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    <channel>
        <title><![CDATA[Stories by Brett Hornung on Medium]]></title>
        <description><![CDATA[Stories by Brett Hornung on Medium]]></description>
        <link>https://medium.com/@hornung.brett?source=rss-5bf31286a091------2</link>
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            <title>Stories by Brett Hornung on Medium</title>
            <link>https://medium.com/@hornung.brett?source=rss-5bf31286a091------2</link>
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        <lastBuildDate>Sun, 15 Nov 2026 14:14:47 GMT</lastBuildDate>
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        <item>
            <title><![CDATA[Shifting the Web3 Narrative]]></title>
            <link>https://medium.com/@hornung.brett/shifting-the-web3-narrative-658866afc9f9?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/658866afc9f9</guid>
            <category><![CDATA[ethereum]]></category>
            <category><![CDATA[crypto]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[defi]]></category>
            <category><![CDATA[web3]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Wed, 17 Jan 2024 12:04:51 GMT</pubDate>
            <atom:updated>2024-01-17T12:04:51.384Z</atom:updated>
            <content:encoded><![CDATA[<h4>Let’s make web3 more human.</h4><p>Web3 is confusing.</p><p>If you work in crypto/web3, there’s a small chance you don’t agree; but — <strong>the majority of the world is confused</strong>. We need to shift the narrative.</p><p>In crypto/web3/blockchain circles, people will always talk about the tech — and I think that’s what will push technological innovation forward, it’s a good thing. Conversations around scaling Ethereum, ZKPs, DIDs &amp; VCs, etc. are all <strong>incredibly important topics</strong>; however, not for everyone!</p><blockquote>As an analogy — the printing press is widely considered the most important innovation in world history. But, I don’t think everyday users cared how it worked (nor should they). Rather, they probably cared that information could now be widely spread, people could read just about anything, and people could learn. <strong>That was the human element of the innovation — that’s the value. </strong>The printing press merely was a tool (albeit a very powerful one) to provide that human value.</blockquote><p>In the bigger picture outside of our web3/crypto circles — <strong>we need to talk about the human element.</strong> What makes web3 and it’s associated technologies better to the everyday person? <em>Is it horizontal scalability? Is it tamper-evident ledgers? Is it zero-knowledge proofs?</em></p><p><strong>No. No, it’s not.</strong></p><p>Rather, it’s the value that it brings to real human beings.</p><ul><li>For the <em>migrant worker</em> — it could be fast, cheap, reliable cross-border payments back to their families. It’s not cryptocurrencies, blockchain, wallets.</li><li>For the<em> unbanked</em> — it could simply be affordable access to financial services. It’s not DeFi, stablecoins, wallets.</li><li>For the <em>everyday consumer </em>— it could be seamlessly using your favorite brand’s loyalty points for redemptions at your other favorite brands. It’s not NFTs, blockchain, wallets.</li></ul><p>This is an incredibly small subset of examples, but hopefully you get the point.<strong> Blockchain/web3/crypto are not going to save the world simply by telling someone it’s better because it’s blockchain/web3/crypto. </strong>The technology is a tool (albeit a very powerful one).</p><p>Very simply:</p><ol><li>Focus on the actual human being.</li><li>Design experiences, products, and services around human value.</li><li>Communicate the human value — not the technology.</li><li>Let the technology do what we all know it can do, but without all the noise.</li></ol><p>I believe the market has matured over the past down-market, but <em>the overall web3/crypto space still has room to improve</em>.</p><p>I’m looking forward to what products &amp; services come out in the next 12–18 months!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><p>________</p><p><strong><em>Disclaimer:</em></strong><em> the content written in this article is solely for information purposes and does not convey financial advice. It is not intended to be a recommendation on anything. Do your own research.</em></p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=658866afc9f9" width="1" height="1" alt="">]]></content:encoded>
        </item>
        <item>
            <title><![CDATA[Enter the Enterprise]]></title>
            <link>https://medium.com/@hornung.brett/enter-the-enterprise-56daec9a57c5?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/56daec9a57c5</guid>
            <category><![CDATA[cryptocurrency]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[nft]]></category>
            <category><![CDATA[technology]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Mon, 08 Jan 2024 22:04:43 GMT</pubDate>
            <atom:updated>2024-01-08T22:04:43.236Z</atom:updated>
            <content:encoded><![CDATA[<h4>Web2 organizations are building more than “tokens” in web3.</h4><p>Historically speaking, in the public blockchain space, web2 companies have not built web3-related technology products.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*RIuuz3jYfzzjpVTGfeh9mw.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@shubzweb3?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Shubham’s Web3</a> on <a href="https://unsplash.com/photos/shape-yKzECK-O9-k?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a></figcaption></figure><p><em>What do I mean by that?</em></p><p>Apple didn’t build MetaMask, Tencent Cloud didn’t build Alchemy, Goldman didn’t build Lido, Oracle didn’t build Polygon, etc.</p><p><em>Rather, web2 companies built applications leveraging these technologies:</em></p><p>Nike launched <strong>tokenized phygital shoes</strong>, Reddit launched <strong>tokenized avatars</strong>, Starbucks launched <strong>tokenized loyalty rewards</strong>.</p><p><strong>This has been the norm.