Understand Blockchain Using Design Thinking | Damanick Dantes, CMT | Skillshare

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Understand Blockchain Using Design Thinking

teacher avatar Damanick Dantes, CMT, Macro Trader at Dantes Outlook

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

    • 1.

      Welcome to Design Thinking for Blockchain


    • 2.

      Design Thinking


    • 3.



    • 4.



    • 5.

      Digital Twin


    • 6.

      Crypto Financial Market


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About This Class

Design is no longer an afterthought. Entrepreneurs are building future systems using design thinking. This is the first step in building user-centric blockchain solutions. In this course we will outline the phases of design thinking and the advantage of building systems that address actual user needs. It begins with defining blockchain as a framework for innovation. We will walk through the process of research, idea creation and testing digital solutions. The course concludes with a focus on scaling ideas with a project on improving the crypto financial system. This class is built for a community of creators, entrepreneurs and investors that will benefit from a problem-solving mindset. Students will gain a practical understanding of blockchain using a design road-map to launch new ideas.   

  • Learn and Apply Design Thinking to Blockchain
  • Understand the concept of Empathy
  • Define Real Problems and Prioritize Solutions
  • Build Systems By Users For Users
  • Create Ecosystems and Improve the Crypto Financial Market

Student resources for understanding blockchain and design thinking:

-- Harvard Business Review: The Truth About Blockchain and connection to the Internet Framework

-- CoinDesk: Why Use a Blockchain? Exploring the Use-Case

-- Omega One: Smarter Way to Trade Cryptocurrencies -- White Paper

Meet Your Teacher

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Damanick Dantes, CMT

Macro Trader at Dantes Outlook


Hi, I'm Damanick Dantes, owner of Dantes Outlook. This channel offers classes on trading for beginners and also explores techniques to boost productivity and mindfulness. Over the past few years, I've learned that the hardest part of trading is the ability to properly execute a plan and manage risk. With all of the market noise, it's easy to develop anxiety as a trader, which contributes to a significant decrease in productivity.

So, traders must master the soft skills too. Making any bet, whether it's a decision to take a trade or start a business, requires the right mindset to develop, execute, and actively refine a process. And if you get that right, decision outcomes will hopefully be in your favor. Join me on this journey and stay tuned for fresh content and upd... See full profile

