Me On IT
Published on

Buy And Sell Anything!

Authors

Cryptocurrencies have so far always failed because they have not become an everyday means of payment. This is particularly evident with Bitcoin. It is essentially defined and valued by its worth on cryptocurrency exchanges. The value in fiat currency!

The situation is similar with Ethereum. There, although a parallel world has emerged through Tokens, NFTs, and decentralized exchanges ("DEX"), it has little to do with the everyday life of most people to this day. Cash, credit card, bank card, these are the payment methods of the present. It does not seem like this will change anytime soon.

Several reasons for this state of affairs are obvious:

  • The technical prerequisites are not yet 100 percent in place
  • There is no public acceptance for a non-state payment method
  • States prevent the spread of cryptocurrencies, as they would question their claim to power
  • Any new cryptocurrency aiming to become a global payment method would immediately become an object of speculation and a tool for criminals
  • Such a cryptocurrency would be illegal in many countries
  • Trading on cryptocurrency exchanges would tie such a currency to fiat currencies. In the end, it would be tied to fiat currency and could not survive without it.

All this leads to cryptocurrencies not being able to be used as a medium of exchange for goods and services.

So, let's ask ourselves the question, how could this be changed? What conditions must exist for a cryptocurrency to become money?

I believe the following conditions are necessary:

  • The new cryptocurrency (let's call it WRT) must not be traded on exchanges, whether they are central or decentralized.
  • WRT must not be issued by a state, but must be controlled by an independent entity that has international welfare in mind and does not represent the interest of a single state
  • Transaction fees (gas costs) must be very low or zero
  • The technical infrastructure must be advanced enough everywhere in the world that WRT can be used without technical knowledge and without special training.

Let's narrow down this question to make it manageable! -- How should an ERC20-Token be developed and managed in Solidity to meet as many of the above requirements as possible?

It is clear that the answer to this question can only be a utopia even today. However, it is a utopia that has existed since Bitcoin -- and since its predecessors. Many people dream of it, and no one knows if and how this utopia can ever become reality.

But that's exactly what makes it exciting! So far, I have come up with the following list (Some points on the list are ideas, possibilities, options -- not a plan set in stone):

  • Use of OpenZeppelin, a proven framework for smart contracts on Ethereum, that offers security and easy maintenance.
  • Monitoring of Transfers: Implementation of mechanisms to monitor and approve large transfers
  • Choice of a Second-Layer-Chain: Use of a Second-Layer-Chain or Polygon.
  • Legal Compliance: Compliance with local and international regulations.
  • Market Control: Interventions in crypto markets to push the price down and thus prevent or at least restrict trading. This is already the approach used by states through their national banks to keep their currency rates stable. Legal market manipulation today -- legal market manipulation tomorrow!

I think that the issuance of such a currency is a mammoth task like no other. Only with a certain amount of hubris could I make a start. What would need to be done? How should such a token be implemented to actually get closer to the goal? Can such a token actually become a medium of exchange for goods and services?