</strong> However, while this is great and needed to gain mass adoption, I also think we’re seeing a fundamental shift from web2 organizations to the less sexy side of web3.</p><p>Let’s look at some <strong><em>publicly available</em></strong><em> </em><strong><em>examples</em></strong><em>:</em></p><h4>Wallet Infrastructure</h4><p>Example Web2 Companies Building Own Web3 Wallet (non-exhaustive):</p><p><strong>NTT Docomo, KDDI, SK Telecom, LINE, Telegram, Samsung, Robinhood, Rakuten, SBI Holdings</strong></p><h4>Node And/Or Staking Infrastructure</h4><p>Example Web2 Companies Building Node / Staking Services (non-exhaustive):</p><p><strong>Deutsche Telekom, STC, Swisscom, Franklin Templeton, Zodia Custody, Google Cloud, AWS, Infosys, Worldpay, Rakuten</strong></p><h4>Blockchain Infrastructure</h4><p>Example Web2 Companies Building Public Blockchains (non-exhaustive):</p><p><strong>Sony, Nubank, Line, Telegram</strong></p><p>That’s an impressive list of organizations — I’d bet, no matter where you live in the world, <em>you’ve heard of many of these companies and would NOT associate them with web3 at first glance</em>.</p><p>And, what’s more — I’m certain the publicly available examples are only a subset of the innovation below the public arena surface.</p><p>Pay attention to the trend: <em>web2 companies have the users, have the transactions, and are now building certain parts of the technology in-and-around the protocols</em>.</p><p><strong>Web2 companies are building core infrastructure. </strong>More on this in future blogs!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><p>________</p><p><strong><em>Disclaimer:</em></strong><em> the content written in this article is solely for information purposes and does not convey financial advice. It is not intended to be a recommendation on anything. Do your own research.</em></p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=56daec9a57c5" width="1" height="1" alt="">]]></content:encoded>
        </item>
        <item>
            <title><![CDATA[My Web3 Thoughts for 2024]]></title>
            <link>https://medium.com/@hornung.brett/my-web3-thoughts-for-2024-435134d76c57?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/435134d76c57</guid>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[token]]></category>
            <category><![CDATA[bitcoin]]></category>
            <category><![CDATA[crypto]]></category>
            <category><![CDATA[blockchain]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Fri, 05 Jan 2024 00:46:49 GMT</pubDate>
            <atom:updated>2024-01-05T00:46:49.506Z</atom:updated>
            <content:encoded><![CDATA[<h4>Not just another 2024 list, here’s 7 unique predictions for you!</h4><p>If you care about web3/crypto, <strong>you’re going to want to read this blog!</strong> Outside of maybe one, I believe these are<em> unique predictions</em> against the other reports shared this year.</p><p>Let’s dive right in:</p><h4>1. Crypto &amp; Enterprise Become Friends</h4><p>Often times, it’s either crypto or its the establishment. However, I believe the narrative of a more symbiotic relationship emerges in 2024.</p><p>2023 saw the likes of companies like <strong>LINE (</strong><a href="https://www.ledgerinsights.com/softbank-line-next-web3-nfts-raises-140m/"><strong>5.5M web3 users</strong></a><strong>) &amp; Flipkart (</strong><a href="https://polygon.technology/blog/flipkart-to-launch-polygon-cdk-powered-chain-to-scale-firedrops#:~:text=FireDrops%20Web3%20loyalty%20program%20has%20attracted%20over%203.3%20million%20wallets%20since%20September%20launch&amp;text=Flipkart%2C%20one%20of%20India&#39;s%20leading,its%20FireDrops%20Web3%20loyalty%20program."><strong>3.3M web3 users</strong></a><strong>) launch on-chain applications and wallets, but that was only the start</strong>. Imagine what happens when more major, multi-nationals come on-chain.</p><p>Think about this simple formula for success: <em>enterprise adoption = more users = more on-chain activity + opportunity to capture new users in crypto native applications = stronger crypto fundamentals (i.e., supply &amp; demand)</em></p><p>Crypto needs enterprise, enterprise needs crypto. I believe 2024 will be the breakout year for this complicated relationship.</p><p><em>KPI: enterprise wallet adoption numbers, enterprise on-chain volumes</em></p><h4>2. Enterprises Launch Own L2s</h4><p>If you subscribe to the belief that <strong>traditional enterprises have: the users, the transaction volume, and are moving into web3</strong> — then why not?</p><p>A simple thought exercise:</p><ul><li>Blockchain can facilitate multi-party transactions quite well. Enterprises can move relevant transactions on-chain where appropriate.</li><li>Most users don’t know what blockchain is, nor do they care. So, they get the functionality blockchain brings, without worrying about blockchain.</li><li>Where users care about blockchain and moving across networks, they can get opportunity and interoperability to do so.</li><li>Enterprises retain control over network governance (to the degree they choose), retain lost gas fees they’d pay for their own users on the main network, and potentially increase revenue through chain operations.</li></ul><p><strong>In 2023, technologies like Polygon CDK and the rollup-as-a-service ecosystem emerged to create the easy deployment of such networks</strong> — innovators like <a href="https://twitter.com/0xMarcB/status/1740803560340963405?s=20">Nubank</a> &amp; <a href="https://polygon.technology/blog/flipkart-to-launch-polygon-cdk-powered-chain-to-scale-firedrops#:~:text=FireDrops%20Web3%20loyalty%20program%20has%20attracted%20over%203.3%20million%20wallets%20since%20September%20launch&amp;text=Flipkart%2C%20one%20of%20India&#39;s%20leading,its%20FireDrops%20Web3%20loyalty%20program.">Flipkart</a> led the charge.</p><p>In 2024, as the networks mature/launch and privacy becomes a focus — I believe we will see a larger number of enterprise follow suit.</p><p><em>KPI: YoY increase in L2 launches by enterprise on Polygon CDK</em></p><h4>3. Speaking of L2s — Time to Decentralize!</h4><p>Transaction volumes are moving to L2s. However, if we take Ethereum (L1) vs. Polygon zkEVM, Optimism, Base, etc. — <strong>L2s are not decentralized like the L1</strong>. Whether its the provers, the sequencers, etc.