Level: Beginner

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1. Welcome to Design Thinking for Blockchain: design is no longer an afterthought, is the first step in building user centric Blockchain solutions. In this course, we will outline phases of design thinking to build systems that address you need way will walk through the process of research like the creation and tested digital solutions. It begins with defining Blockchain as a framework for innovation. The poorest concludes with a project on improving the crypto financial system. This class is built for a community of creators, entrepreneurs and investors that will benefit from a problem solving mindset. Students will get a practical understanding a Blockchain using a design roadmap tow launch , new ideas. 2. Design Thinking : so welcome. And this is such a unique course because it's combining to thinking methods. It's designed thinking and Blockchain, and it's kind of personal for me because I've gone through the design thinking process myself. And through my research, I figured out that, you know, this is pretty much common sense, but design thinking as a philosophy has been around for very, very long time. The most important thing is that it's user century and a lot of people when they're entrepreneurs, they start with the idea, and they try to defend that idea about the process of trying to understand the customer as a second step. But the first step in design thinking is design and thinking about the customer. In terms of this design process and its five steps, it starts with empathizing with the customer or the end user, defining their problems, ideation or coming up with ideas to fit those problems to solve those problems. And then you're gonna build in prototype and gather feedback and then implement execute on my idea. And that belongs a process of design, thinking that it's truly user centric for the customer, and it's universal process, right? It's never ending and for me from personal project. I'm really passionate about about education. And I always say that education, health care and to some extent, finance are three industries that are the toughest. Teoh try to innovate. It's very slow to try to get a process involved and really try to connect with the end user . Um, and in my case, it was starting a charter school over the past, maybe two years or so. I had this idea. And for those of you don't know, charter schools are public schools that are issued out a charter. In order, Teoh gain access to school choice or further access to school choice. And you really have to go into communities and understand the parents and the demands of the students in those communities in order to form a school. And for my idea was to start up sort of ah, business school, right for for students, for kids to get them thinking about money and get them thinking about the economy and, you know, moving forward that process from elementary to high school and then nearly move on to college. The is this sort of business minded school, and that idea was sort of pressured, and I felt, let that way. And I really didn't understand the end user. So moving along this process and thinking about starting a school, how would you use design thinking to do so, I would first have to empathize. And I place my idea of starting a business school or high school students aside and really focus on the community, map out my district, connect and observe the parents and the students in those communities that I want to start a school and figure out their motivations. You know, what do they look for in a school, and why do they need it in their community? What are the discouragement? It might be too complex or intimidating for them to think about your schools, and they really want to get at the heart of what your school's gonna be offering to their community and figure out the exact needs of that community really empathizing with the parents right and then defining my the problem or the pain points in their access to education with the current schools in their neighborhoods, are they up to par with demands that are currently being set by the parents and the students and prioritize those demands. You know, Are they looking for a school that offers English as a second language? More so than maybe something that offers access to disable youth eyes? It's something that's offering stem education, science, technology, engineering and math as opposed to something more conventional, defined their priorities in the community and figure out the inhibitors both on the parents and the students process. You know what's stopping them from getting access to the right education for their students . And also the intimidators from me as an educational entrepreneur are figuring out. Why can't I get my charter school off the ground and running? And what's the urgency factor? Why can't I do it now? And why did the parents need it now and then? I would move forward to the ideation process mediation process of brainstorming, all possible solutions to formulate a value proposition, and we'll walk through the steps of creating a value proposition. But you know this Ah, good way of doing so is underlying all the verbs that you get from the interviews of the empathizing and defining process. You know, what are they doing in terms of the end users to get to this this common goal or this, or breaking through the common problems that they face underlying those virgins action points and define the possible solutions that would get them to act in the right method to reach their their defying problem. And that's very difficult. But the way to do so is maybe just start with a blank slate on a white board and take a post it. And on every post it placed the problems that are actionable and then also place all the solutions that you got in mind to solve each problem and what you'll figure out throughout the ways that you're creating a storyboard, right, this