Table of Contents

We needed to have a crash of the centralized banking system in 2008 to birth shared and circular economies. Out of that came Satoshi Nakamoto and the bitcoin whitepaper for a peer-to-peer cashless system, dapps, nfts, defi and more

The potential of block chains to disrupt industrial sectors, commercial processes, governmental structures or economic systems seems to know no bounds.

We suggest that the transformative power of block chain technology should not be seen as a threat to existing systems of governance; rather, it should be seen as an opportunity for national and international institutions to defend the rights of those they represent and to accelerate our collective progress towards meeting the United Nations’ Sustainable Development Goals.

The Infamous 'Bitcoin Pizza Guy'?

The Man Who Blew $365 Million Haul And Has No Regrets

Do you remember the Infamous 'Bitcoin Pizza Guy's"?

About 11 years ago on May 22, Laszlo Hanyecz, one of the early adopters of the newfangled cryptocurrency that had just been coded into existence, purchased a pair of Papa Johns's pizza pies using 10,000 bitcoins.

On May 22, 2010, 19-year-old Calfornia Student, Jeremy Sturdivant noticed a bizarre request on a cryptocurrency internet forum. The post said

'Receive 10,000 Bitcoins in exchange for the delivery of two large pizzas to a resident in Florida'

Sturdivant replied to Laszlo Hanyecz who had posted the request. His message was simple.

LH: 'I'll pay bitcoins for a couple of Pizzas"  

LH: "I like things like onions, peppers, sausage, mushroom, tomato, pepperoni, just standard stuff. No weird topping or anything like that'

LH: "If you are interested, please let me know and we can work out a deal'

JS: filled the order, sending him 2 large pizzas from Papa John's making the transaction. Arguably the first physical transaction made with Bitcoin, ever.

Laszlo, the programmer who paid the 10,000 BTC for 2 pizzas was quoted by CoinTelegraph back in 2018 as saying that he has no real "regrets” about shelling out the bitcoin that he had mined willy-nilly more than a decade ago. Overall he was just happy to be pioneering an open-source project that he believed was good for the world.

Sturdivant, who received the 10,000 BTC for filling the order was quoted on "telegraph' saying "if I had treated it as an investment. I probably would have held a bit longer. A lesson for everyone. "However, I used the BTC to cover expenses whilst traveling the US with his girlfriend".

Laszlo Hanyecz and Jeremy Sturdivant will go down in history as the pioneers of the first public peer-to-peer transaction using bitcoin and cryptocurrency to buy a physical product. 2 Pizzas!

The purchase equated to roughly $41 dollars back in 2010, based on the going rate for bitcoin back then. However, those 10,000 bitcoins BTCUSD would be valued at approximately $600 million at the current rate for the world’s most prominent crypto, which was last changing hands at roughly $50 -65,000 USD.

That's 300 million USD per pizza!

INTRODUCTION

Centralised versus decentralized systems

the primary difference between centralized and decentralized systems/networks has to do with the question of who has control over the network itself.

Centralised: Singular Authority: Government, Founder,; Linear economies
Decentralised: Power to the people ; Circular and Shared economies

In a centralised system, a singular authority or administrator retains total control over all aspects of the network. This authority is typically exerted through a centralised system that manages all resources, data, and permissions (freedoms). A centralised system also locates all major processing power in this primary server. A governing body or an outdated business hierarchy are simple examples.

Decentralised systems are self-governed, autonomous, and are organized in a much more distributed fashion. Each person is a singular node, where the system/network functions as a separate authority with independent decision-making power regarding how it interacts with other systems. These networks also distribute processing power and workload functions among connected servers. An example is a distributed workforce versus an employee structure. Another example is the FIAT money system versus blockchain and cryptocurrency.

Centralized organizational structures rely on one individual 'me' to make decisions and provide direction for the system/network as a whole. for instance, Donald Trump signed executive orders without seeking feedback from other experts or the people.  Decentralized organizations rely on a collective team environment "WE' at different levels in the system/network. Individuals at each level may have some autonomy to make business decisions. For example, controlling your own money separate from centralized banking systems.

