Looking back at the financial history of mankind, the world’s first stock was born in the early 17th century, which greatly promoted the modern development of traditional finance. However, people at the time were generally full of worried about the emerging matter of stocks.
At the moment, the fourth industrial revolution represented by blockchain technology has swept across. The technical application of blockchain and the token economy have brought business and finance into a new era of digital assets. With vigorous development, various capital giants quickly flock to the blockchain industry, and blockchain is gradually becoming a new engine of global economic and social development.
The global digital economy explosion
Since 2021, under the combined influence of multiple factors, global encrypted digital assets have ushered in explosive growth, and the industrial ecology surrounding encrypted digital assets has also undergone tremendous changes, especially the price of several major encrypted digital currencies has risen sharply, and the market value of the entire market Soaring: On January 1, 2020, it was less than 200 billion U.S. dollars, but by December 31, it had reached 76 million U.S. dollars, which has exceeded 2 trillion U.S. dollars today.
There are multiple factors that can influence a surge in such a short period of time.
1. The rapid rise of decentralized financial protocols (DeFi) is an internal factor driving the explosion of encrypted digital assets.
2. The continuous entry and purchase of traditional financial investment institutions has led to the continuous expansion of encrypted digital asset investment channels and a wider audience.
3. The attitudes of major countries in the world towards cryptocurrencies have become more relaxed, and the overall trend has become more open, bringing a broader external environment to encrypted digital assets.
Specifically, we will analyze and study the reasons for this global digital asset boom from three aspects.
Efforts Ethernet Square
If blockchain network has the most user engagement and project activity at the moment, it is none other than Ether. Ethereum is currently the most active public chain network, and its average daily transaction volume has increased by 90% in 2020. About 10.7 million smart contracts were created, an increase of 55% from 2019. From the perspective of the ecological landscape, financial DApp is the fastest growing and most important application type of Ethereum in 2020. The proportion of financial-related products such as exchanges, security services, and wallet services has also increased significantly.
With the official launch of the ETH2.0 beacon chain in December 2020, the prologue of Ethereum 2.0 will begin. In terms of price trends, Ethereum rose steadily at the end of 2020, from $500 at the end of the year to $4,000 today, an increase of nearly 778.55%. The internal reason for the violent rise is that Ethereum 2.0 is an important stage in the development of Ethereum, which will fundamentally change the consensus algorithm (PoW→PoS), introduce a sharding mechanism and update the execution environment. The implementation of Ethereum 2.0 will help solve the problems of scalability and transaction efficiency of the Ethereum network that have been criticized, and will help improve the usability of Ethereum and enrich the application ecological landscape.
The last straw that overwhelms traditional finance
The emergence of DeFi has made the traditional financial order, which was already precarious, more fragile, but it has also brought new forces to reshape the financial world. DeFi refers to a decentralized financial agreement (product/service) built through smart contracts based on public chains such as Ethereum. This type of financial activities does not rely on centralized financial institutions, and has the characteristics of no access, combinability, globalization, openness and transparency. Since the boom in late 2020, a relatively complete ecosystem has now been formed.
The value of DeFi locked positions surged from US$850 million to US$17.56 billion in 2020, an increase of 1965.88%. The application ecology involves lending, stablecoins, decentralized exchanges (DEX), derivatives, insurance, etc. Liquid mining is one of the main reasons for the growth of DeFi in 2020. Liquidity mining refers to the process of obtaining benefits (governance tokens, transaction fees, etc.) by providing liquidity for DeFi projects.
Although DeFi still has security, compliance and other challenges, DeFi has significant advantages in reducing intermediate links in transactions, lowering financial access barriers, and improving business transparency. As a new technology-driven financial model, DeFi open, credible, and fair business philosophy and service awareness to protect user data are also affecting and changing the traditional financial market.
Collective admission of capital
Grayscale Capital, new energy automobile giant Tesla and other traditional companies/institutions have purchased major encrypted digital assets as an important asset allocation, which has improved the social awareness of digital assets; such as Grayscale Assets ,PayPal, Robinhood, Goldman Sachs and Other well-known financial institutions have successively launched encrypted digital assets and derivatives trading services, which greatly reduced the investment threshold of digital assets, improved the convenience of ordinary investors to participate in digital asset investment, and strengthened the connection between the digital asset market and the traditional financial market.
Under the influence of the above factors, the crypto market is facing a major transformation, and in this process, the trading platform has played a vital role. From traditional centralized exchanges to decentralized exchanges represented by Uniswap, the concept of decentralization in the blockchain continues to penetrate deep into the industry, but traders will still face losses, and normal users still cannot catch up. Fortune train, the deep-seated reason is that different trading concepts and strategies ultimately lead to different investment profits and losses. TruePnL solved this main issue.
True PnL allows intelligence to give trading strategies
True PnL has created advanced trading robots that follow technical analysis and trading logic, test the performance of each project token in the past, adjust the parameters of current market conditions, and completely replace users to control the execution of their market transactions.
The operating system of True PnL encourages users to disclose and share their trading performance. The public rating system created by an independent algorithm will help other users freely choose the trading strategies of the best traders in the current system rankings and bring them together with investors. If investors want to share their trading information, they only need to connect to their trading API.
In the process of trading, API is very important for displaying real information and authorizing transaction execution in algorithmic trading. The API connection provided by True PNL is absolutely secure for the accounts of both parties to the transaction. The emergence of TruePnL is expected to end this historical problem and usher in a new era of finance.