process of point A to point B and all the simultaneous steps that you would take to create this on the solution process right to get to that end goal. And then what I would have to do is build a prototype right, sketch up my plan for the school, solicit user feedback from the parents and students, test and refine that system for optimal efficiency. What I mean by that is by gathering feedback simultaneously from the community toe, understand their needs and let them be stakeholders And this this business plan with this school, I can't force my idea on anyone again. Force a particular theme for school. Have really gotta build at school from the ground up, understand the community and have them involved in being principles of their child's education. Implementing A lot of times he will start an idea from empathizing or understanding consumer or just generating the idea. And then they go forward with this process of building out prototypes and they get stuck in that phase and they don't end up actually doing it and doing it is very important, right? We move from design, thinking to design, doing It's an actionable process and you're gonna execute a night idea and empower the users to participate. You've got the support of your customer base. Has it been with you and they understand how you empathize with thumb and they see the value in prolonging this process of bringing something really value additive fruition. They need this. They want this and you've understood this up the same processes that you're putting into place that they're thinking about in terms of their action orientated goals and bring the customers in as principles to your idea. And what that means is that they're focused on seeing value in this on Ben the last. That's why I always say is building an ecosystem right as entrepreneurs want to build a product or service. But we really feel to take a step back and think about building a system that's going to be scalable, something that's going to be last. That's on the last long time. And you're taking yourself out of this equation, Putting the customers in the process of being entrepreneurs for prolonging the system of value creation and this ecosystem is constantly refining the process. And it's truly made for the users by the users. So that's my example of creating a school or out design thinking. And, you know, it failed to go through because I was trying to force an idea rather than build an idea from the From the end users that parents and students and when we take a step back. And as I started out by saying that three toughest industries to design or innovate are education, health care and finances, right? Those are the three most important things for anyone, right, and those are the toughest industries to break through. But when we think about Blockchain as a potential innovation from a technology standpoint, those end up being the three industries that are really consumed by this big data environment. And that's why it's so tough to break through with innovation. And we're gonna talk about that. Define Blockchain, define the prostheses around Blockchain. How do we apply design thinking? And do people actually need Blockchain to begin with, right place a consumer at the forefront of this problem solving mechanism and we're gonna walk through some examples and will be pretty exciting to see how these two philosophies intersect to create something brand new and hopefully scalable. 3. Blockchain: now Here's where things get interesting when we move from design, thinking to applying it to Blockchain and to start off with, just do a brief primer on what Blockchain is. It's basically a decentralized network where it's relying on peer to peer transactions to create this distributed ledger across the system, where everything is kept anonymous and simultaneously updated toe, where there's sort of increased transparency and without any use of a central authority or middleman. And this is a basic example. Outworks. Let's say a person a wants to send money that person be the transaction is represented as one block, and then that Block is given a private and a private and a public key, which is, ah, using a system of cryptography to create an anonymous sort of unique identifier across that system. So everyone knows about the prior transaction and say, like how much money has in the bank to transact to be in all other simultaneous transactions that private in public, he wants it to work out. It's broadcasts of the system where every party in the network gets to see that broadcasted transaction. That transaction isn't approved. Using that public and private key then it's ballin ified. And then that block, once a solidified, is added to the change to create this long threat of a Blockchain that provides in, ah, transparent record all previous transactions. And then the money moves from A to B. And this is done sort of simultaneous, their pick quickly. And in order to be able to validate and all that stuff, you're going to use a private of public keys, which is a cryptography use case. And then you're also gonna have basically miners that create that these tokens that fuel the Blockchain that's solved the sort of math puzzles, all these math problems between, like step 3 to 4. And in order for them to solve that problem, they're rewarded to keep the Blockchain going. So it's really relying on demand scalability and increase use cases for the system to to scale on a higher level. Now, once we understood that, it's important to now think about Blockchain as a a foundational technology instead of a disruptive technology. And I'm gonna use some of the research got from the Harvard Business Review article which are linked below down in the description so you guys can sort of follow along, and I think it was a great way to understand about blood chance story. And it's no longer a need for Internet intermediaries. You don't see any central authority or middleman. It's