New Horizons in Cryptography and Hardware
This week, I should have told you how the Russian sanctions disrupted the world financial systems and how a completely different structure started to be constructed, as in the previous weeks. This is because this subject is not a development that can only be covered with 2-3 articles. Even if I write for pages, there are events that are so important that they do not end, and no one has grasped them yet. Worst of all, it is the Russians themselves who understand these developments the slowest! But I wanted to take a break from this issue for two weeks and look at the events from a wider perspective and shed light on an issue that will be on our agenda from 2023. In the meantime, I've been following the developments in the world, maybe more new events will be added to the financial disruptions that have already surpassed the result of the Russia-Ukraine war in the coming weeks, and I will return to that side and continue to write about these newly formed financial systems.
I am devoting this week's article to another development that will start to become very important by the middle of next year, if not in the coming months, and will change the entire technology ecosystem. Blockchain technology is being pulled into a much wider area than it is currently in: The world of asset-backed tokens (commodity-indexed tokens) will quickly begin to enter our agenda.
Today, however, this new token, which has the potential of 10-15 times the size of the universe of cryptocurrencies, which can not exceed the value of 2 trillion dollars today, with its impact and size, as well as the commodity-indexed tokens that will replace the torn old financial system. I will put my finger on a technological development that concerns the infrastructure of the field. First of all, I would like to explain the categories of tokens in the world in two simple ways for those who do not know or do not fully understand.
This world is a very simple world from a technical point of view, I would even say extremely simple. But if you look at it from the other side, that is, from the perspective of financial and physical assets in the world, things seem too complicated. The reason for this complex perception is that while the classical world of assets developed step by step over the centuries before the blockchain, legal institutions that operate separately and independently from each other defined the universe of assets in very different ways and in a structure that makes it difficult to perceive them as simple. However, after the coexistence of blockchain and internet, that is, as a result of the revolution that we call Web3, all the assets owned by humans have now become identifiable as very simple programs. Until now, only three program templates are enough to define all asset classes. Let's see if we need a fourth program class. It doesn't seem necessary for now.
Banks, payment systems, stock exchanges, land registry offices, chambers of commerce, records of all shares of public and non-public companies, all automobile records, all insurance and reinsurance records, all financialization and capitalization systems, all but all with only three program templates can be expressed today.
To these we will soon need to include the goods that flow through the entire supply chain, food, consumer goods, commodities such as wheat and oil. All this flow will soon be migrated onto the blockchain by the end of 2023 at the latest. Of course, I am not saying that all commodities in the entire world will be moved to the blockchain; I'm just stating that it would suffice to pass at least one instance of each asset to blockchains.