The most important concept in Crypto no-one seems to talk about any more
<!-- SC_OFF --><div class="md"><p>There is a very important word, it seems to have gone the way of the Dinosaur in crypto conversations.</p> <p>In fact by chance it also starts with the letter "D", can you guess what it is?</p> <p>If your mind jumped to Decentralization, I'm sorry thats close, but no cigar.</p> <p>The word you are probably missing is:</p> <p>Disintermediation</p> <p>If you are not clear what that means, here are the Top 3 Definitions that came up on my DuckDuckGo search (D is surely the letter of the Day): </p> <ol> <li>The elimination of intermediary agents in transactions between buyers and sellers.</li> <li>Withdrawal of funds from intermediary financial institutions, such as banks and savings and loan associations, in order to invest in instruments yielding a higher return.</li> <li>The removal of funds from a financial institution such as a <a href="https://www.wordnik.com/words/bank">bank</a> for direct purchase of <a href="https://www.wordnik.com/words/financial">financial</a> <a href="https://www.wordnik.com/words/instruments">instruments</a>.</li> </ol> <p>Now perhaps you begin to see, what this word is all about; Fuck the banks, amirite.</p> <p>However, its so much more than that, this is very important to understand. </p> <p>Lets read the very first sentence in the Bitcoin Whitepaper together: </p> <p>" A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. "</p> <p>Oh, so the true idea of cryptocurrency, is to disintermediate financial institutions, from the process of payments with a cash like alternative.</p> <p>You may be thinking "That's nice, but why should I care? I don't hate banks, I love licking the boots of my corporate overlords", many people in crypto seem to feel this way nowadays.</p> <p>Well dear crypto friends, the reason you should care abut the real "D" word, is because this is what gives a cryptocurrency TRUE VALUE. A system that has no intermediaries, is by definition, faster, cheaper and is not subject to interference. In other words a disintermediated system is more efficient and safer than a system with intermediaries; THIS IS VALUABLE.</p> <p>This isnt pretend valuable like whatever Bitcoin maxis are shilling nowadays, what is it now "Store of Value" or "Time Value of Energy"? I don't know, some nonsense mumbo-jumbo.</p> <p>So when you look at a crypto project and wonder "Why does this have value?", now you know the secret sauce value proposition that all of crypto was founded on.</p> <p>Look at your DeFi protocol, does it have more or less intermediaries than the legacy financial system, IS IT EVEN TRYING TO REPLACE THE LEGACY FINANCIAL SYSTEM?</p> <p>Look at your crypto L1, does it have intermediary relays ordering transactions for validators, does it have websites run by intermediaries so you can even access the system?</p> <p>Have a lovely day.</p> </div><!-- SC_ON -->   submitted by   <a href="https://www.reddit.com/user/sloe-berry-brain"> /u/sloe-berry-brain </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ybg8tm/the_most_important_concept_in_crypto_noone_seems/">[link]</a></span>   <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/ybg8tm/the_most_important_concept_in_crypto_noone_seems/">[comments]</a></span>