distributed to the network. So where it's a peer to peer involved, where everyone is simultaneously recording ballin If I ng and using this short of transparent network for transactions to be able to to execute along this system, it is really no need for any sort of lawyers or insurance or any type of pay pal system or anything like that. It's all done simultaneously, period. Appear linked, right? So it gets rid of the middleman, gets rid of the central authority. And that's really the inherent fabric of a conventional slow process system that we've got today. And incomes block chains, foundational technology. And if we take a step back and think about computer networking technology that really gave the groundwork for the Internet, you've had this sort of TCP I P system, right and TCP is a transmission control particle protocol, and I P is an Internet protocol. When you've got those two combined, you create this open shared public network which was a creation of the Internet back in the early nineties, and you had the single use case for Internet, which is basically email, right? So when you think about email transacting a message from person A, that's a person, be instead of where block chain is doing it with the the the use of a currency or digital token. So when you got the Internet, you've built a dedicated. There was massive investments. The build is dedicated lines to connect to parties as a is a communication exchange. Right in that communication exchange was digitized and was broken down into all these little steps which were all given a unique address in for information rights. He thought this sort of i p address. And in the beginning there was a lot of doubts about the scalability of the Internet, right. It required this massive technology. Are people going to use it is they're gonna replace brick and mortar or some some old system of communicating. You know, what is this new thing? And given all those doubts, that was sort of this this value in it that created this simultaneous transactions right of information and it really burst since the broad public use with the creation of Triple W eight, the worldwide wet and a lot of companies invest in World Wide Web. And that gave new technology that provided the hardware, the software and the services that we're catering to this user base demand as people started to access the World Wide Web for faster information and that gave them connection to this broad public network. And if you think back to the companies of the early days in the nineties that really adopted Internet technology to really meet the common demand, right, this design thinking of this new information sharing network or the old school players, right, like the Sun Microsystems that created Java and Yahoo and Alta Vista, and then you have the substitutes from the common conventional, um, transaction be services like Amazon took over this Internet retail and he had Expedia, Skype, Google. All these different substitutes were there was massive investment in this Internet protocol , and then now today you have incomes Blockchain right, this financial that really depends on financial transactions that are fueled by the digital currency, and currently there's a lot of companies don't have a central layer of of of of creating ledgers or digital transactions and we've got now was private ledgers, which were costly there slow and they're prone to error and Blockchain really decentralized things to break down the costs and also break down the theme, the speed of process to make it more transparent and easier use right at the end of the day . Here is a good example of the value chain between the conventional Web, the Internet and launching and how these to interact to create value. And you think about this sort of Internet stack. It's the way that we distribute value in a digital world, and it requires an investment in protocol technology. And if you think of these two things as a as a an example of an application stack on one side, you've got the Internet on the other side. You've got Blockchain on the Internet. You can see here that there are thin protocol layers which produced low returns for folks that want to invest in the Internet, and you got a fat application layer which produced high returns. And now today, which you've got or you know what's coming up is the value in this this large fat application of a sharing protocol clear that produces higher returns. And why is that? Because you've got Blockchain and the Ethereum network that really surpassed the conventional market cops of these folks in the Web, and they're valued at, like billions to tens billions of dollars and is really invest in shared layer that's given speculative value. That sort of compounds the use case, and you think about this as a protocol token. And this incomes Bitcoin and either all these other crypto currencies that are used to fuel this Pearl Kalt layer and this investment in Blockchain technology. And you've got the map as a market cap of the tokens increase their increasing faster than the combined value of the application air that's built on top. So if you think about how people folks are rewarded to keep the Blockchain going, these air the miners that are creating these problems or creating these solutions to the problems of that inherent transaction right once that transactions announced the network, the miners air then rewarded Bitcoins or other type of digital currencies to keep the system going. Once they've solved it, they try and they announce it to the network and creates the block that's along this Blockchain. Once they see the value in this digital token, increasing folks that start these projects or transactional mechanisms that are going to adopt Blockchain technology, which we hope would scale up to sort of the enterprise level. It keeps the system running and it keeps the value increasing toe where there's massive investments isn't protocol