Cryptoeconomy: creating new businesses with real-world objects

Cryptoeconomy Blockchain

The true revolution that enables Blockchain technology is not only reduced to cryptocurrencies, although they move billions of dollars daily.

The blockchain is a technology that enabled the greatest change in the last 250 years, since the industrial revolution there has not been such a radical rethinking of economic and mainly financial activities. This phenomenon installs a new field of knowledge: the Cryptoeconomy, and within its main protagonist: the Decentralized Finance (DeFi).

We can define the cryptoeconomy as a new way of thinking and developing economic mechanisms by applying cryptographic techniques and technological tools. It combines economic theory, game/incentive theory, mathematics and technology: networks, computer science, calculation force, etc., which allows the creation of new business ecosystems and technological tools based on the Blockchain.

The systemic effect of these disciplines is a true tsunami that came to destroy the status quo. The “how things are in established systems” is flying into a thousand pieces, since now society and its organizations are going through the greatest disintermediation in history, enabling new economic relationships, with the construction of trust between peers; which enables the design of new investment products where the limit is creativity.

This massive disintermediation, from the hand of trust between peers now supported by the certainty of cryptographic mathematics (the essence of the Blockchain), grants unprecedented levels of freedom to design financial products that now operate at the service of new business models. And not the other way around as we were resignedly used to. These are just some emerging from this planetary disruption, establishing a new philosophy that prioritizes the human being as the central actor of the economy, which by its mere condition of being is enabled for its financialization now without banks or central authorities that label or condition its inclusion and participation.

To be actors of this change, mental models must be put into crisis, since nothing will be as before. Concepts such as tokenization, NFT’s (Non-Fungible Tokens), metaverses, etc. They become valuable raw materials to participate in new markets and business formats. Through tokenization, any type of investment instrument (debt or equity token) with or without public offering is digitally represented, increasing the possibility of attracting investors to unsuspected levels. Our potential market for new projects is no longer the neighborhood or nearby environment, becoming the whole world that becomes a click away. We are talking about the internet of value, not just about information; mobilizing assets now without intermediation barriers.

With the NFT’s, any object in the real world can be represented in the crypto world with the certainty that thanks to blockchain we can know who is the owner of the rights or property of that asset. From a work of art –physical or virtual– a photograph, a Tweet of a famous person or a Messi booty can be “titled” without the possibility of any doubt as to who is the owner.

As a result of all the above, we have unthinkable opportunities to conquer new worlds, such as the metaverses referred to in games like Epic Game or Decentraland. They literally allow you to live on them (“game to earn” or play to win), since the ability to play them is rewarded with cryptocurrencies that have market value. Living from playing is now a concrete option for anyone, as is actually happening in countries like Venezuela, which in fact means a way of subsistence for many crypto believers.