</p><p>In 2023, any conference you went to — there was talk of decentralizing the L2s either in the protocol itself or through new middleware platforms (e.g., Espresso, Astria, etc.).</p><p><strong>There will be a move from product roadmap to implementation in 2024, as a core tenet of this space (decentralization) will need to be improved where the transaction volume goes. </strong>Along with this move, new business models will emerge for new sequencers/provers to enter the market.</p><p><em>KPI: YoY # of networks that decentralize sequencers &amp; provers</em></p><h4>4. Digital Identity Meets Crypto</h4><p>When it comes to decentralized digital identity, <strong>there’s a fundamentally different architecture than the fungible &amp; non-fungible token one we’ve come to know. </strong>These two worlds need to collide.</p><p>In off-chain decentralized digital identity, wallet providers support holding credentials, which I hold in my wallet, and there is a network of trusted issuers/verifiers. In the on-chain world, wallet providers support holding private keys, which I hold in my wallet, and reference to tokens stored on-chain, in which anyone in network can verify on-chain. <strong>When you have both in a singular architecture, it can be far more powerful for the user.</strong></p><p>In 2023, innovative regulation came out of the <a href="https://www.european-digital-identity-regulation.com/">EU</a> on digital identity, which will propel this space forward globally. Additionally, crypto-native companies like Coinbase &amp; Polygon experimented with digital identity. Slowly, but surely, the two sides will come together.</p><p>In 2024, I expect decentralized digital identity to have its breakout moment alongside crypto.</p><p><em>KPI: # of wallet providers that support both DID/VCs &amp; tokens</em></p><h4>5. Wallets Move to the Back</h4><p>Over the past few years, we’ve seen the wallet discussion in the enterprise web3 space go from:</p><ul><li>Download e.g., <em>MetaMask</em> wallet and hold your keys, to:</li><li>A wallet will be created for you in a new standalone app, to:</li><li>Use your existing app with built-in wallet for web3 features (e.g., <a href="https://beincrypto.com/southeast-asian-app-grab-polygon-web3-wallet/">Grab</a>, <a href="https://inleo.io/@fokusnow/telegram-partners-ton-web3-blockchain-with-inapp-wallet-">Telegram</a>)</li></ul><p><strong>The next logical step is that the wallet fades into the back of your existing app, where we don’t even need to say there is a wallet</strong>. Imagine going to your favorite airline or hotel brand or bank’s mobile application, and there’s just digital assets (assets on a blockchain).</p><p>The next evolution becomes: “use your existing app”.</p><p><strong>Rather than changing the user experience, it’s incorporating the technology without screaming about the technology. </strong>It’s providing users (mass amounts of users!!) functionality that blockchain enables, without them needing to know anything about blockchain. <em>Mass adoption?</em></p><p>While I believe this will emerge in 2024, it’s honestly a <em>2–3 year</em> prediction as more and more enterprises build in this space.</p><p><em>KPI: # of enterprises that launch web3 functions in native app</em></p><h4>6. AI Enters Wallets</h4><p>If you’re anywhere near Planet Earth, <strong>you know that 2023 was the year of artificial intelligence (AI).</strong></p><p>Much has been said about the relationship between AI and blockchain and how they are complimentary: content creation, development, model validation, authenticity, etc.</p><p>However, <strong>I’m most interested to see how AI improves the wallet experience. </strong>For example:</p><ul><li>I own X tokens, or possess Y credentials — the AI recommends something for me.</li><li>I want to create new token-based good to sell — the AI selects best chain and marketplace.</li><li>I have certain buying patterns and the AI automates my decisions for me.</li></ul><p>In our digital lives, we are building rich data sets — especially, as we move to this better future with digital ownership. <strong>In 2024, I’m excited to see how AI takes that growing data set and makes my life easier.</strong></p><p><em>KPI: # of wallet providers that roll-out AI within wallet</em></p><h4>7. Bitcoin Network Growth</h4><p>Okay, this one might not be as unique as the other 6, but — <strong>I think bitcoin will be the most talked-about topic in crypto/web3 in 2024</strong>.</p><p>With the alleged, impending approval of the spot bitcoin ETFs in the USA, a potentially beneficial changing interest rate environment, and the bitcoin halving —<em> there’s an incredible amount of interest in the network token</em>.</p><p>I won’t belabor this point, as far more knowledgeable bitcoin people than me can give you the details (wallet address growth, miner fee growth, ordinals, layer 2s, new functionality, etc.), <strong>but the bitcoin ecosystem is growing</strong>.</p><p><em>Full disclaimer in the footnotes below, but I do own bitcoin and this is not financial, investment nor any other advice — do your own research!</em></p><p><em>KPI: price of bitcoin, bitcoin network volume</em></p><p>At the end of the year, I’ll measure these predictions against the KPIs indicated and report back!</p><p><strong><em>Would love to hear your thoughts in the interim!</em></strong></p><p>When I set out to write this, <strong>I ended up with a list of 16 topics to evaluate for 2024, but I challenged myself to narrow it down to 7</strong>. If you’re interested in what else I’m monitoing, you can find the longer list below:</p><ul><li>Zero-Knowledge Proofs, Specifically ZK-EVM</li><li>Privacy-Preserving Mechanisms on Public Chains</li><li>Enterprises Entering the Web3 Infrastructure Space</li><li>Modular Blockchain Movement</li><li>Data Availability Platform Launches</li><li>Web2 Gaming Studios Launching Web3 Functionality</li><li>Enterprise M&amp;A of Web3 Infrastructure Startups</li><li>Stablecoins &amp; the Rise of Programmable Money for Cross Border Activity</li><li>Regulatory Pressure on the DeFi Space</li></ul><p>There’s so much happening in web3/crypto, it’s difficult to choose which to focus on! I’m glad to have this problem.