layer, given this application that is built on top as opposed to this low value in the protocol layer and the conventional Web. So I hope that makes sense. It's a way of scaling out the use case. And if you think about design thinking it was really made or the end user the consumer, there was a problem in terms of costs, there was a problem in terms of speed of transaction and there was also probably broken trust. And once you've got those three inherent pieces of the puzzle, here is fast. Um, there is a fast sort of way of thinking about building something that's scalable and also building something that is useful for the long haul, and this is probably gonna take decades to be massively adopted. But it was a great way to start thinking about how we sort of change the way the digital world works, and I think that's where block chain fits and 4. Empathy: it's all about understanding the end user and the consumer. Earlier, we talked about empathy in terms off me, starting out a school and understanding the district and the teachers and students demands . Then we walk through some of the definitions of Blockchain how it's used and understanding the end user from when they approach the Internet in the first place, using Internet protocols in the value of developers using a system to solve the problems of this new digital world right, the breakdown and trust, the increased cost and also the increased processing time to get that exchange of information and value through the system that's able to scale. And when we talk about empathy in a broader sense, we really want to understand the end user and that end user in this case, is you understanding why you would use this new system in the digital world that we all live in today? And here's a good example of just thinking about the end user and what they do, what they see, what they think and feel, and also what they what do they hope to gain out of this new system and some of the pains that they're facing with the conventional system and how they're able to reconciled to in order to become a stakeholder and creating value across this new design thinking prototype that were sort we're trying to build and a good step by step processes starting out by interviewing the end user as a customer to really get into their minds, to think about how they're thinking and to feel what they're feeling right. What really matters to the end user, what occupies their thinking and what worries and aspirations do they have in order to use a sort of system to create value. And you're also going to look about what they're hearing from the implores and influencers and every market. Every target market has got a live influencer right. These are the people that really dry performance. These are the ones that fit every criteria. When you're walking through your market segments and they have an impact on the community as a whole, what are they saying? And what are they doing as influencers that has an impact on the consumer that you're trying to target to change a system around their problems and the beans and there wants to create values what is being driven by the influences in that market. Try to define that and then move on to what they're seeing right? What is what are they seeing in the conventional environment that's going to influence them to move forward with this new system that they're working with you to design? And what are the competitors doing that they're seeing? That, you know, can also offer value? But also what is the inhibiting factor as to why they can't move forward with that current sort of experiment away? That's that's moving forward with the competitors? And how can they sort of work with you to define what they're seeing that their friends were doing to sort of incorporate thumb into this sort of ecosystem? So you're really working with the end user along this process of design, thinking to build a system that's for them and others that sort of think and feel and see the common problems that they do. And in doing so, you're going to sort of build this community and then also you're also going to look into the attitudes of what they're actually seeing and doing so in all these three elements of hearing, thinking, failing and seeing. You're going to summarize that by looking at what they're doing, what they're doing in public and how their behaviors air changed by the influencers in the market. And then you're gonna summit down by focusing on their fears and frustrations and their obstacles, and again reconciling that with how they hope to gain by this new system and defining what success really looks like for them. You know, you can define success for the community, but a T end of the day of community is really gonna build that success with your system that you're you're you're working through using design thinking mechanism. And I hope that's a good way of understanding with empathy is and how you're gonna break it down by understanding the consumer. And when we bring that back to Blockchain, it's really about breaking down the barriers, wrists, inefficiencies and the costs in a conventional Internet system in this digital world where everything is sort of centralized. And if we go back to think about some of the breakdowns and trust that occurred, let's say the financial crisis, the hacking scandals that we've seen on the Internet, different things that were paying points and you're gonna be able to map that out by using this divine design, thinking value proposition mechanisms to think about how you're gonna create value from this breakdown in either trusts, inefficiencies cost, you name it. So Blockchain meets these challenges that we talked about earlier by creating this sort of reliable exchange. And earlier we saw that we had the standard protocols of the Internet that produced relatively little value as an incentive to build these foundational layers and these foundational layers on the layers that we've got