held in reserve by the 3 protocols exist only in the blockchain, making it very easy for anyone to audit them in real time, which is not possible to do so in a traditional bank or financial institution.
The Importance of building outside of the system
People are building this new institutions on the blockchain a decentralized way, so that they can offer services that traditional institutions can’t. The traditional system is subservient to the governments, and in control of too much power and money, this creates moral hazard and breeds corruption.
Decentralized applications, on the other hand, act only as intermediaries between users, they themselves do not hold your funds. Users interact with the Smart Contract, but always hold their own cryptographic key, and thus, remain in control of their financial destiny.
They belong to no jurisdiction and belong to the community that gathers around them. It is a completely new way of operating in the world. They decentralized so that if a powerful entity like a government or a giant corporation would wish to shut it down, they wouldn’t be able to do so.
In conclusion, the experts discussed the potential of building a trustless financial system on Bitcoin using the Rootstock protocol. They emphasized that the goal is to build an open financial system for all that is not controlled by a few people and that anyone has access to it at all times. The slow but steady growth of these solutions is an indication that individuals are beginning to embrace the idea of a trust-minimized financial system built on the greatest asset known to mankind.
Community Call:
We believe that the potential of building a trustless financial system on Bitcoin using the Rootstock protocol is significant, and we want to invite everyone to be part of this journey. We encourage you to subscribe to stay up to date with the latest developments in the space and to share and follow our channels, so we can reach more people and keep growing the Bitcoin ecosystem.
Your feedback is important to us. We strive to improve our services to the community continuously. We want to hear from you and understand your thoughts, comments, and suggestions. Together, we can build a better, more equitable financial system that benefits everyone.
Join us on this journey and help us create a brighter financial future for all. And remember We are Bitcoin!
Alexandria the Great: https://twitter.com/alesander97
Bitcoin Reach: https://twitter.com/BitcoinReach
Sovryn: https://twitter.com/SovrynBTC
Edan Yago: https://twitter.com/EdanYago
Money on chain: https://twitter.com/moneyonchainok
Manu Ferrari: https://twitter.com/manuferraritano
Diego Mazoro: https://twitter.com/diegomazoro
Tropykus: https://twitter.com/tropykus
We Are Bitcoin: https://twitter.com/BitcoinReach
Art of Tomas: https://twitter.com/TheArtOfTomas
