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What will make Cardano more interesting to people?

Published 24.4.2023

The more blockchain networks are ready for mass adoption, the more community members will ask how to help projects get more people interested in and using them. People don't care about technological details or decentralization. Even the majority of the population doesn't think that fiat money is a problem that needs to be solved through cryptocurrencies or that replacing fiat money with cryptocurrencies will solve a country's specific problems. How to present Cardano, which is one of many other projects? From our point of view, it is time to show people how to solve specific problems and convince them of the benefits of moving to the blockchain. Within a few years, blockchain technology will be ready for mass adoption and disruption in many industries. The existence of technology does not necessarily mean that anyone will use it. The hardest step for Cardano will be to break into a real business. This essentially means disrupting current services and replacing or integrating with server-based applications. For this to happen, the people must demand it and the current gatekeepers must agree with the change. It makes sense to convince ordinary people of the opportunities Cardano offers, but alongside that, it is important to debate with businesses and governments.

TLDR

DeFi is the best marketing for decentralization as it creates an alternative to existing financial services. Adoption by states and business is also important. Cardano has been adopted by the government in Ethiopia to build a decentralized identity and by Fortune 500 company Dish. Working use cases is also great marketing. Definitely better for the mass population than boring explanations of technological details.

The mass population doesn't care that Satoshi solved the double-spend problem

People don't care about decentralization, yet they need to understand its benefits.

Satoshi Nakamoto solved the double spending problem, essentially creating a digitally valuable resource that people can own and exchange with each other without having to trust a third party. Thanks to Satoshi's invention, it is possible to create a unique digital source that cannot be copied. We know these resources as coins and tokens.

Although it's a relatively big technological breakthrough, Satoshi has solved a problem that nobody was looking for a solution to. At the time of Bitcoin's inception, people had money and functioning institutions. Although the economic crisis has weakened people's trust in institutions, it is still very strong. People were not ready to replace trust in governments and money with an unknown technological solution. Today, 13 years into Bitcoin's existence, the majority of the population still trusts established institutions more than anything created on the blockchain.

This can be explained in several ways. People are not interested in such a fundamental change, or we are still at the beginning, or the technology is not mature. One of the reasons could be the way communities are trying to promote cryptocurrencies.

Nowadays, nobody really cares who invented the light bulb. What matters is its specific usefulness. The same can be said of all the technologies we use. Nobody knows how a mobile phone or artificial intelligence works. People know how to use ChatGTB, but they don't care about the people who invented the technology and what's going on in the background.

Let's face it, the majority of the population won't know what the double-spend problem is and may soon forget who Satoshi Nakamoto was. His name will remain in people's consciousness and will be associated with Bitcoin and the beginning of the blockchain revolution, but no one will care much about the technical details.

The Bitcoin community is basically doing nothing but trying to convince ordinary people that it is necessary to replace current money with BTC. There are often many other demands associated with this. For example, the right not to pay taxes, the weakening of the position of states and central banks, the right to privacy, and the inability to confiscate money, etc. The transition from inflationary money to gradually deflationary money is hard to imagine for many economists, but also for ordinary people.

Although I am a fan of Bitcoin, I dare say that for the majority of the population, what Bitcoin represents or how it is presented by the community is an unacceptable and undesirable change. In the case of Cardano, I think it is important to highlight the differences in the mission of the project. Cardano is not a protest project, but the key point is the debate and cooperation with existing institutions and businesses. Decentralization can be pushed through a gradual process and there is no need to link the project to demands that are unrealistic in the eyes of the majority of the population. It is important to show people that Cardano can solve or streamline an existing problem through decentralization.

The goal of Bitcoin is essentially to replace central banks around the world. That's all Bitcoin can really do. It will be a partial success if people or institutions hold BTC in reserves. People will continue to use fiat currencies, but some may save through BTC. Some may even use BTC to pay if they can somehow mentally deal with the volatility.

It is important to stress that Cardano can be used to streamline financial services without fear of volatility. Cardano has its own algorithmic over-collateralized stablecoin DJED. It is possible to tokenize basically all fiat currencies in the world and in the future probably also CBDC.

Cardano was not created to replace fiat currencies with ADA but to disrupt existing financial services through decentralization. This is a huge difference in the missions of the two projects.

Some people believe that if it is possible to pay BTC, it will also be possible to pay ADA. ADA can also participate in replacing fiat currencies. Of course, there is nothing preventing this and it is a relevant use case. It's questionable if it's realistic, but Cardanou fans will be happy to pay via ADA. However, Cardano can do more than Bitcoin and can address things that Bitcoin can't be used for. The Cardano community should emphasize more that it is easy to disrupt specific financial services through tokenization and smart contracts.

ADA coins are not required for disruption of industries. ADA is used to decentralize Cardano, but for many use cases, users do not need ADA. When Babel fee functionality is implemented, there will be no need to hold ADA even for fees.

Another major difference between Bitcoin and Cardano is the technological maturity. When Bitcoin was created, it was said that it was an expensive and slow database and that the blockchain was not suitable for anything else. This is no longer the case. Blockchain doesn't need to be an energy-intensive database, and thanks to technological advances, the scalability of the first layers will be solved. Moreover, there are second layers. So the second part about slowness no longer applies either.

