There are days that you feel dry as a blogger but you have to write. On days like this, I usually go to coinmarkets.today and HiveStats. I select one or two interesting articles, take some insightful paragraphs, and add some personal thoughts.

Tokenized US Treasury Bonds

The article that caught my attention from coinmarkets.today is about tokenized US Treasury Bonds and one unfamiliar token was mentioned there that I first read from TM in this post.

TM mentioned in the article a stablecoin launched by Blakcrock and he identified it as a stablecoin for institutions. Though I did not fully understand the details surrounding this stablecoin, one thing is clear to me; it amassed $245 million within a week.

The stablecoin was categorized as a fund aiming for a 1:1 ratio with the U.S. dollar, investing in cash, U.S. Treasury bills, and repurchase agreements. Though the token's potential as a medium of exchange is a future possibility, the current major focus of the project is institutional investors due to regulatory concerns. Unlike popular stablecoins such as USDT and USDC, BUIDL shares profits from Treasuries with investors after deducting fees.

The above growth of the token in terms of percentage is impressive. Imagine a 400% increase in just a week. This speaks volumes about the current trend in tokenized real-world assets, that is, the fusion of traditional finance with blockchain technology in managing real-world assets.

The Network Effect of Social Media Is Changing

The second post that caught my attention is a video made by TM on 3Speak. He believes that the network effect of social media is undergoing a major change that most people don't see. After citing a few examples from Web2 platforms, he asked what this change tells us about Hive.

I also asked the same question to ChatGPT about Web3 and the reply focused on popular topics on Hive such as decentralization, tokenization and incentives, interoperability, community governance, and censorship resistance. The identified ideas are the key factors that change the network effect of social media in Web3 and that includes Hive.

Control over data and interaction fosters trust and transparency that attract users who seek greater autonomy and privacy that cannot be found in traditional platforms.

The reward mechanism via tokenization and cryptocurrency incentives motivates user participation, driving network effects as more users join to earn rewards.

Interoperability enables smooth communication and interaction between different dApps that allows users to easily transfer their data and assets across various platforms, expanding the network effect and fostering a more interconnected digital ecosystem.

The incorporation of community governance models allows users to have a say in the decision-making processes. This participatory approach strengthens community engagement, leading to a stronger network effect driven by user empowerment.

Lastly, on Web3, unpopular content cannot be easily removed or manipulated by central authorities. This feature appeals to users who value free expression and open discourse, attracting a diverse range of participants and amplifying the network effect.

Overall, due to the above factors, the network effect of social media in Web3 leads to a more inclusive, transparent, and user-centric digital environment.