ONE-KEY MESSAGE

Today, the fight between centralized control and decentralizing self-governing autonomy is real. A simple example is governments and banks attempting to "tax" every cryptocurrency transaction in a decentralized system. Essentially, trying to control a system designed to give power and control back to the individuals in the network. Ultimately, we the people are the majority and we will choose where the ease and flow are.

Today in a centralised financial system

The wealth of the richest 1% equals to the other 99%, where over 1 billion people will go to bed hungry tonight and more than 700 million people have been pushed into extreme poverty living on less than $2 per day.

We do not have an issue or resources. In fact, we have more than enough food to feed 10 billion people. We have an issue with the distribution. Where over 40% of food is wasted in developing countries. Imagine if we found a self-governing and autonomous way of redistributing the 40% of food waste to the 1 billion people who will go to bed hungry tonight. The future is ours to choose. Centralized systems where there is one pie where 99% goes to the 1%, or decentralized systems, where everyone can win with an expanding, self-sustaining and regenerating pie. Ask yourself, what type of world and systems do you wish to see for future generations?

14 CORE CONCEPTS: THE HISTORY OF BLOCKCHAIN & CRYPTO

  1. CENTRALIZED VS CENTRALIZED SYSTEMS
  2. 2008 GLOBAL FINANCIAL CRISIS  
  3. WINNERS IN 2008 Crisis.  
  4. LOSERS IN 2008 Crisis
  5. ICELAND DID THE RIGHT THINGS IN 2008
  6. THE BIRTH OF SHARED ECONOMIES AND PEER-TO-PEER SYSTEMS.
  7. THE BIRTH OF CIRCULAR ECONOMIES & SOCIAL IMPACT
  8. THE BIRTH OF DECENTRALISED MONEY & FINANCES
  9. BLOCKCHAIN CAME FIRST, BEFORE BITCOIN
  10. SATOSHI NAKAMOTO & HONEST MONEY
  11. BITCOIN A Peer-to-Peer Electronic Cash System
  12. ETHEREUM: SMART CONTRACTS
  13. THE FUTURE:  DEFI, DAPPS, NFTS...
  14. UNBANKING THE WORLD

1. Global Financial crisis of 2008

Too big to fail

Before we understand the birth of blockchain and why it was consciously engineered into our reality. We need to take a few steps back and see what drove the blockchain pioneers to build it in the first place.

The 2008 crash was the greatest jolt to the global financial system in almost a century – it pushed the world’s banking system towards the edge of collapse.

For a simple version of the truth, a movie called "the big short" shared the story of a  Wall Street guru Michael Burry, who realized that a number of subprime home loans are in danger of defaulting In 2008.

As a result,  Burry bets against the housing market by throwing more than $1 billion of his investors' money into credit default swaps. His actions attract the attention of banker Jared Vennett (Ryan Gosling), hedge-fund specialist Mark Baum (Steve Carell), and other greedy opportunists.

Together, these men make a fortune by taking full advantage of the impending economic collapse in America.

What caused the 1929, 2008 crashes?

Dr Linda Yueh, an economist at Oxford University and London Business School, adds:

“Every crisis is different but this one shared some similarities with the Great Crash of 1929. Both exemplify the dangers of having too much debt in asset markets (stocks in 1929; housing in 2008).”

The catalyst. On 15 September 2008, Lehman Brothers [a Wall Street investment bank] filed for bankruptcy. This is generally considered to be the day the economic crisis began in earnest. £90bn was wiped off the value of Britain’s biggest companies in a single day, and there was even talk of cash machines running empty.

The then-president George W Bush announced that there would be no bail-out.

“Lehmans, one of the oldest, richest, most powerful investment banks in the world, was not too big to fail,” says the Telegraph.

On a global scale, our inefficient centralized systems led to rising energy prices on global markets, leading to an increase in the rate of global inflation.

“This development squeezed borrowers, many of whom struggled to repay mortgages. Property prices now started to fall, leading to a collapse in the values of the assets held by many financial institutions.'

