Fusion: Making the Internet of Value a Reality. An originalworks contest entry

in cryptocurrency •  last year  (edited)

Depositphotos_102927946_m-2015.jpg

Source:Depositphotos

Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple.
Steve Jobs

Complex and intimidating. That’s how the world of cryptocurrencies and blockchain still appears to the average person. Just to get started, we need to choose a digital wallet, cope with long encrypted keys we don’t understand, then select one of a long list of major cryptocurrencies to buy. That merely gets us access to the ‘ecosystem’ of that particular currency. If we want to purchase a different currency we need to negotiate crypto exchanges, which have proven to be quite vulnerable to hacking.

Simplicity is needed.

What if there was one single token we could purchase. A token which we could use to sell bitcoin and invest in a new ethereum DAO- all in a single transaction.

index.png


Fusion is a new company which will make this kind of token possible- but that’s only the beginning.

Let’s zoom out and look at where we are today. Over the last 30 years we have built the internet of information. It has become easy for us to exchange information with other people all over the world. Rapidly advancing technology has made it possible for us to start developing the Internet of Value. The Internet of value is composed of the assets held by people or organisations connected to the Internet. These assets include traditional currencies such as American dollars, cryptocurrencies, but can also be expanded to include anything of value- for example votes, music, or frequent flyer points.

(
Trading these assets has always required a middleman. Banks, or websites such as Facebook are examples of these types of middlemen. These types of centralized organisations is how we currently resolve issues of trust. Blockchain technology makes it possible for us to conduct transactions without these middlemen. Transparent and secure, we can create a smart contract between two individuals anywhere in the world. The block chain will make it clear what exchanges of value have occurred, and whether the conditions for completions of the contract have been met. In this way we can both dispense with the middleman, while also resolving the issue of trust.

The missing component is a common currency to transfer our assets on the Internet of value. That is what Fusion will provide

Obstacles



While the Internet of information is well developed, the Internet of value is still in its infancy. The fusion White Paper identifies three primary bottlenecks that are slowing development.

  • The first is in interoperability. Value can be held in crypto currencies, databases, networks or many other forms. There is no single agreed-upon measure of value.

  • The second is in scalability. This is closely related to Limited interoperability. If we want to conduct transactions involving large and various sources of value, this becomes exponentially difficult without a common currency

  • The third is in usability. The White Paper identifies areas such as standardization, platformization, and functional modularity as some of the areas which are lacking.

As many of the issues with usability and scalability can be significantly resolved by improving interoperability, this bottleneck is identified as the one in most need of immediate attention.

This diagram from the fusion White Paper shows how the fusion token can solve problems of interoperability by connecting values such as cryptocurrencies, banks, and stocks.


Screen Shot 2018-06-10 at 5.13.46 PM.png
Source:WhitePaper

How Fusion Will Work



Fusion can be thought of as a control and management layer overlying all other types of blockchains. Distributed network nodes will control the private keys of various other tokens. Other assets in the Internet of value can also be transferred using fusion tokens. Many other financial services available today will become unnecessary. Users can enjoy a cheaper and easier service by using fusion tokens- a common measure of value.

Fusion will implement a system known as Hierarchical Hybrid Consensus Mechanism (HHCM). This system has a number of advantages, including storing application data more efficiently to reduce computing power requirements, and allowing parallel processing of transactions.

Depositphotos_36515569_m-2015.jpg

Source:Depositphotos

Security



Security concerns must be paramount in any financial service. Fusion has developed technology known as the Distributed Control Rights Management (DCRM). This works by distributing and sharding private keys. No single node can gain possession of the complete private key, allowing digital assets to be protected. Separate fusion tokens are generated to represent these assets.

Use Case



As Fusion notes in the white paper, a full implementation of the Internet of Value still lies well in the future. Therefore, a small-scale implementation of Fusion tokens might be a good place to start. Some of the smaller crypto currencies might agree to the use of Fusion tokens as a common method of exchange. Perhaps an online market could be created where users could trade 5 to 10 different crypto currencies through Fusion tokens. Over time, other assets could be added, also able to be traded easily through Fusion tokens. This could be one way of steadily expanding the Internet of Value.

Conclusion



For the Internet of value to develop quickly we need mainstream adoption. The message of Fusion is powerful: here is a single token that you can use to trade a valuable asset you possess for a valuable asset belonging to someone else, anywhere in the world, no matter what that asset might be. The message derives much of its power from it’s simplicity. Apple gave the world a simple way to buy and download apps with the iPhone. The Internet of value has more potential than the Apple network, and Fusion could be the company to actualize that potential.

Further Information



See the Fusion website here
The full team behind the project here
The White Paper here
The executive summary here

This is an @originalworks sponsored writing contest

fusion2018

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Hi. This news seems fabulous to me. It will make simple the realization of the transactions with the cryptocurrencies and with greater security. It is true the simpler things are, the better they digest and massify. Excellent post.

I think they are right about the way the internet of value will change our lives. It is going to take a little while though, in the white paper they go into detail about all the things that need to change to make it a reality.

This post has been submitted for the [https://steemit.com/crypto/@originalworks/370-steem-60-bonuses-sponsored-writing-contest-fusion)
You can also follow @contestbot to be notified of future contests!

Hi @flyyingkiwi! Very interesting insight. I never understood all these difficulties in the transition from the internet of information to the internet of value. When it's about value my mind goes to the many crowdsourced services, from uber to Amazon Mechanical Turk.. Even without taking the crypto into the topic, I feel that the crowdsource and crowdfund dynamics should have produced more distributed wealth, which they failed in doing so far. Truth is that nowadays society is more and more unequal and poor. I don't know if fiat or a multy-currency environment has been an obstacle for this, honestly, I think it's never been. There must be something more in the equation that I'm missing.. all the best, and thanks for this interesting post once again.