now that are building this protocol or this sort of foundational system in order to create value and grow. And that provides an incentive to build these layers That is really fueled by the speculative aspect that rewards and scales that decentralized infrastructure. So you think about it as building blocks on Hong. This Blockchain that's really based on the empathy, which is the trust and the consumer with the user of this digital world, and it's really about a parent ship. Between this via this period, appear exchange where it's more secure, it's more reliable, and it's efficient where you're having this real time operating letter with community control, right? So I always talk about having that end user as a principal stakeholder. As an entrepreneur, that's working with you in order to create this value system that's going to create this ecosystem toe where they are rewarded by using it and creating value for themselves in their community. Right? So it's everyone working together instead of you working for the end user without having any input from them, right? This is a new paradigm shift where it's really pure appear and were really thinking about how Blockchain on a bigger sense of the world, is changing the way things work. It's really about shifting the power from institutions to the user, and the user is fueled by the power of the speculative value and digital currency, or the tokens that they're gonna be using to create value along this Blockchain. And when you think about supply side efficiency, once you've got that supply side efficiency via the Blockchain, that creates the scalable demand which equals this high, ah, higher speculative value of these digital currencies that really gives you this value proposition. And here are the steps to creating above your proposition. It's it's really about sinking with the design thinking process on. Once you've got you know you're empathizing you, you define your problem. You've sort of yes, solicited some feedback and you're into the steps of building a prototype in order to sort of build your system and approach the market to understand how they're better able to use that system in order to scale and for you to implement it, you've got to step back and define your value proposition, and it really starts with number one defining the problem once it got clear. Problem set. You've got your solutions to that problem, and then you got your inhibitors and then the hitters is two sided, right? The inhibitors for the market. How what's stopping them from adopting these faster technologies that maybe the competitors are doing? They're seeing their peers doing what's stopping them from going 20.8 point, be efficiently and then for you. What's stopping you from getting this to the market faster? What's the urgency factor and what are the things that is stopping you? And how can you sort of mitigate these factors? You've really got to create that that that that flow map in order to do so then it goes to the value. What do you hope to gain from this? And what is a success defined? The success for both you, the end user and the community. Engage the back to really create this funnel of innovation. And once you've got that funnel of intimate and innovation, you really see the power in the user come to fruition, right? The user is going to be in power to use the system, and they're going to be seeing themselves, the principal state holders and creating this ecosystem. So I hope that makes sense in terms of seeing the end user as this sort of partner and creating this new system with digital world. 5. Digital Twin: So at this stage, I hope you're starting to get a better understanding about design thinking as an overall process and and really connecting that with the potential of Blockchain technology. And along this process, we're really going to get to the fun and exciting part of understanding the crypto market and how it's used as a fuel of connecting with the empathy of the end user and creating this value based ecosystem. That's rewarding potential innovation, which is really exciting. And for this part, I'd like to talk about the digital twin and this is really the second step in the process after we've empathized with the end user or the customer and we have to find all the problems and we came to the board and really mapping out their process and some of the solutions with those paying points along that process. And when we shift from the conventional to digital, it's really about creating this twin and how we integrate these thieves, customer processes or pain points and solutions along that process of creating this brand new ecosystem. And it really starts with asking the question, What if? And I got this floorboard from a cognizant which is a consultant gentle consulting firm, their block on design thinking for Blockchain. And they really talk about brainstorming of undoing institutional power by integrating the customer experience with a product or service into sort of this decentralized system. And I want to stress system because system is not the product or the service or are the customer experience. Is this all about creating this twin right? This digital ecosystem, this system that's able to be scaled, that's creating value. That's really placing consumer as a stakeholder and sort of creating the chain environment of really value creation. And that's gonna be the fuel. And you know this fuel is creating this digital currencies, and that's how Blockchain works. That's how the new digital world is going to operate. It's gonna operate through entrepreneurial systems rather than conventional products, services contracts. It's this system that's going to create value along this block change, and it really starts with the entrepreneur or the owner asking what if right, if you're in this conventional mindset of creating assets, resource is business processes, customer experience or product or service. Any one of