Blockchain is an amazing technology, but it is immature, incompatible, disorganized, and without proper leadership. Financial applications took center stage with cryptocurrencies and the explosion of ICOs. FUSION is a new approach that is ushering in the cryptofinance era. It solves problems both in the crypto space and financial sector. Below I examine some of the key features of Fusion that are detailed in its whitepaper. I encourage you to read the whitepaper, or summary, in preparation for the next digital age.
adapted from www.fusion.org/
Taking the Lead
The Fusion platform provides the leadership needed to transition from the current Internet of Information (IoI) to the next digital generation, the Internet of Value (IoV). Blockchains have proven they are worthy of investment and further innovation. But, the obstacles between them inhibits transactions and continued growth. Fees involved in exchanging one cryptocurrency for another can sometimes be outrageous. Their varied features are also being wasted because of the isolated ecosystems among blockchains. Fusion streamlines transaction costs which adds value to a new interconnected network of value. It is the solution that some envisioned Bitcoin would become.
*adapted from FUSION’s interoperability [3]
A Top-Level Ecosystem
*adapted from lock-in process [6]
Complex processes bring together currently incompatible and disorganized peer-to-peer networks. Fusion introduces Distributed Control Rights Management (DCRM) and multi-role smart contracts. DCRM incorporates key sharding and distributed storage to connect blockchains. This secures the flow of private keys over the top-level Fusion ecosystem that manages the many isolated systems. Multi-role cryptofinancial smart contracts add timing and event triggering to existing active mechanisms. This multi-triggering mechanism expands the applications of smart contracts. Upon realizing that Fusion is introducing cross-chain smart contracts, the potential for dynamic applications becomes appreciably more exciting.
*adapted from cryptofinance smart contract call [14]
Internet of Values
Fusion is more than a blockchain solution. Internet of Values is central to its vision. The capacity to map blockchains accompanies economic cross-network transactions. Traditional financial tools become free for more diverse applications. The result is a global exchange of value using digital technology similar to how the Internet mass distributed information.
Some of the early developers of the original blockchain envisioned that crypto transactions would become universal and produce a new internet. However, blockchains were faced with very challenging problems so they began to specialize. For a time, many of the new ICOs were merely clones of existing technology or outright scams. Now, many are entering with the objective of expanding applications. In solving more problems, the crypto/blockchain sector has seemingly complicated the idea of universal crypto transactions. This remained true until Fusion entered the realm.
*adapted from comparison with the Internet of Information [1]
Fusion in Practice
Crypto finance shows enormous potential. The field is exciting. Innovation seems boundless at times. And then fees and scaling become issues. One needs only look at the cryptocurrency market cap at the the end of 2017 to see both the enthusiasm and limitations. However, when we look even just a little bit deeper, the scams become less significant than the new ICOs centered around innovation.
*adapted from traditional finance and crypto finance [2]
Many of the emerging projects entering the crypto space offer a specific solution. Of the new blockchains, few consider the environment. Fusing the cryptographic transactions running on different blockchains is momentous. Instead of trying to dominate the market, Fusion is providing a powerful solution out of an untapped crypto infrastructure. It is building a network characteristic of a series of bridges and tunnels that enables bordering economies to exchange with higher profits.
Many crypto investors own several coins. Non-crypto investors wish to get into the new market securely, and preferably, with less complexity. By using Fusion, investors can also maximize the best features of each coin. This enables traditional markets to gravitate to the cryptocurrency(s) that best suits their needs, rather than, the one with a skyrocketing market cap. Thus, the new Fusion ecosystem becomes an environment with exponential growth for the world’s GDP transactions.
*adapted from task and time node [16]
*Images are adapted from the FUSION Whitepaper figures [1, 2, 3, 6,14, 16]
Thanks to @OriginalWorks for sponsoring this contest hosted by FUSION.
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