</p><p>I hope you found these insightful — we’ve got a wild year ahead of us and I’m looking forward to how this space develops &amp; matures in 2024.</p><p>See you along the ride!</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*6WboiQIxkoyEx_4eRLj0tg.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@goian?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Ian Schneider</a> on <a href="https://unsplash.com/photos/person-holding-fire-cracker-shallow-focus-photography-PAykYb-8Er8?utm_content=creditCopyText&amp;utm_medium=referral&amp;utm_source=unsplash">Unsplash</a></figcaption></figure><p>________</p><p><strong><em>Disclaimer:</em></strong><em> the content written in this article is solely for information purposes and does not convey financial nor investment advice. It is not intended to be a recommendation for anything in the crypto/web3 space nor against, but rather an informational piece on some predictions I might have on the market. Even further, bitcoin is a volatile and risky asset, this is explicitly not financial nor investment advice. Additionally, I own bitcoin and am disclosing that fact to you to take into account. Again, not financial, investment, nor any other kind of advice — rather, just my thoughts. Do your own research.</em></p><p><em>In addition, all content/opinions expressed in this post are the sole views of the author alone, and do not reflect the opinions of the author’s employer, nor anyone else.</em></p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=435134d76c57" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[What is a Stablecoin?]]></title>
            <link>https://medium.com/@hornung.brett/what-is-a-stablecoin-4e31da84d1f8?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/4e31da84d1f8</guid>
            <category><![CDATA[token]]></category>
            <category><![CDATA[crypto]]></category>
            <category><![CDATA[stable-coin]]></category>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[blockchain]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Mon, 14 Aug 2023 15:12:33 GMT</pubDate>
            <atom:updated>2023-08-14T15:16:05.380Z</atom:updated>
            <content:encoded><![CDATA[<h4>Unpacking a simple, yet powerful concept.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*zbt2vZBAS0vnNSsJCmK6wA.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@giorgiotrovato?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Giorgio Trovato</a> on <a href="https://unsplash.com/photos/V_aWDjx2g20?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>Previously, <a href="https://medium.com/blockchain-biz/tokenized-money-matters-5ca28c0ae042">I covered tokenized money</a> at a high level. However, with the recent buzz about stablecoins, especially with <a href="https://www.coindesk.com/consensus-magazine/2023/08/11/paypals-stablecoin-is-no-libra-why-the-timing-feels-right/">PayPal’s announcement</a>, I thought it would be a good time to explain what a stablecoin is and why they are important.</p><p>If you know what Bitcoin is, then you understand what I mean when I say tokenized money. Unlike Bitcoin and cryptocurrency, which is basically floating according to market economics, <strong>stablecoins are a form of tokenized money that are backed by another asset class:</strong> treasuries, cash, commodities, bonds, etc.</p><p>This is important.</p><p>We learned a pretty big lesson as an industry when UST, the infamous algorithmic backed “stablecoin,” crashed. It wasn’t backed by hard assets, and once the market soured on it, we basically saw a bank run until it was no more. While the innovation is something to potentially strive for in the long-term, <strong>it’s a good reminder of the human side of technology</strong>, and general human behavior when it comes to money — this nut is yet to be cracked at scale.</p><p>Coming back to stablecoins backed by assets, there are three archetypes emerging:</p><ul><li><strong>Fiat-backed stablecoins:</strong> majority of popular ones are backed by the US dollar (cash, short-term treasuries, etc.)</li><li><strong>Crypto-backed stablecoins:</strong> although not the most popular among majors, this is when you back the stablecoin with other cryptocurrency (e.g., MakerDAO model)</li><li><strong>Commodity-backed stablecoins: </strong>niche use cases are popping around grain-backed, gold-backed, etc. type stablecoins</li></ul><p>The important thing is that there are assets backing up this digital money. The assets that back this up is how this term got it’s name. <em>Stable</em>. <strong>If you have an equal backing, theoretically, the asset should be stable</strong>.</p><p>Now, you might be asking yourself — okay…, but why wouldn’t I just use the dollar I have versus this digital money?</p><p><strong>Tokenized money is simply more extendible:</strong></p><ul><li>You can acquire/hold it without a bank account</li><li>You can use it anywhere, 24/7</li><li>You can transfer it for next to nothing</li><li>You can be rewarded for holding it</li><li>You can build products and services off-the-back of you owning it</li><li>You can’t have it taken away from you (<em>depending on the stablecoin and its governance</em>)</li></ul><p>The combination of these <strong>make it attractive for cross-border payment/money transfer activity, facilitating trading, banking the unbanked, serving as a safe haven during crypto volatility,</strong> etc.</p><blockquote>If you’re interested in stablecoins, take a look at the existing players like USDT, USDC, and DAI. Or, take a look at some of the newer entrants like FDUSD and PYUSD to learn how these roll out.</blockquote><p>I believe we are just scratching the surface in the <strong>stablecoin wars.</strong> Tether (USDT) raked in $850 million in profits in Q2 2023 alone, while Circle (USDC) pulled in $779 million in the first two quarters. Stablecoin operator revenue is growing.</p><p>In addition, regulations were just released in Japan, and more to potentially follow in Hong Kong, UAE, USA, and more.</p><p>Keep an eye on highly regulated institutions and their emergence into this space as this world potentially becomes an easier place to navigate.</p><p>________</p><p><strong><em>Disclaimer:</em></strong><em> the content written in this article is solely for information purposes and does not convey financial advice. It is not intended to be a recommendation for stablecoins nor against, but rather an informational piece on the current state of stablecoins. Do your own research.</em></p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=4e31da84d1f8" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[Bringing Assets On-Chain]]></title>
