The blockchain was invented to solve a simple problem, known as the “double payment problem.”
In the physical world, if I want to pay you, I give you a physical token of value, such as a gold coin. The coin only has so many gold atoms in it, and I cannot copy it. Therefore, when I hand it to you as payment, you trust implicitly that you are now holding it, and the value it represents.
When the internet came along, this became much more complicated. The internet’s main purpose is to copy things. Photos, videos, text. When it comes to money, however, copying makes it nearly impossible to trust one another. Now, rather than giving you a single, uncopiable gold coin, I am transferring money digitally, which means that I can pay you and your friend at the same time with the same “digital coin” and neither of you can be sure that I didn’t just copy it to pay you both at once.
The original solution to this was to put an institution between you and I. The institution (usually a bank) would keep track of your money and my money, and would verify that both of us were playing fairly.
However, institutions have inherent weaknesses. First, institutions are centralised, which makes them a central point of failure. If the institution becomes corrupt, for example, we are all in trouble. Second, institutions naturally accumulate great amounts of power. This increases the temptation for that power to be used, often for selfish reasons. Often, the banks and institutions we necessarily trust to govern our day-to-day transactions are the same institutions who use our money to promote unsavoury investments, political machinations, and simple excess. While this is a natural outcome of the system, it is not ideal. Before blockchain, institutions were a necessary inefficiency. They were the best solution we had to the ugly problem of double payment.
Blockchain solves the double payment problem by taking the “trust’ placed in institutions and distributing it out to the entire network.
Now, instead of one party standing in the middle and checking everyone, we have a system that allows each individual user to check the whole network. Transactions are confirmed when the network agrees they are valid. Just as the internet made communication distributed and democratic, the blockchain can make finance and other critical societal functions a fair, distributed, and transparent process.
The simple promise of blockchain has become conflated with blockchain’s first application, which is cryptocurrency. Cryptocurrencies are currencies which use blockchain technology to replicate the critical attributes of money. Most readers of this text will know about Bitcoin, Ethereum, and many other “alt-coin” projects, some of which have unfortunately lost the trust of their userbases.
While cryptocurrencies are exciting, and have attracted talented people to blockchain projects, they represent only a tiny step into the new financial system that we can build with blockchain.
Imagine if we could simply remove the institutions that manage our day-to-day financial transactions. Banks are consistently in the news suffering from hacks, pushing anti-democratic policies, or putting their users at risk by pushing sketchy investments. Imagine you could do everything you can with your bank, but you had control. No more waiting in lines, no more staying on hold endlessly to get support. No more letters with huge policy changes. No more shadowy institution. Just your money, securely held in the currency of your choice, spendable everywhere, with the possibility to invest, spend, and save as YOU choose.
This is the future we plan to create with our application. We believe this is the true promise of blockchain: a decentralized, open, free alternative to the banking system. This alternative should not only do what a bank can do, it should do it better, so that the generation of the internet can control and plan their own financial future, invest in the way they choose, and be free from institutions that exploit our money, but don’t offer us valuable services in exchange.
Together, we can bring in a future that is truly democratic. Peer-to-peer transactions, decentralised. Faster, lighter, more free. We should have control of our money, how it is saved, and invested, sent and spent.
Blockchain gives you the ability to control your own money online. However, it also opens up new possibilities. More will be said on this very soon.
We will not put your money into shadowy investments. When you hold money with us, we simply guard it for you. We keep it ready, so that you can spend it when ready. You are not supporting a world that you don’t agree with. You are part of the future.
Many companies make profit by spying on your actions and selling your data. We will not do this. It is not part of our DNA, and we don’t want to succeed by doing that. The alternative to this is word of mouth. Please help us by spreading the word about our project.
Our app was designed and built by hackers. We do not compromise on security, and security is a constant obsession. We realize that we cannot create the world we want if we are not the best, most secure way for people to store money. Therefore we have made that a first priority.
The world of blockchain is connected. Just like we can connect for free via the internet anywhere in the world, so should money be freely sent around the world. With Ronin, you can send for free anywhere. You can hold your money how you want, your friend can hold money how they want, and you can send money back and forth for free. In this way, money is truly digital, and we are just a “translator.”
The current app released for testing is the very first step on our roadmap. The app does a few simple things extremely well. However, right now, it only allows you to buy, sell, and send Bitcoin and Ethereum. While we are very happy with initial reviews (we’ve been told it is “dangerously easy”), we know that buying and selling Bitcoin and Ethereum is not the ultimate use case for this technology. The ultimate use case is to give you control over your MONEY. Not just your crypto.