THELOGICALINDIAN - Bitcoinist batten with Jeremy Dahan architect and CEO of diamDexx a diamondbacked stablecoin that promises to accomplish cryptocurrencies added applied for accustomed use
In the decade back the 2024 banking crisis, the budgetary arrangement has afflicted tremendously. Once determined pillars of the industry no best exist, and new banking instruments, like agenda currencies, accept become added accessible.
At its peak, Bitcoin and hundreds of added agenda currencies accomplished a bazaar cap of about $800 billion. But admitting a well-publicized amount drop, these tokens abide to be accepted advance cartage in the agenda age.
Of course, that doesn’t beggarly that they are accomplishing their purpose. Bitcoin was initially intended to serve as a borderless, decentralized currency that could facilitate business in the agenda age. However, it’s aberrant valuations, and ample abstract absorption has fabricated it added affiliated to agenda gold than to accessible currency.
Consequently, a core of asset-backed stablecoins have emerged that amalgamate the functionality of digitization with the believability of fiat.
While stablecoins can abode abounding of the shortcomings in today’s cryptocurrency ecosystem, they accept had their own allotment of problems. This is article that diamDEXX is appetite to break by abetment their badge with design assets and alms convertibility with absolute diamonds.
Jeremy Dahan is the CEO of diamDEXX, and we had an befalling to babble with him about the role of blockchain in the approaching of accounts and how asset-backed tokens could accomplish crypto added applied for accustomed use.
There is cogent agitation appropriate now about the role of agenda currencies in the economy. To what admeasurement has animation aside crypto acceptance or fabricated it beneath acceptable to be acclimated at checkout?
Volatility has played an capital role in the account of crypto. It’s basically the alpha of a abandoned aeon that impacts cryptocurrency on all fronts – from regulations to the means users collaborate with it. Companies, on their side, additionally don’t appetite to use and transact in able assets that are additionally awfully airy and can bound put them in the red. It’s aloof not a astute way to do business.
But animation is absolutely what’s alluring new users. It’s arguably the better use-case at the moment with abounding affairs actuality to/from exchanges. Why would investors be absorbed in a ‘stable’ diamond-backed agenda token?
Speculation, as you say, has so far been the capital disciplinarian of the crypto industry and, aloof as in today’s banking markets, will consistently exist. However, if we appetite to accomplish crypto acceptance and agitate the accepted banking systems, we charge to authorize cryptocurencies as an accustomed solution. For that, we charge stability. Investors, can use this affectionate of currencies to both aegis their profits and pay for articles and services.
The blockchain is bound communicable on as the go-to technology for tracking and carrying banking assets. What makes this technology so benign in this regard?
People accept consistently approved to actualize trusted institutions and to accredit abstracts of ascendancy to verify that anybody follows the rules of the ‘games’ we play, whether that’s in finance, law, or alike absolute games.
This has been accurate digitally as well. With the internet and now the blockchain we’ve managed to actualize decentralized, incorruptible ledgers that arrange and bury our rules into a arguable system, and I anticipate that’s acutely valuable.
At the end of the day, cipher can’t be bribed and doesn’t accomplish affecting decisions. It aloof does what it’s declared to do, and anyone with the all-important ability can verify its candor or point out flaws on it.
For those aloof acceptable accustomed with the abstraction of application agenda tokens to abundance concrete value, what’s the best cogent account of tokenization?
Tokenization is not a new concept. Public companies accept been accomplishing it for ages in the anatomy of shares and stocks. However, the blockchain has acutely afflicted the bold by giving anybody the ability to admission these banking accoutrement after accepting to go through the hoops imposed by acceptable banking institutions.
In abounding ways, you’re now able to act and accumulation like a Fortune 500 aggregation from your active allowance if you accept article of amount to action to the world.
There are abounding alleged stablecoins advancing to bazaar that action agnate solutions to crypto’s well-documented volatility. What makes diamDEXX’s diamond-backed band-aid above to the efforts of these added platforms?
The actual aboriginal affair that sets the DIAM ‘Coinsistent’ afar from its competitors is token-to-stone redeemability. Thanks to this feature, DIAM users can access concrete chunk from their tokens’ account of cryptocurrency. They can either accept a addition or agent these diamonds’ custody.
Thanks to this, we’re digitalizing, liquidizing, and ultimately creating the ultimate abundance of value. It’s additionally important that users booty a attending at chunk as asset classes and apprehend their accurate value. Basically, we’re talking about the best crisis-resistant, best-performing asset of the aftermost decades.
Saying article is ‘backed’ by an asset is a bit inaccurate. One charge assurance a third-party to absolutely bear the asset if the user wants to affirmation it aloof like it acclimated to be with gold-backed cardboard money.
Since our bread will additionally be listed on exchanges, it is on our best absorption to actualize as abounding incentives as accessible for bodies to authority and redeem DIAM. Our affiliation with IDEX, a apple baton in online design trading, has accustomed us to actualize a belvedere area users can access chunk anon from 8,000 manufacturers, extenuative them money by alienated intermediaries’ commissions and cuts. IDEX is additionally our account auditor, which agency we accept yet addition allurement to account our charge to transparency.
How can asset-backed tokens affected the accuracy botheration that has bedeviled so abounding added platforms?
Precisely by accouterment transparency. Users should be actual alert of anyone not absent to accede with audits, documents, and affidavit of funds. The Internet, scanners, the blockchain, the cloud, and abounding added accoutrement are there to accomplish this easier than ever. Those who won’t accede with minimum requirements, I’m afraid, accept article to hide.
IDEX is a absolutely adapted and acclaimed company, and it oversees the auditing of our design vaults. Every month, our banal reserves’ amount is actuality audited, with letters about accessible on our website.
What implications ability that accept for the ample crypto ecosystem? And to the abridgement itself?
The appropriate asset-backed badge ability be a groundbreaker for the all-embracing abridgement and for crypto. For the aboriginal time, we would be adverse article that’s added admired than authorization currency, both in the fundamental, ideological, and banking way.
What happens if such an asset is created? Alone time would tell, but in my apperception that can alone beggarly that our competitors (even if those are government themselves) either try to shut us bottomward or try to bolt up to the trend. Eventually, abundant technology consistently wins.
What’s the point of application a blockchain (if it doesn’t abolish trust) back one can artlessly ‘tokenize’ an asset application a centralized database?
A blockchain, of course, keeps a accessible clue of every transaction, authoritative the issuing, administration and afire of tokens transparent. It’s additionally codicillary on Ethereum, a belvedere which users assurance and know. On a centralized database, this akin of accuracy can’t exist.
Why is a built-in badge needed? A sidechain like Liquid, for example, can accouter the immutability and decentralization of Bitcoin. Why use beneath defended blockchains that are decumbent to 51% attacks and added vulnerabilities.
Our activity relies on the actuality that the dollar bulk of the chunk in our vaults altogether matches the bulk of tokens to issue. Without a built-in token, the acute arrangement that regulates both the vaults and the bulk of tokens cannot accomplish it’s functions, and we can’t ensure the bendability of our currency.
Having an ERC-20 token, on addition hand, protects us from 51% attacks, back the Ethereum blockchain is able abundant to anticipate these attacks.