            <link>https://medium.com/@hornung.brett/bringing-assets-on-chain-b539a1be6eb3?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/b539a1be6eb3</guid>
            <category><![CDATA[crypto]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[token-economy]]></category>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[token]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Sat, 12 Aug 2023 02:48:31 GMT</pubDate>
            <atom:updated>2023-08-12T02:48:31.700Z</atom:updated>
            <content:encoded><![CDATA[<h4>Asset manager, Franklin Templeton, tokenized a money market fund, bringing it on-chain.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*sov4aUgT4MpKYpHMmWADiw.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@shubzweb3?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Shubham’s Web3</a> on <a href="https://unsplash.com/photos/TI0VbTrVbk4?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>In a <a href="https://medium.com/@hornung.brett/real-world-asset-tokenization-98873ee43bc7">previous post</a>, I wrote about how real world asset tokenization is taking the world by storm.</p><p>As part of my Friday series where I bring these concepts to life, I want to talk about a specific RWA example. For today’s piece, <strong>let’s look at how Franklin Templeton brought a money market fund on-chain</strong>.</p><p>Here’s what I’ve been able to find from publicly available sources:</p><ul><li>Launched the “Franklin OnChain US Government Money Fund” (FOBXX)</li><li>Registered the investment product in the United States</li><li>Launched the Benji Investments app for users to buy and sell tokenized shares — one share is equal to one BENJI token</li><li>Digital asset wallet is provided by Benji app</li><li>Tokenized shares are deployed on both Stellar and Polygon</li><li>As of April 2023, the fund saw $270 million assets under management</li></ul><p>This is a fantastic example of bringing real world assets on-chain. It’s hitting on all the promises of RWA: accessibility, liquidity, tradability, etc.</p><p><em>Why does this matter?</em></p><p>A trillion dollar plus asset manager has successfully launched a US-registered investment product, based on a public blockchain. <strong>That’s big.</strong></p><p>It has sent and continues to send major signals to other players that there is something here and they need to actively be exploring. <strong>Arguably, this is one of the those use cases that could a watershed moment in the implementation and adoption of real world assets on-chain.</strong></p><p>Overall, a fascinating example and one I’m sure we’ll be seeing more of!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=b539a1be6eb3" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[Real World Asset Tokenization]]></title>
            <link>https://medium.com/@hornung.brett/real-world-asset-tokenization-98873ee43bc7?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/98873ee43bc7</guid>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[token]]></category>
            <category><![CDATA[ethereum]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[cryptocurrency]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Wed, 09 Aug 2023 02:10:30 GMT</pubDate>
            <atom:updated>2023-08-09T02:10:30.099Z</atom:updated>
            <content:encoded><![CDATA[<h4>Bringing the physical world on-chain to improve efficiency, accessibility, and liquidity.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*p8SQnx6_rOEKNx3iWiKcJw.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@theshubhamdhage?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Shubham Dhage</a> on <a href="https://unsplash.com/photos/mT7YO4_s6-g?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>Real world asset (RWA) tokenization is all the rage lately. But, what is RWA and why are people talking about it?</p><p>Let me help you break it down simply.</p><p>In past articles, we’ve covered <strong>what a blockchain-based token is — basically, a digital record of ownership</strong>. We’ve got that covered. So, what is meant by “real world asset”?</p><p>Real world assets are just that — really anything that exists in the real world that you want to bring on-chain:</p><ul><li>Art</li><li>Real Estate</li><li>Gold</li><li>Diamonds</li><li>Carbon Credits</li><li>Mutual Funds</li><li>Etc.</li></ul><p>The list goes on and on — it’s only limited by your imagination! <em>But just to clarify, not everything needs to go on-chain — you still need appropriate product-market fit and a clear reason why to put something on chain.</em></p><p>Coming back to the topic at-hand — <strong>real world asset tokenization then refers bringing these off-chain assets on-chain by recording their ownership through a shared digital ledger.</strong></p><p>Great. What’s that do for you?</p><p>Let’s take two scenarios to give you an idea:</p><ul><li>You don’t have $5 million USD laying around to buy a Banksy? Okay, we will tokenize the painting and allow you to buy smaller shares (fractions) so that you have access to that real world asset.</li><li>OR, you don’t know where your diamond came from but want to see its provenance? Okay, we will tokenize a digital representation of your physical diamond and track it throughout the supply chain.