Who won and lost in the 2008 GFC?

2. Winners in the 2008 Crisis.  

Although the recommendation to buy when there's blood in the streets has been attributed to more than one rich businessman. These 5 investors understood this to be a solid approach to creating substantial wealth in the crisis.

Next time there is a crisis, maybe think like these guys "what is the opportunity in this crisis". In the 2020 pandemic, cryptocurrency was one of these opportunities. Perhaps a more positively geared situation. Even with the big players manipulating the market cycles along the way.

Congress passed a $700 billion bailout plan called the Troubled Assets Relief Program, or TARP.

  1. It was originally supposed to buy the banks' bad mortgage investments but has since been used for a wide range of bailouts.
  2. In 2008 big businesses were bailed out first. Insurance giant American International Group, or AIG, got $40 billion from TARP. And most recently, General Motors and Chrysler got a short-term loan from the program.

3. Losers in the 2008 Crisis

Many homeowners have asked where their own bailout is, saying that Washington has focused too much on Wall Street and corporate America.

  1. Homeowners lose: This year might be best summed up as the year of foreclosure. In November alone, one of every 488 homes in the United States received a notice of foreclosure,
  2. Mum and dad investors lose: Just when it seemed the year couldn't get much worse, news came that trader Bernard L. Madoff had allegedly lost $50 billion -- yes billion -- worth of investors' money in a massive scam.
  3. Many people lost money when insurance giant American International Group, or AIG, was taken over by the government. In a matter of days, the company's shares became nearly worthless.
  4. Retirees & Pensioners lose: Mr. Fryer said a lot of people would have lost their nest eggs because of this. "The worst off people were people who were either just before retirement or in retirement," he said.

4. ICELAND DID THE RIGHT THINGS IN 2008

Only one country did the right thing. Iceland. Rather than bailing out the banks, big businesses,  and the wealthy people who ran the "people's monetary system" into the ground. They put them in jail for mismanagement. Seizing their assets and redirecting them back to the people. Iceland is leading the world in equality, transparency, and justice. We should take note.

All of the criminal cases are linked to the notorious crash of the Icelandic banking system in 2008.

In the past few years, the Icelandic judiciary has sentenced 36 bankers to a total of 96 years in prison. All of the criminal cases are linked to the notorious crash of the Icelandic banking system in 2008.

Eleven of those bankers, who are former employers of Kaupþing, were sentenced to a total of 35 years in prison, while the other seven individuals from Glitnir HoldCo. were sentenced to 25 years.

5. THE BIRTH OF SHARED ECONOMIES AND PEER-TO-PEER SYSTEMS.

With pain comes a human trait for innovation and problem-solving. After the 2008 GFC, shared and circular economies were born. Power was given back to the people and companies were rewarded for doing so.

We started to share rooms in our houses, seats in our cars, products, services, and everything else in between. It's felt like we were coming back to the ancient wisdom of  'common-unity" that got us all here in the first place. Even in the absence of money. Ancient cultures shared wisdom, resources, food, and shelter to ensure that everyone survived together.

  1. Blockchain & Bitcoin: The worlds largest bank with no cash
  2. Uber: The worlds largest taxi company owns no vehicles
  3. Alibaba: The worlds largest retailer holds no inventory
  4. Facebook: Thee worlds largest media agency that creates no content
  5. Airbnb; The largest accommodation provider that owns no real estate.

Here are the pitch decks of these 'ideas' before they became what they are today.

6. THE BIRTH OF CIRCULAR ECONOMIES & SOCIAL IMPACT

Following this, we saw the rise of peer-to-peer platforms that enabled business, money, and resources to move more freely. It started with people and more recently expanded to include nature. Where the largest global hedgefund controlling trillions of dollars in global worth

CIRCULAR ECONOMIES 

CEO and founder Larry Fick shared something profound:

Laurence D. Fink, founder, and chief executive of the investment firm BlackRock, is going to inform business leaders that their companies need to do more than make profits — they need to contribute to society as well if they want to receive the support of BlackRock.