these No, that's a conventional norm. You're gonna ask what if I can do this and after you've defined the steps of the problems that the consumer is is voicing to you after you empathize with them. Then when the solutions come to the board, you can ask, You know what? If I can create this solution to this problem and that what if it's all going to be digital ? How do you create this system that addresses these problems? And I thought this was really interesting. What if you created a design as a digital twin of a product or a factory or whatever conventional Norman you've got? I mean, that really is going to drive the creation of the system. So all of these pain points are assault with this. What? It it's gonna be any solution that you've got on the drawing board, and that's really gonna fuel the creation of this digital system. And the next step would be an example. So you be us a big bank global bank that deals with trans ash transactional banking. They were hoping to digitally combine payments and transactions into a prototype of smart contracts. And smart contracts are basically Blockchain based transactions right there accurately stored and, um kept anonymous and simultaneously updated along the Blockchain via these letters, which are smart contracts. And it's basically stating the terms of conditions between a buyer and a seller, and it's simultaneously recorded throughout this Blockchain. It's really simple, and they were basically trying to simulate or created digital twin of a letter of credit and typically a letter of credit from a supplier Teoh Toe A buyer fix about seven days to process, and it's vulnerable to error and you know people can not let to do it. And when you've got a, um, a system of negotiation, the speed of execution is important, especially for the buyer, right? The buyer wants to get something right away. They want their terms of agreement to be sealed, to be transparent, to be reliable and to get their end product or service that the demand immediately and what they thought was that if they were able to program the execution portion of a smart contract were an agreement, they were able to break down from seven days to process a transaction to about one hour of programming. This on a hyper ledger, which is extraordinary, and it breaks on the cost of return middleman and table to move from point A to point B efficiently, and it's really complimentary. It's not redoing a system from scratch. It's focused purely on the execution concept, and what they did was UPS work with IBM and other FINTECH companies to visualize, to break down and to gather feedback from the community in order to become a partner to become a part of a larger business strategy. And there's been some talk about this larger business strategy is not fully disclosed, but we're thinking that a lot of the bends air creating this sort of utility settlement coin toe where they can focus purely on the execution. All process to break it down from the seven days to about one hour to read this hyper ledger transactional system that's secure, efficient and less costly. And in order to do so, you know, if people are negotiating terms of a contract and they're getting goods and services transferred from point A to point B, they're most likely going to use the system that is less costly, immediate and more transparent than a system that is old and stale. That's kind of costly and prone air and takes about seven plus more business days. You know, the demand that they're going to attract is going to be massive, and that's going to be the value that's going to fuel the coins and keep the system running . So all that in tow one makes sense for us when we understand Blockchain and how they spoke , sit down and really gathered the community of start ups and and other professionals really understand the utility factor and creating a coin and greeting smart contracts. That's design thinking in the works. That's the fuel of this mechanism that's going to create the future of digital economy. And when we think about that, when we step back now, I want you to please herself as the investor. How do you see value in this system? It How do you become a stakeholder and sort of investing in the speculative value of these digital currencies? That's fueling the future of Blockchain? And that's the exciting part. Now we're gonna move forward into thinking about how investors are better able to approach this market, and the best way of thinking about that is from my own story. I got approached about Cryptocurrencies and Blockchain from a friend co worker. And he was frustrated because it was hard for him to sort of approach the market as a trader and acquiring a digital wallet and thinking about you know what, currencies on a trade. And he was talking to me about Blockchain and the future potential for scale. And he was frustrated because of a liquidity crunch. Right? You had this this low liquidity environment where the price of either just went crazy, right? It spiked down. A lot of people were upset, they lost the value, and then it came right back up. And that was sort of a reflection of market inefficiency. And we're gonna be talking about that from a trader's perspective and how this market can mature to be able Teoh, mitigate some of that liquidity, um, problems that they've got. So it's really important to place herself is now an investor from an entrepreneur standpoint, to understand how this can be scaled and how you can profit from it in terms of thinking about this as a value creation mechanism. So let's get started 6. Crypto Financial Market: So now that we've understand Blockchain through the lens of design thinking, it's now time to place ourselves from the position of an entrepreneur to the important stakeholders Azan Investor, the folks that are fueling this speculative value in the digital currency's that are keeping the Blockchain running. It's the reward mechanism that's