Title: The Rise of Alternative Currencies and Government Functions in 2019
H2: The Shift Towards Alternative Currencies
Over the past few years, there has been a noticeable shift in the creation and issuance of cryptocurrencies. This shift has given rise to alternative forms of currency, challenging the traditional monopoly held by central banks. In 2019, this shift is expected to accelerate as prominent investors such as Andreessen Horowitz, Bain Capital, and Peter Thiel have invested over $300 million into stablecoins – projects seeking to create digital versions of traditional currencies like the dollar and euro on the blockchain.
H3: The Concept of Stablecoins
The concept behind stablecoins challenges the traditional notion of currency creation by recognizing that the majority of dollars exist as digital records rather than physical notes. This realization, combined with the accessibility of creating blockchain-based cryptocurrencies, has sparked the development of projects aiming to issue digital currencies equivalent in value to traditional fiat currencies.
H3: Developing New Dollars Through Blockchain
Projects such as Maker and Basis are leading the charge in creating new digital dollars that are not just representations of central bank-issued currency, but entirely new units of value existing solely on the blockchain. Maker, for instance, backs its newly printed currencies, referred to as DAI, with a cryptocurrency called Ether, while Basis uses an algorithm to maintain the value of its digital currency in relation to a traditional dollar.
H2: Decentralization and the Shift in Power
One significant advantage of these alternative currencies is that they operate on decentralized algorithms, free from the influence or pressure of a central issuer. This independence enables them to compete with traditional central bank-issued currencies without facing external interference.
H2: Expanding Beyond Currency: Alternative Government Functions
In addition to the rise of alternative currencies, 2019 is set to witness the launch of projects aiming to offer alternative solutions to key government functions. Bitnation, for example, promotes itself as “Governance 2.0” and provides a platform for digital citizenship, allowing multiple service providers to compete in offering various government services, including dispute resolution and basic income provisions.
H3: Unconventional Innovations: FOMO3D
One unconventional but intriguing example is FOMO3D – an autonomous pyramid scheme that pays out a dividend and has been designed to continually provide a “basic income” to its participants. Despite its unconventional nature, it has been successful in generating regular income for those involved.
H3: Innovative Legal Systems
Kleros is another project challenging traditional government functions, offering a decentralized network of arbitrators as an alternative to cumbersome and costly legal systems. In this system, parties involved in legal disputes place funds into a blockchain escrow, and any disagreements are examined and resolved by the network of arbitrators, with their rulings being enforced through the blockchain.
As 2019 unfolds, these alternative systems and currencies are poised to disrupt traditional government functions and currency systems, paving the way for a new era of decentralized financial and governance models.