Mr. Fink has the clout to make this kind of demand:

His firm manages more than $6 trillion in investments making it the largest investor in the world, and he has an outsize influence on whether directors are voted on and off boards.

He wrote in a draft of the letter that companies must do more than make profits.

HERE ARE HIS 3 REQUIREMENTS TO GAIN FUNDING AND INVESTMENT

  1. “Society is demanding that companies, both public and private, serve a social purpose,”
  2. “To prosper over time, every company must not only deliver financial performance but also show how it makes a positive contribution to society.”
  3. This includes nature and the entire ecosystem that supports us all.

7. THE BIRTH OF DECENTRALISED MONEY & FINANCES

Anyone who has ever been in financial circles has probably heard of the term "Fiat money" or, more precisely, "Fiat money." Simply put, fiat currency is any legal tender derived from a government-issued currency. In modern economics, this is essentially any currency issued by the government, whether in the form of gold, silver, or any other type of currency, such as the US dollar, euro, yen, yuan, rupee, etc., and in modern economic theory, it is essentially a currency issue of a central bank or other government agency. Simply put, Fiat money is a kind of money valued purely for public policy.   Show Source Texts

The value of a fiat currency is determined by the government that issued it, and if the issuing government or central bank loses or refuses to guarantee its value, the fiat money currency will lose all its value.

If we reflect on the history above. In 1929 and 2008, we saw increasing debt levels and inflation as key indicators for the financial crisis. Today in 2020, post-pandemic we are seeing a similar face to a different name.

GLOBAL DEBT: The Covid-19 pandemic and its aftermath has pushed the global debt higher by $32 trillion in 2020 to $290.6 trillion led by government and non-financial corporate debt, and will continue to rise in 2021, said the latest release by Moody's Investor Service

INFLATION: Inflation has risen around the world, but the U.S. has seen one of the biggest increases. A Pew Research Center analysis of data from 46 nations finds that the third-quarter 2021 inflation rate was higher in most of them (39) than in the pre-pandemic third quarter of 2019.

The only difference this time is that we have new systems that may one day make these outdated, negatively geared financial systems obsolete.  In favor of zero-sum and even positively geared ones. However, we all know that the 1% who are winning in the current system owning 99% of global resources, won't let go of that amount of power and control without a fight or a solution that they can move their wealth too.

8. BLOCKCHAIN CAME FIRST, BEFORE BITCOIN

Before the birth of Bitcoin, cryptography, cryptocurrencies and even decentralized apps (DAPPS), we had to build a system and network for these projects to run on.

Blockchain, or distributed ledger technology, is a database that is consensually shared, replicated, and synchronized.

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” – Buckminster Fuller

To better understand the technical aspects of a blockchain, it is helpful to explain the concept through an example. When an individual deposits a sum of money into a banking institution, the individual trusts that the sum will be there until they decide to exchange it for goods or services. The individual trusts the bank will have an accurate record of the transaction, such as the amount, depositor, date, and time of the deposit. More broadly, society relies on central repositories, such as banks or governments, to collect, maintain, and protect the recorded actions of individuals or institutions.

Blockchain differs from centralized repositories in that it decentralizes the source of trust. An individual deposits funds into a digital wallet and the value is captured on the blockchain. If this individual purchases a digital song, the transaction is captured in the blockchain along with the change in fund level in the digital account.

The bank is not required as a trusted third party.

The trustworthy record is recorded in the blockchain shared by all the parties on the network. TRUSTED, TRANSPARENT, BALANCE (ZERO SUM) and  FAST.

Blockchain aims to build on traditional financial institutions such as banks, insurance companies, and credit card companies. This means that we will see an integration of centralized and decentralized finances for a decade or so until more efficient systems eventually take over.

9. SATOSHI NAKAMOTO & HONEST MONEY

In 2008, 'Satoshi Nakamoto' (the person, the people, the pseudonym) appeared out of the ether to establish the world’s first cryptocurrency. Then he disappeared just as abruptly. Why did this 'figure" appear in 2008 to give this to the world?

