2019 FINTECH PREDICTION: Real Autonomous Organizations Take Shape

The last 5 years have seen fundamental innovation in crowdfunding, regulatory technology, the digitization of financial services, Blockchain native organizations, and automated propaganda bots to attract human attention. 2018 brought with it sobriety and a back-to-traditional regulatory treatment of financial assets and their structures. In particular, the crypto asset movement (and its crypto-anarchist community construction) has been put into a well-understood, regulated box by most national regulators. While many interesting lego pieces exist, none of them have yet to fit together. Still, regular people have gotten a taste of both the distribution and manufacturing sides of financial mana.

At the beginning of this year we were hopeful that 2019 would re-combine these pieces to instantiate functional autonomous organizations that work in a constrained market environment and perform useful services. In order to achieve this, however, these new DAOs will need a clear corporate form, a regulatory anchor, and to focus on delivering products and services to regular people, but scaled through machine strategy. We toyed with the idea that the automation of company formation (Stripe Atlas) will combine with the outsourced human/machine assembly line (Invisible Tech) and distributed governance (Aragon) to create companies that scale frighteningly quickly.

So where are the systems that deliver most of the financial primitives without human intervention? Let's start with the fact that Facebook's digital currency Libra is far from being considered a form of decentralized finance. For starters, Libra falls on a permissioned or centralized network, meaning the governance structure consists of a fixed number of entities (29 institutions), although this is said to be only for the first 5 years from release. Nonetheless, Decentralized Finance has grown to hold over $589.9 million of value across its lending, exchange platforms, derivatives, payments, and asset management entities. A notable development comes from Maker -- the most popular decentralized protocol focusing on lending -- is considering to expand the assets it uses as collateral for its smart contracts that generate cash loans. Although Maker is only considering digital tokens such as Basic Attention Token, Ether, Golem, Augur etc. at this time, would it be crazy to think that in the near term we could see the likes of tangible assets such as land, property, and commodities in the form of security tokens included aswel?


Source: DeFi Pulse