Just for better cash

--DW20 vs Ethena (ENA)

Bitcoin has solved the store-of-value problem, but payment processing is too slow to adapt to high-frequency micropayment scenarios. The issue of currency only leaves the cash problem of daily small payments. How to solve the small amount of payment, how to complete the peer-to-peer cash transaction system said by Satoshi? Solving this problem has become a market hot spot.

The new algorithmic stablecoin Ethena (ENA) draws on the lessons of Terra’s failure. ENA is based on ETH and futures ETH short equal status collateral. Pledge $1000 worth of ETH hybrid bonds and issue 1000 stablecoin USDe; DW20 grows from air coins with no value. The final market value reaches about one dollar and then separated from the fiat dollar, or DW20, from the beginning to the end, is independent of the dollar’s existence; the change is only the exchange rate with the dollar, pledged the value of 1000DW20 BTC, 1000DW20 issued. The author has not yet tried ENA’s Ethereum-based money transfer system. However, the author has personally experienced the DW20 in the Chainless system, which is smooth and fast, with instant completion of transactions without waiting time. The peer-to-peer cash transaction of the DW20 system has a good sense of user experience.

USDT, an electronic currency, has shown strength in peer-to-peer cash transactions in payment and quickly occupied the market of electronic currency. Still, there is a problem that the issuing company of Tether is too centralized, and the collateral is also centralized financial products such as US dollars and US debt. The algorithmic stablecoin Terra is not stable, and this instability is mainly caused by the instability of the collateral in the extreme trading market.ENA inherited the advantages of algorithmically stable Terra decentralized governance but also learned the lessons of collateral instability in extreme trading markets. ENA is based on mixed collateral rules, which theoretically give ENA collateral a similar value regardless of whether ETH rises or falls in an extreme market.ENA uses market hedging tools to innovate the design of collateral stability, while DW20 is a newly issued currency.ENA uses market hedging tools to innovate the design of collateral stability. At the same time, DW20 is essentially a freshly issued currency, which is only related to the scale of adoption, and the more people who use it, the more value the DW20 system has.

ENA is based on blockchain, and DW20 is based on a transparent centralized CHAINLESS system. ENA runs on a synthetic dollar protocol built on the Ethereum blockchain, which runs on a POS blockchain. I don’t know how fast it runs or how many transactions it handles, and I don’t remember the Use experience because the author himself has not used it; it is not good to comment. However, ENA certainly has the characteristics of blockchain security and trust. The cash transaction of DW20 operates in a transparent centralized, chainless system; Thee chainless system consists of a general ledger and sub-ledger. A hash index links the chainless system general ledger and all sub-ledgers. When the transaction operation of the sub-ledger is triggered, update the amount of the sub-ledger and the amount of the general ledger if the transaction is legal, urge the general ledger and sub-ledger to save the current transactions, and urge the general ledger to update the hash index table. Based on this, the general ledger stores only the latest transaction entry of the subaccount and the corresponding hash index. For user queries, there is no separate sub-ledger trading log list; trading and separate log lists are stored in the sub-ledger for users to realize the unique structure of the distributed books of peer-to-peer payment. It has centralized transaction efficiency and the characteristics of the blockchain ledger and realizes its data management by itself.

Both DW20 and Ethena want to solve the problem of payments, which is using electronic money as cash. Daily cash is the most common usage scenario, and ENA and DW20 aim to solve this problem of payments. The ENA is the anchor dollar, where 1 dollar has as much purchasing power as 1 USDE. As for DW20, the initial trading price is $0.00005, but with the growth of time and the expansion of the use range, the price of DW20 will rise, and in the future, you can mortgage BTC and issue DW20 to use DW20 to stabilize in a value range for a long time. Although both solve the payment problem, the solution path is very different. ENA relies on digital assets to anchor the dollar and issue currency, while DW20 is a currency. The value of this currency is now the Zimbabwean fiat price, which is very low, and if the DW20 community proves to the world that it is credible and gets users to rely on it, then the value can change from the Zimbabwean fiat price to the US fiat price, and then the US dollar will no longer be popular, and the DW20 becomes the world currency.

DW20 and Ethena provide a measure of value. ENA’s measure is in dollars, which is why it is easy to use; a dollar is a dollar. The USDe equals $1 regardless of whether the Federal Reserve Bank of the United States lets the dollar expand or contract. The first transaction price of DW20 is 0.00005 US dollars, and the development of the exchange rate with the US dollar in the future depends on the degree of market recognition, but from the beginning to the end, 1DW20 is equal to 1DW20. The market exchange rate varies, but the DW20 currency as a measure does not change. Here is a point: ENA is anchored to the dollar; if the Federal Reserve Bank of the United States increases the dollar printing money, the real purchasing power of the dollar will decline, and the real purchasing power of the USD will decrease. However, DW20 issuance is mortgage bitcoin; it may not be worth anything, and theoretically, the purchasing power will only go up.

Both DW20 and Ethena are detached from the reality of centralized banking systems, providing cryptocurrency solutions that do not rely on the infrastructure of traditional banking systems. ENA issues governance tokens ENA, ENA community decision-making and management. DW20 is issued by the chainless system, which issues the governance token CLY. Moreover, DW20 itself is also a currency, and no governance is required after all airdrop issuance. There is only one issue that needs to be addressed. How to deal with the dead coins generated by the airdrop brush? In the early days, the handling fee DW20 charged for transactions on the chainless platform was US$1. The chainless platform filled the price difference from a few cents to $1. Once this issue is settled, the community Will be disbanded. Community governance is required during the issuance process. Chainless platforms have communities, and DW20 is just one of the topics understood as a sub-community without management capabilities.

DW20 and Ethena’s (ENA) USDe are social practices that may or may not succeed. If successful, free the world’s people from the dollar hegemony and strive for more freedom and justice. If it fails, it is also a good thing, like the failure of Terra, providing a lesson for cryptocurrency.

Debout, les damnés de la terre!Debout, les forçats de la faim!

Declaration of interest: The author purchased DW20. This article is not investment advice; please do your own research.

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