There's a lot we don't know about Satoshi Nakamoto — but does unmasking the creator of Bitcoin even matter? Some of the best inventors in time remain nameless. Why? because it was never about them or the accolades.

Self-proclaimed Bitcoin (BTC) creator Craig Wright revealed what he claims is a document that explains the origins of the Satoshi Nakamoto pseudonym.

It represents an article from a digital database of academic journals JSTOR, about a person called Tominaga Nakamoto, the "Japanese Adam Smith" who lived in Japan between 1715 and 1746. An  Important Japanese thinker during the Edo period.  Wright beelieves the Nakamoto name was selected to honor Tominaga Nakamoto, who is compared to the "father of modern economics," Adam Smith.

He also added that Nakamoto's economic ideas were part of the reason for his name choice, as

he "wrote about money and honest money and the rational nature of things."

10. BITCOIN A Peer-to-Peer Electronic Cash System

The Bitcoin white paper was the document that fired the starting gun on the cryptocurrency movement — painting the compelling vision of a peer-to-peer electronic cash system.

For the purposes of this post, just remember that Bitcoin is just a mechanism for transactions on the blockchain and that blockchain is the key innovation.

It was pseudonymously written by Satoshi Nakamoto, a cryptographic pioneer who demonstrated how digital currencies could mount a challenge to central banks. A few months later, the genesis block was mined, and Bitcoin transactions took place for the first time.

Understand how it works in more detail here.

Although the white paper was exceptionally detailed, there's one burning question that cryptocurrency enthusiasts still have, 12 years on who is Satoshi Nakamoto?

11. ETHEREUM: SMART CONTRACTS

SMART CONTRACTS & 'PRROF OF WORK'

What Ethereum intends to provide is a blockchain with a built-in fully fledged Turing-complete programming language that can be used to create "contracts" that can be used to encode arbitrary state transition functions, allowing users to create any of the systems described above, as well as many others that we have not yet imagined, simply by writing up the logic in a few lines of code.

This introductory paper was originally published in 2013 by Vitalik Buterin, the founder of Ethereum, before the project's launch in 2015. It's worth noting that Ethereum, like many community-driven, open-source software projects, has evolved since its initial inception.

12. THE FUTURE:  DEFI, DAPPS, NFTS...

To understand where this is going next, let's understand these 4 terms so that we can speak in a common language and understanding.

A quick recap before we move on. We needed to have a crash of the centralized banking system in 2008 to birth shared and circular economies. Out of that came Satoshi Nakamoto and the bitcoin whitepaper for a peer-to-peer cashless system.  Over the decade this has evolved into smart contracts thanks to ethereum, decentralized applications, NFT's and a world that seems to be unbanking itself thanks to decentralised finances as a whole

Firstly, Cryptography

Cryptography is the study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents.

The term is derived from the Greek word kryptos, which means hidden. It is closely associated to encryption, which is the act of scrambling ordinary text into what's known as ciphertext and then back again upon arrival. In addition, cryptography also covers the obfuscation of information in images using techniques such as microdots or merging. Ancient Egyptians were known to use these methods in complex hieroglyphics, and Roman Emperor Julius Caesar is credited with using one of the first modern ciphers.

When transmitting electronic data, the most common use of cryptography is to encrypt and decrypt email and other plain-text messages. The simplest method uses the symmetric or "secret key" system. Here, data is encrypted using a secret key, and then both the encoded message and secret key are sent to the recipient for decryption

Secondly, Cryptocurrency

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Thirdly, Defi

Defi is a financial application of cryptocurrencies and blockchain, designed to disrupt financial intermediaries. Also known as "open finance," it is an ecosystem in which blockchain, digital assets, and open protocols are integrated into conventional financial structures.

The big idea behind deFi is to create a decentralized financial system, where payments, trading, and transactions of value take place on a new track powered by tokens and peer-to-peer exchanges.