</li></ul><p>With those scenarios in-mind, you can see that <strong>bringing real world assets on-chain brings a number of benefits</strong>:</p><ul><li><strong>Accessibility:</strong> through fractionalization (smaller shares), more users can gain access to different asset classes</li><li><strong>Liquidity:</strong> with more users exposed to asset classes, theoretically liquidity will improve</li><li><strong>Tradability:</strong> blockchain-based mechanisms improve the buying/selling of assets through more efficient exchange operations</li><li><strong>Transparency:</strong> tying the physical to the digital in an unbreakable way enables users to be confident in their real world purchases</li></ul><p>All of that sounds pretty great, right? <strong>That’s why we are seeing an explosion in this space. </strong>The market has seen web3-native platforms like Securitize, Centrifuge, Mantra, Tokeny, Propy, ACX and many more build solutions for real world asset tokenization, while it’s also seen more traditional players like JPMorgan and Franklin Templeton enter the space.</p><p>Right now, the RWA trend is being led by the investment use cases for these varied asset classes, rather than the asset provenance/verification type use cases. However, both are potentially valuable.</p><p><strong>There is no denying that RWA presents major opportunities for a variety of asset classes.</strong></p><p>However, <strong>these opportunities must be balanced against the risks of today AND tomorrow</strong>. Some risks to keep in-mind:</p><ul><li><strong>Regulatory</strong> — across different jurisdictions, it’s still unclear what is and what is not a security</li><li><strong>Legal</strong> — does the technology implementation actually reflect the legal framework and if not, is the legal framework holding back the potential of the technology? There are also general legal liability concerns.</li><li><strong>Business </strong>— what is the impact on your existing business and your customers — what’s the user experience you’re trying to bring them and do they want it?</li><li><strong>Technical</strong> — ensuring your technology choice is mature and secure is crucial in this emerging space</li></ul><p>These are just some of the risks — it’ll all depend on your specific real world asset and on-chain use case for that asset. With these in-mind, you can work on capitalizing on the opportunities that RWA presents.</p><p>Real world asset tokenization is an exciting (and wide!) area within web3. Historically, crypto has been about crypto-native tokens. The “real” in real world asset tokenization is truly about connecting this technology with the “real” economy. This is a topic you should keep your eye on!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=98873ee43bc7" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[Web3 Podcasts]]></title>
            <link>https://medium.com/@hornung.brett/web3-podcasts-ffb27c8b98f2?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/ffb27c8b98f2</guid>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[podcast]]></category>
            <category><![CDATA[technology]]></category>
            <category><![CDATA[nft]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Mon, 07 Aug 2023 00:04:43 GMT</pubDate>
            <atom:updated>2023-08-07T00:04:43.904Z</atom:updated>
            <content:encoded><![CDATA[<h4>Here’s what I’m listening to in the space.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*NLP508fckJo4Ely30meCSQ.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@jukkaaalho?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Jukka Aalho</a> on <a href="https://unsplash.com/photos/_t9c-kmMjl8?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>People often ask me: “Brett, where can I learn more about web3?”</p><p>In a couple of upcoming blog posts, I’m going to share some of my favorite web3 learning materials that I utilize every week. For today’s post, let’s look at some of my favorite web3 podcasts.</p><p>Here’s a <em>non-exhaustive</em> infographic I’ve pulled together of the web3 podcast landscape to choose from:</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*h5xxSSlXO5MeBIROXcnVjQ.png" /></figure><p>Lots of great options to choose from that it’s actually a pretty daunting task to find your favorite web3 podcasts. If that’s what you’re thinking, I agree with ya there. <strong>Tbh, it’s all about finding what resonates with you!</strong></p><p>So, what resonates with me?</p><p>There are two podcasts that I try to listen to pretty religiously as part of my overall learning:</p><h4>Web3 Breakdowns:</h4><p><a href="https://open.spotify.com/show/4zQbeLbLgqKEyn7e2sKzez">Web3 Breakdowns</a> is an interview-based podcast where they bring on anyone from web3-natives to traditional enterprise across the entire spectrum of the token economy.</p><ul><li>Episodes range in length, but typically about 45 minutes</li><li>Episode released weekly on Fridays</li><li>Each quarter they do a market recap that is very solid</li></ul><h4>Web3 Academy:</h4><p><a href="https://open.spotify.com/show/4kjIjZ7gBNgbYasqLQJEEy">Web3 Academy</a> runs a number of different podcast formats under this show, from interviews to updates to rollups and short clips. I think they do a great job of simply explaining things and making web3 a bit more real.</p><ul><li>Episodes range in length, depending on format — but the regular show is typically around an hour</li><li>Episodes are released every day or two</li><li>Each week they do a “Rollup” episode that is a good catch-all</li></ul><p>Both of these are fantastic for what I’m looking for in my podcasts. If you like my blogs and my content, I think you’ll like them too!</p><p>I definitely listen to many of the others I included on that list, especially when an interesting guest comes on or there’s a specific topic I’m researching. In addition, <strong>I’ve been a guest on a few of these including </strong><a href="https://open.spotify.com/episode/1XPFtKREUbqA6YGWLs0c7u?si=yvU9QBdsSrS4FLTQnBmmFw&amp;nd=1"><strong>Now &amp; Next</strong></a><strong>, </strong><a href="https://open.spotify.com/episode/0dFW5woEyNauLTVPuVXmzB?si=uck9hz95TjCsg6aFKy-_kA&amp;nd=1"><strong>TEP</strong></a><strong>, and </strong><a href="https://open.spotify.com/episode/0xbS6T9kxtCfOCySTQLFdo"><strong>OOO A Web3 Marketing Podcast</strong></a> (thanks again for having me!).</p><p>While I do listen to a wide variety of podcasts, the two I mentioned above are definitely my most consistent pods.</p><p><strong>What did I miss? What are you listening to?</strong></p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=ffb27c8b98f2" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[An Enterprise Node Validator?]]></title>
