Crypto started with just Bitcoin as a honest meme at first against the financial system. However it's now grown into a beast of a platform in which is shaking up the markets.

With success comes copycats and trust me there is no shortage of copy cats when it comes to cryptocurrency. Now more than ever there are thousands of other blockchains and crypto tokens that promise this thing or the other and yes I would even go as far to say that a vast majority of them are traded on speculation over real fundamentals and values.

This is starting to cause a real issues and is now ushering in a new asset class which are tokens with utility, dividends and real world value behind them. Now it's going to be interesting how these take hold as normally a investment into a token that pays dividends would be under SEC watchful eyes and have to be registered.

When you think about it what gives Bitcoin it's value? It's really just because more and more people decided that putting their money into it as a store of value is a good thing. They speculate that it's a hedge against inflation being there is a limited supply of it and because of the demand of the token.

There's really no other value behind it besides that. Sure you can throw in low fee transactions across the world but pretty much very blockchain now does that at an even lower fee plus I don't think it's really used that often for that reason.

When you look at Bitcoin compared to stocks it really doesn't match up and that's what confuses a lot of people even myself included to be honest lol.

Uniswap and Unichain

Recently Uniswap which is one of the big powerhouses when it comes to decentralized finance (DeFi) has announced their Unichain. It's a layer two blockchain on Ethereum that's designed for DeFi.

What does it do exactly?

Instead of Uniswap relying on other layer two scaling solutions like Polygon etc. They are now building their own. This will essentially allow them to have more control over the fees and then broadcasting those fees up into the Ethereum main chain.

Part of the issues with most modern day DeFi is that you have to constantly swap between what blockchain you want to use. So you're parking fees in Binance, Ethereum, Bitcoin, Polygon, COIN etc. and then have to swap between each which honestly creates a mess of things as everything is wrapped on each of the chains.

Unichain aims to try and fix that by providing a single solution or hub in which you only need to have Unichain and use it to quickly swap between blockchains and different wrapped versions of tokens. It aims to both simplify this process which is often a multi step process these days and offer a low cost solution for doing so while benefiting the holders of Uniswap token as the fees collected on the Unichain (which should be cheaper and easier to use) will go back to Uniswap token holders who have them staked.

Governance Is Over Played

Most of these platforms tokens simply offer what is know as "governance" value for the token. Which you get to cast your vote to help push the chain or project in the direction you want. However, as we have seen most people don't really care for this and while sure it's a nice to have thing for a few most people wont hold on to the token as a vote and the values of these style of tokens drops to near nothing burger.

This is Uniswaps way of converting some of those fees back into the value of the token. Honestly as a side note this is something I would like to see happen on Splinterlands where SPS holders would get some of the fees from swaps and trading that happens in the marketplace and between land assets etc. I firmly believe that is the direction that game needs to go to improve values and demand.

Regulations

This does however open up the token as I said above to regulations as it would be classed I believe as a security. You're buying the token expecting a return on it

The way Uniswap seems to be getting around this at the moment or at least trying to is to only take a part of the transaction fee and not the swap fee to give to token holders.

This does however give uniswap a bit of a leg up. If we get regulatory clarity it could start to open things up to the point where the swap fee could be included in. But it's going to have to be very clear and in a pro crypto country for that to start happening. For crypto I believe a lot is riding on this election.

Posted Using InLeo Alpha