Defi creates a cryptocurrency that creates an alternative to the state currency - backed by fiat currencies such as the US dollar. Decentralization and convergence towards the provision of financial services in the cryptocurrency ecosystem as a way of decentralizing and decentralizing financial instruments.

The common goal is to recreate the financial services used in the traditional financial system and operate them on a transparent and trustworthy blockchain network.

Decentralized finance uses key principles of Ethereum blockchain to enhance financial security and transparency and support an integrated and standardized economic system. Instead of running a centralized infrastructure managed by central authorities, institutions, and intermediaries, decentralized finance dominates a decentralized infrastructure run by code on the decentralized infrastructure of Ethereum's blockchain. This provides a holistic model of decentralized finance, in which integrated financial platforms can be built and operated on the basis of a model of cooperation and competition.

In the simplest sense, decentralized finance is basically a decentralized alternative to the traditional financial system. More specifically, the term "decentralized finance" could refer to a movement aimed at creating a new type of financial services that are available to all and function without central authority. Decentralized financial services, or open finance, are dedicated to creating a decentralized alternative to all financial services today, including insurance, savings, and credit. Blockchain - Lending and Borrowing there are many other applications of decentralized financial services, such as peer-to-peer lending, credit cards, online banking, etc.

Fourthly, DaPPs

Decentralized applications (DApps) are now the topic of the blockchain city and are attracting interest from developers around the world. While cryptocurrencies are the first use case for blockchain, there is a whole industry of decentralized applications, so-called apps, that can be used for everything from surfing the Internet to collecting art, online shopping, online banking, and much more.

Unlike Web2 applications, Web3 applications require a blockchain that is managed by a special application called Wallet. DApps communicate with their respective blockchain networks via wallets, which act as a bridge between the blockchain ecosystem. Most have smart contracts and also have servers that process parts of the execution that do not need to be a decentralized or decentralized - chain. There are some that run on their own blockchains, but these centralized components cause a lot of problems.

An example is using brave and Metamask or Phantom.app (solana) to play in the different ecosystems on the blockchain.

Lastly, NFTS

Non-fungible token (NFT) is basically a blockchain-based cryptographic token that represents a unique asset. An N FT is a digital asset whose ownership is blockchain-based and whose value is linked to its uniqueness. A non-fungible token, or "NFT," is any type of cryptographic token on the blockchain that represents unique assets. Non-Fungible Tokens, an "NFT" is essentially a blockchain-based on cryptographic tokens or blockchain that represent a unique asset such as a bitcoin.   Show Source Texts

The NFT is stored as data and is owned by the owner of the token and not by any other person or entity such as a bank, company, or other entity.

Imagine if your property or other real-world assets were stored as an NFT or digital smart contract. Imagine how much less paperwork there would be. Imagine how easy it would be to transfer real-world assets between ourselves too.  Imagine modern artists and creators, owning the rights to their original work. Where they get to decide what the allocation of value is to use or share. Power to the people!

CALL TO ACTION

Take $10 or $100 and learn by doing, how to move it from the centralized financial system into the decentralized systems.

Buy your first cryptocurrency and see if you can use it to buy real-world assets, pau for products and even services.

SUMMARY  - CAN WE UNBANK THE WORLD?

Could you imagine a world without centralized banks?

A new report from the US Bureau of Labor Statistics (BLS) shows that in 2019, only 5.4% of Americans will be without a bank account and will not have access to a checking or savings account, which is expected to be a record low. A recent survey of more than 1,000 households in the United States found that 5.4 percent of all households were "without a bank account" by 2019, up from 6.2 percent in 2014.

The future of banking will begin in the eyes of the established neo-banks and big tech, all because technology giants are slowly making their way toward better financial services than banks and institutions. Investing in a new type of financial services provider, a "non-bank" bank, is the next big thing for the banking industry and the financial industry in general.

Would you unbank yourself?

REFERENCES

Our reference guidelines HERE

With all our REFERENCES We have done our best to reference everyone’s expert opinions, peer-reviewed science, and original thoughts, HIGHLIGHTED IN THE TEXT.  So that you can go direct to the source as you read.

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