            <link>https://medium.com/@hornung.brett/an-enterprise-node-validator-c8541dc3b35b?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/c8541dc3b35b</guid>
            <category><![CDATA[crypto]]></category>
            <category><![CDATA[cryptocurrency]]></category>
            <category><![CDATA[token]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[web3]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Fri, 04 Aug 2023 01:34:08 GMT</pubDate>
            <atom:updated>2023-08-04T01:34:08.687Z</atom:updated>
            <content:encoded><![CDATA[<h4>One of the largest telecommunications firms in the world, Deutsche Telekom, is running validating nodes. Why?</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*rsrODlczUDGNkWPex0O_cw.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@guerrillabuzz?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">GuerrillaBuzz</a> on <a href="https://unsplash.com/photos/EqS6OrIOaTs?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>To get a quick refresher on what a blockchain node validator is, head over the my <a href="https://medium.com/@hornung.brett/blockchains-need-this-42ecbd74e07e">previous blog post</a> on this essential blockchain player.</p><p>For today’s post, I want to bring this concept to life with a traditional enterprise player entering this space.</p><p>Deutsche Telekom (DT), a German telecommunications firm, is actively investing into web3 and the underlying infrastructure of blockchain. Per reports, <strong>the firm is already performing node validation services on several blockchains: Q, Flow, Celo, Chainlink, and Ethereum</strong>.</p><p>Just last month, <strong>the telco announced that they would also be participating in the Polygon network</strong>.</p><p>Here’s what I’ve found from publicly available sources:</p><ul><li>Will become 1 of 100 validators for Polygon Supernets solution (<a href="https://cointelegraph.com/news/deutsche-telekom-becomes-polygon-validator">source</a>)</li><li>DT does not stake their own crypto assets, but instead relies on others and takes a percentage of the rewards (<a href="https://cryptonews.net/news/blokcheyn/21120210/">source</a>)</li><li>DT’s Blockchain Solutions Center lead, Dirk Röde, is quoted saying that the firm “is also making significant commitments to expand its presence and reliability as an infrastructure provider in the web3 domain” (<a href="https://cointelegraph.com/news/deutsche-telekom-becomes-polygon-validator">source</a>)</li></ul><p>There’s not much other public data that I’ve come across, but those three points are pretty impactful.</p><p>Now, you might be wondering — why is this so significant? Try googling how many traditional enterprises are running validating nodes on public blockchain networks. You’ll find just about no others are publicly.</p><p><strong>It’s a big indication to the market, especially to traditional infrastructure providers, that there is potentially something here.</strong></p><p>Whether it’s revenue from your own staked crypto-assets, it’s the margin you can charge for staking others’ crypto-assets, it’s the data insights you get from having a full copy of the ledger, it’s simply a marketing ploy, or something else — <strong>there is a potential financial and brand value for traditional enterprise and brands.</strong></p><p>It goes without saying that there are certainly legal, regulatory, business, technical, operational and other risks to take into account, but there might just be something here. Seemingly, Deutsche Telekom has figured it out!</p><p>Very interesting real life example — I’ll be following developments in this area closely!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=c8541dc3b35b" width="1" height="1" alt="">]]></content:encoded>
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            <title><![CDATA[APAC Web3: Where to Start]]></title>
            <link>https://medium.com/@hornung.brett/apac-web3-where-to-start-ac0545ff349c?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/ac0545ff349c</guid>
            <category><![CDATA[ethereum]]></category>
            <category><![CDATA[nft]]></category>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[cryptocurrency]]></category>
            <category><![CDATA[blockchain]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Wed, 02 Aug 2023 00:40:58 GMT</pubDate>
            <atom:updated>2023-08-02T00:40:58.878Z</atom:updated>
            <content:encoded><![CDATA[<h4>Trying to figure out web3 in Asia? Here are two suggestions to get started and launch your connections in the region.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*5Cvqz8J1cXOcBK5lnozXOw.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@headwayio?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Headway</a> on <a href="https://unsplash.com/photos/F2KRf_QfCqw?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>Over the past few months, with the shift of focus in the web3 world from the United States to elsewhere, I’ve had numerous people reach out to me about getting their network going in Asia.</p><p>If you find yourself in that camp or are just generally curious about where to spend your time, this post is for you!</p><p>Now, I know that people have opposing opinions on whether conferences are actually beneficial or not. <strong>Do you need to go to every conference? Probably not. Should you go to a few key ones? I think you should.</strong></p><p>So then — what are the conferences you should be going to in APAC? At the very least, I believe there are two:</p><h4>Korea Blockchain Week (KBW)</h4><p>Bringing together some of the brightest minds in the space, from both Asia and abroad, <a href="https://koreablockchainweek.com/">KBW</a> is one of my two recommendations.</p><p>This year’s speakers include leaders from Circle, BitGo, Polygon, Chainlink, Animoca Brands, NEAR, Aptos, Immutable, Ledger, a16z, Magic, Yuga Labs, Fireblocks, and many more.