It is necessary to forget the arguments of the past and look to the future. Every technology can be improved and made more efficient. In another 10 years, blockchain will definitely not be a slow, expensive, and inefficient database that is only useful for sending tokens from address A to address B. Blockchain will be the equivalent of an operating system allowing any application to be deployed. It is important to stress that blockchain is not synonymous with huge energy consumption and that there are environmentally friendly alternative networks.

The mission of Bitcoin and Cardano is very similar in nature. In both cases, it is important for people to change their mindset and understand the benefits associated with self-custody. What makes Bitcoin different from Cardano and several other projects are the possibilities. In general, what offers more options will likely be more valuable and used.

So how to explain decentralization to a newcomer? And should this concept be explained to him at all? From our point of view, it may not be credible if people are promised the replacement of fiat currencies or the disruption of states. Surely it is more acceptable to talk about an alternative social and financial system. Show the newbies the staking. Explain to them that through staking you personally participate in the decentralization of Cardano and earn regular rewards, i.e. ADA coins. Then you can show them DeFi services. Show them how you can swap ADA for stablecoin DJED on DEX. Alternatively, show them how the lending platform works. Once the newbie sees all the working examples, then explain to them that these services are decentralized and what that means specifically. It's time to explain concepts like unnecessary and inefficient middlemen, decentralization of the network through ADA coins, etc. Place special emphasis on explaining the concept of self-custody.

Nothing is better than a working solution

A lot of people think that blockchain hasn't changed anything yet. Despite that, governments have begun to regulate the industry and the first laws have already been passed. This is clear evidence that the blockchain industry has reached a point where it is legitimate at the level of government. A clarified regulatory framework can greatly help further adoption.

I think the blockchain industry is going in the right direction and just needs to hang on. Adoption rates will correlate with the maturity of the technology. Blockchain is still very young, and smart contracts platforms are even younger. No technology can change the world in one year, but rather in decades. Don't expect miracles in the case of AI either. Now everyone is excited and the AI industry is experiencing hype similar to what blockchain experienced a few years ago. AI will replace many workers and make their jobs more efficient, but it won't be tomorrow or even a year from now. In partial cases, yes, but we may not notice a major change for another decade.

DeFi is the best marketing for decentralization as it is where alternative financial services are emerging. The best thing the Cardano community can do is to use the emerging services and show them to their friends. This will test the quality of the services and only the reliable and efficient ones will survive.

Don't be afraid to use stablecoins, DEXes, and lending platforms. Is it risky? Yes, it is and you may lose some of your wealth. However, you can also earn or profit from using an alternative financial service.

Bitcoin would never have taken off unless people started using it. Many of them didn't understand how to properly store SEED or how to send BTC to peers. A lot of BTC has been lost from the world forever. It's hard to be at the beginning of a revolution because not all services are 100% reliable. Personally, I'm willing to risk losing a small portion of my funds in DeFi. I believe that particular services are reliable, but if a hack occurs, I can't do anything about it and I'm okay with it. Sooner or later, some of the DeFi services on Cardano will be very similarly reliable to the first layer. This is what I want to see and I'm happy to be part of this revolution.

The efforts of the Cardano Foundation and Emurgo are extremely important. These organizations are trying to drive adoption at a business level. They are helping to shape regulation and helping to leverage Cardano in many industries. In addition, they prepare educational programs and do many other things. These organizations have been instrumental in shaping the Cardano community. Their work is not very visible, but it is ongoing and will be successful.

Cardano has been adopted by governments and at least a Fortune 500 company Dish. If the cooperation is successful, others will join. It's logical and it happens normally. Even a possible failure can move the project forward. The more small solutions that are successful, the greater the overall success. If students in Africa use decentralized identity (DID), the whole country can then use it. Can you imagine how big a success that would be? Neighboring countries would very likely join in. In addition to DID, Cardano could start being used for other things, which would be the next logical step.

People expect miracles from cryptocurrencies, but they don't realize that everything has its time. Bitcoin has been accepted as a legal tender in El Salvador. Would you say that's a success? From our point of view, definitely not yet. Why jump to conclusions? You just have to wait. The same is necessary in the case of Cardano and the DID deployment in Ethiopia. Just the fact that these events have happened is extremely important for the blockchain industry. We can be skeptical and say that it is not yet working as we would like. Or we can be optimistic and watch the slow but ongoing progress.

Conclusion

Decentralization is very important, but it is too abstract a concept for people. Satoshi has solved a technological problem that needs to be pushed through concrete utility. Some people believe that the only thing that is useful is Bitcoin, and to this day believe that the blockchain will forever remain a slow, expensive, and inefficient database. These views are a thing of the past. The blockchain industry has shifted significantly and through second layers millions of people use services built on the blockchain every day. They use decentralized applications created by third-party teams. It is possible to exchange 2 tokens in a decentralized way in seconds for a very small fee and without having to wait for hours. This is a huge technological advancement that many people overlook or ignore for reasons unknown to us. However, governments, regulators, and businesses see the potential that the blockchain industry offers and sense that disruption is inevitable.

The best thing any of you can do for Cardano at the moment is to use DeFi services, play with tokens, buy NFTs, or just talk about decentralization with your friends. Ideally, show newcomers how you use Cardano and DeFi. If you are a businessman, you can think about using Cardano to get ahead of the competition.

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