The Open Finance Protocol Ecosystem

What? Where? Why? And what’s on the horizin for Ethereum.

Ethereum… Open Finance Protocols?

Ethereum: The world’s leading software enabled blockchain.

Open Finance Protocols: Transmutation of value with Internet native systems: Banking, Investing. Loaning, Speculating and Public Goods

Decentralized Finance: Ethereum native dApps experimenting with financial tooling smart contract architecture — e.x. flashLoans by Aave to streamingMoney(0x) by Sablier and stableCoins by MakerDAO.

Internet Native Programmable Money

Ethereum is a public blockchain. The world’s leading public blockchain by most active developers and highest number of Decentralized Finance experiments. Smart contracts is the canonical term for cryptographically enforced software running on public blockchain infrastructure.

Collections of feature specific smart contracts are “ decentralized finance”.

Smart contracts enable experiments like real-time loans and value streaming for emerging digital currencies like ETH and DAI.

A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

Software Money. More Cryptography. Less Bankers.

Digital currency will democratize finance.

The intersection of Digital Currency and Internet Culture is Open Finance.

Current fiat systems are not a completely optimized, socially adaptive means for wealth management. The Open Finance Protocol will include the four essentials: Banking, Investing. Loaning, Speculating… but also include a fifth component. Public Goods.

New value centric economies will be crafted using the Open Finance Protocol.

Internet Money Right Now. What’s Happening?

Decentralized Finance experiments are here. Ethereum is powering them.

Just recently 1 Billion Dollars ($1,000,000,000) of cryptocurrency was “locked up” using decentralized finance protocols. Another 1 Million ($1,000,000) is now collectively earning interest at PoolTogether, and digital currency is even growing new trees at rTree powered by rDAI.

The movement is real. The experiments are happening.

Welcome to the future - It’s 🦄 fabulous!

The 5 Future Open Finance Protocols

The Open Finance Protocol will include 5 distinct classification categories. Each one a DNA Set in the future Ethereum Ecosystem Taxonomy Catalog™

Transmuting value in digital ecosystems.

Banking

Investing

Loaning

Speculating

Public Goods

The 5 Open Finance Protocols will enable mainstream Ξ Digital Currency

Simple. Right?

The 4 traditional financial protocols (Banking, Investing, Loaning and Speculating) are great. The addition of Public Goods will enable new, more value aligned digital communities, unlike anything we’ve seen before.

The intersection of the 5 Core Open Finance Protocols will set the stage for the future Internet Native Financial Systems. Enabling new ways to manage money, resources and value, both as an individuals and communities.

Hot Take: In the “financial instruments world” public goods is a “separate” protocol (Government) for managing individual, community, state and nation economic vitality. Bad architecture design in my opinion.

Better integration is required. More robust Commons. Better business.

How Open Finance Impacts the Game Map

Two game theory meta optimal strategies will likely emerge in the “Ecosystem Era” epoch powered by the Open Finance Protocols.

A contraction in the engineering and maintenance of high-risk core protocol components (Banking, Investing. Loaning, Speculating, Public Goods) and an expansion of Web3 product development.