</p><p>Happening in the first week of September in Seoul, both the conference and the many side events will be can’t miss action in the world of web3.</p><h4>TOKEN2049</h4><p>Similarly, TOKEN2049 brings an equally star-studded cast from both Asia and abroad. This is my second recommendation.</p><p>This year’s speakers include leaders from OKX, Ripple, Animoca Brands, Circle, Polygon, Gemini, Axie Infinity, Uniswap, Nansen, Binance, Consensys, Yuga Labs, and many more. In addition, there are leaders from non-web3-native companies like Franklin Templeton, CME Group, and Goldman Sachs.</p><p>Happening in the second week of September in Singapore, this is historically the premier event of Asia. It also falls the same week of the F1 in Singapore and is quite the spectacle.</p><p>There are a plethora of great events (WebX Tokyo, CoinFest Bali, etc.) across Asia Pacific — it’s a huge area to cover with awesome conferences in Hong Kong, Japan, Vietnam, Australia, etc. However, if you had to focus on only two — I would recommend these two for now.</p><p><strong>Come check out the new region for web3</strong> — make a trip out of it and stop over in Hong Kong in between!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=ac0545ff349c" width="1" height="1" alt="">]]></content:encoded>
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        <item>
            <title><![CDATA[Blockchains Need This]]></title>
            <link>https://medium.com/@hornung.brett/blockchains-need-this-42ecbd74e07e?source=rss-5bf31286a091------2</link>
            <guid isPermaLink="false">https://medium.com/p/42ecbd74e07e</guid>
            <category><![CDATA[web3]]></category>
            <category><![CDATA[blockchain]]></category>
            <category><![CDATA[node]]></category>
            <category><![CDATA[tokenization]]></category>
            <category><![CDATA[crypto]]></category>
            <dc:creator><![CDATA[Brett Hornung]]></dc:creator>
            <pubDate>Mon, 31 Jul 2023 00:35:57 GMT</pubDate>
            <atom:updated>2023-07-31T00:35:57.182Z</atom:updated>
            <content:encoded><![CDATA[<h4>Let’s talk about a core element of blockchains: node validators.</h4><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*IolY4hRAilaH_ITpWOD2Gg.jpeg" /><figcaption>Photo by <a href="https://unsplash.com/@theshubhamdhage?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Shubham Dhage</a> on <a href="https://unsplash.com/photos/KD_JkwZEQ5k?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a></figcaption></figure><p>If you’ve ever paid with cryptocurrency, you probably have heard someone tell you that “<em>the blockchain approves the transaction</em>”.</p><p>What does that mean?</p><p>Think about today — you use your Visa credit card at the store, it takes a few seconds, and then the transaction is <strong>confirmed by Visa</strong> and you now own the physical good.</p><p>Take that analogy and apply it to blockchain — you use your cryptocurrency at the store, it takes a few seconds, and then the transaction is <strong>confirmed by “the blockchain”</strong> and you now own the physical good.</p><p>In the first scenario, you have a centralized entity using their own systems to validate the transaction. In the second scenario, you have a decentralized network somehow validating the transaction. <em>This is what I want to talk about today.</em></p><p>The process whereby the <em>decentralized network is somehow validating the transaction </em>is part of <strong>blockchain consensus</strong> <strong>and is handled by node validators</strong>.</p><p>Blockchains are distributed networks with many unknown parties. Whereby Visa makes its own “decisions”, a blockchain network requires many disparate parties to agree on a “decision”. <strong>Consensus is the process by which these different parties agree and confirm transactions.</strong></p><p>As a side note, <em>there is a wide variety of consensus mechanisms</em> (proof-of-work, proof-of-stake, proof-of-authority, etc.), but that’s not the point of today’s article — we’ll leave that for a future article.</p><p>Going back to the analogy, in this blockchain consensus process:</p><ul><li>A node validator<strong> </strong>is algorithmically chosen to perform some type of automated computation</li><li>The node validator checks the specifics of the transaction and ensures all rules and formatting is followed</li><li>The node validator then validates the transaction</li><li>Once they validate, the other validating nodes on the network need to verify the original validation</li><li>If all is successful, the transaction is recorded on the blockchain</li></ul><p>You may be thinking — that seems like a lot!</p><p>However, it’s really not — it’s incredibly automated and most blockchain networks are comparable in speed to how fast Visa confirms your transaction. It’s quite a beautiful process, really.</p><p>You, as the end user, honestly will never see this process, and that’s okay. Yet, I think it’s an important process to understand as it is at the core of what makes blockchains work and serve as trusted distributed networks. <strong>Node validators are one of, if not the most, important participants in a blockchain network.</strong></p><p>In future articles, I’ll cover <em>how these validators are actually run, some of the major companies behind them, and why you might want to run one yourself.</em></p><p>Hope this was a nice refresher on the core principles of blockchain!</p><p>________</p><p>If you liked this article, consider subscribing to my newsletter <a href="https://web3simplified.ck.page/subscribe">web3, simplified</a>. You’ll get my top web3 articles and insights direct to your inbox every Tuesday!</p><p>________</p><p>Interested in continuing the conversation? Connect with me on <a href="https://twitter.com/bretthornung">Twitter</a> or <a href="https://www.linkedin.com/in/bretthornung/">Linkedin</a>.</p><img src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=42ecbd74e07e" width="1" height="1" alt="">]]></content:encoded>
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