The Three Core Crypto Concepts Of Anthony Pompliano: Digitally Native Assets, Contracts and Accounting
Anthony Pompliano, the co-founder of Morgan Creek Digital, has recently gone to social media to talk about what he believes are the three most important core concepts for the crypto world.
According to the crypto expert, we are moving into a new digital world, so the three main concepts should be: digitally native assets, digitally native contracts and digitally native accounting.
Too many people are competiting in the intellectual olympics across the crypto industry.
There are only three core concepts that actually matter. Hopefully we can demystify these ideas for those who do not yet understand.https://t.co/MokmWGxEia
— Pomp 🌪 (@APompliano) March 11, 2019
As we have lived in an analog world for too long, these are the three concepts which will lead the revolution forward in how we live, Pompliano affirms.
We are now moving from the electronic to the real digital world, this will accelerate the technology and algorithms will start running important parts of our lives.
Digitally Native Assets
Cryptos are the digitally native assets, obviously. Stocks, bonds and commodities are not really native to the digital world, but people are already working to digitize them as well, which will let them be programmable for the first and have near-instant settlement times.
All of this, combined with low fees and micro-transactions, will revolutionize how assets and ownership work. The process of trading will also be considerably easier to automate using artificial intelligence and machine learning as well.
Digitally Native Contracts
Another important part of the technology is the digitally native contracts or, as they are known, smart contracts. These are contracts which are created using a technology that will fulfill them as some previously agreed criteria is met.
The other kinds of analog contracts are simply too slow for the digital world and open to interpretation. This type of contract is easy to be used in situations where there is no controversy, only conditions that A will trigger B or then C will happen when A is not met until a certain deadline, for instance.
These contracts are fully automated and “smart”. They are created by humans but automatic.
Digitally Native Accounting
Finally, there is the digitally native accounting. All information is just a bunch of files, so you need some way to organize them in a way that they can be understood and that this information is not easy to simply erase or duplicate.
The blockchain is used for this. It is a completely immutable ledger that can be used to store information in a decentralized and secure way.
The Blockchain, Cryptos and Smart Contracts Are The Answer
Something that gets very clear from Pompliano’s article is that the combination between the blockchain (accounting), cryptocurrencies (assets) and smart contracts is perfectly digital and can be the answer to making transactions in the digital age.