Cardano Dan's Newsletter - Issue #21
The Future of DeFi
Welcome to the lucky 21st edition of my quick-hitting newsletter about Cardano, Crypto Trading, Blockchain, Monetary Policy, & Data Privacy.
I hope you enjoy this newsletter and it gives you a glimpse into what could come next for DeFi.
(Note - I’m releasing this edition early because I think Cardano could well breakout very soon. Not announcing release of the newsletter on twitter until tomorrow. Subscribers get the best alpha! Please share the free alpha with others you love.)
Quote of the Day
“The future will be decentralized.”
— Charles Hoskinson, 2014 TEDx Talk
Charles predicted what we’re seeing today with DeFi all the way back in 2014. Yep, you’ve got that right, even before Ethereum went live. You really should listen to the talk if you haven’t before.
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Over the past couple of newsletters, we’ve talked a lot about what’s already happening in the world of DeFi and how Cardano is poised to do those things better than the platforms that are currently doing them.
Let’s talk about what’s in store for the future of DeFi. But before we do…
In The News
Just after last newsletter finished talking about the importance of liquidity and how “Cardano Liquidity is Coming,” IOHK and Orion announce a partnership for Orion to become the “first liquidity aggregator” to the Cardano blockchain.
Once again, I’m on the same wavelength as team Cardano!
Back to the future of DeFi…
Unbanked Penetration
Remittance is a transfer of money, often by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, to an individual in their home country or homeland.1
In Charles’ TED talk, he spoke about the amount of remittance that occurs each year (it’s a LOT) and the cost of sending money back home to a foreign country (~10% on average).
Cardano will change that. Not only by reducing fees but also by providing financial services to people who have never had them before, increasing economic opportunities and decreasing the need for charity and remittance.
Identity
A critical part of “banking the unbanked” is digital identities. Digital identities are necessary for a variety of financial services that we’ll talk about in a bit.
IOHK has been doing research in this space for a long time. Their platform, Atala PRISM, is one of Cardano’s least talked about and most important discriminators. It is going to be the thing that secures many deals with nation states to make Cardano the platform of choice.
The key to this digital identity platform is that is is a decentralized identify solution “that enables people to own their personal data and interact with organizations seamlessly, privately, and securely.”
Identity-Enabled Solutions
With decentralized identity in place, we can do all sorts of fun Decentralized Finance things that are otherwise very challenging or altogether impossible.
Insurance
There are all sorts of insurance use cases that are opened up by identity. Check out this analysis by Deloitte that outlines 6 use cases about “how health and life insurers might leverage blockchain and related technologies to strengthen key elements of an insurer’s value proposition.”
Property Rights
Blockchain and smart contracts have the potential to revolutionize the real estate business.
This can transform the way that we do business in big ways in the US and Europe, but it can be that much more transformative in developing nations where property is often stolen because there isn’t any way to prove ownership.
Cardano is poised to fix this with it’s superior smart contract and identity solutions.
Stay Tune for Tomorrow
All of this leads to exciting things for developing nations. Stay tuned for tomorrow’s newsletter where I’ll give you a look ahead to our topic for next week.
Technical Analysis
I’ve been saying that Cardano is getting really close to its next move and I still think that.
Let’s look at this expectation from a new angle. Binance and Cardano have been behaving very similarly.
Here’s a picture of a break-out that Binance had today.
Now let’s look at Cardano ADA’s chart below. The spike you see above the downtrend resistance was the Coinbase listing. Otherwise, the chart looks very similar to Binance.
Now let’s look at the two on the same chart. Since late November, these two cryptocurrencies have been pacing one another. At the beginning of Jan, Cardano moved first and Binance followed. Now it’s clear that Binance moved first and I think Cardano will follow just like Binance did last time.
Before You Go
What do you think? I’d love to hear your thoughts, questions, and feedback below!
This newsletter is for entertainment and educational purposes. I’m not a financial advisor and you should do your own research and consult a financial advisor before investing in cryptocurrencies.
https://en.wikipedia.org/wiki/Remittance