empowering the user base as a Z create value across the block chain. And when we go back to the steps of design thinking and empathizing, I go back to the example of my coworker who introduced me, the Blockchain and Cryptocurrencies via his frustration of treating Ethereum on the Geox platform. He was placed in this liquidity crunch that we might have seeing familiar during the route . I think June 2017 will walk through that story and understand the creation of Omega One. This some interesting project that I came across in terms of making a decentralized automated trade execution platform for more mature traders who are approaching Blockchain and crypto currencies as a way of developing maybe their own portfolio. And it's important to know that Blockchain and Cryptocurrencies is still very, very young is gonna take a long time, a scale. It's a young markets, you're automatically going to get a lot about volatility, a lot of speculation in hopes that a little attract more mature audience from, you know, more mature entrepreneurs who are able to find a viable use cases that are feasible to scale and also mature audience of investors, or able to approach the market not only as traders but as large maybe block owners. And in making sure that thes thes ideas are scalable, that they can invest large amounts of money to produce higher returns in the future. And you know this, you have got to forms of investors. You got the traders whose dry on the speculative power of volatile markets to create short term winds and, you know, short term, maybe losses that are more controlled. And you've got the larger investors, who are also approaching the crypto currency markets in larger block orders in hopes that you know they see potential value in the long all for larger speculative gains or losses. It got all types of objectives, but when you approach the markets in such thin liquidity, it creates a lot of problems that the teachers, the fuel of investment, that's you know needed to keep the system running. And enough of that talk with Let's move into sort of the example of will Make one. Here's their website. You can browse Duterte to learn more about how their platform works and what they're bringing to the market. That's fresh and new, which I find is very, very interesting from a trader's perspective and having seen the the value when creating some sort of decentralized market for trading is pretty simple and very much needed. So when my coworker count to me and talked about, you know, he showed me his to troll holiday. He was freaking out in June 2017 at the price of either or theory. Um, their their digital currency, you know, had a flash crash in about 99% less than a second, and he was living out, you know, he was ordering what was going on. It is a digital wallet. Why would one single order produced such massive volatility? And thankfully, you know, they were able to spite back and the markets went on as normal. But this is a reflection off a inefficient market, and that deters a lot of higher profile traders. You know not just the individual mom and pop traders, but the higher folks who we need to keep the system running because he are, you know, the larger order books that shows trust in a maturing market. And that was pretty suspect. So what occurred here? This is just a medium post by some of the guys, right? Omega one. And they were just producing, you know, the base case value why their platform would be able to solve these types of problems. So this is all due to a multi $1,000,000 sell order that was being placed on the exchange. And because the GE toxic change did not have enough buyers on its books to accommodate this large sell order, the price immediately crashed from 3 17 81 2 to 24 7 48 And that movement was enough to trigger a wait. About 800 automatic position liquidations due to margin calls and stop loss orders. That pushed the price talent about 10 cents from all way of hair. That is crazy. All right, so what happens is that you've got this sort of feedback loop of everybody else has got these automatic sell order that were rushing in from this one large order that was unable to absorb the thin men that was in the market. And it's a symptom of underlying problems, as you see here that by the stress of capital close increasing fast for in the market infrastructure development and you've got this rapid demand speculative environment. But the infrastructure is also very, very young, and it's not able to absorb large block orders with such small orders that are flooding the market. So that mismatch between supply and demand creates this liquidity crunch. And what this means for investors is that, ah, 20 times increasing daily trading volume since it started 2017 without any fundamental change in market structures basically deters larger players from entering a market that they view is less secure, more malicious and, um, and less liquid in terms of getting in out efficiently. And it also deter smaller investors like my friend So omega one. When they were thinking about creating a more decentralized market. They empathized with folks like my co worker to create more of a mature system that they can, you know, trade with ease and what this tells us about exchanges is that basically they've got, um, a way to instantly liquidate you with market orders on a very thin order book as they stayed here. And they walked through an example here of stating that you know, a person stop loss and at a next actual execution price is about 10 cent, 10% 0.10%. And on G docks, people had stop losses. At 3 16 A higher price actually sold their ether at 10 cents. So Jax does not specify whether these stop orders air time, priority base or their price base. So someone had to stop loss order at 50 bucks here, and someone puts a stop loss order at 100 bucks. You know those two orders? One of flash crash occurs? Who gets to sell their either First, is the person at 50 bucks 100 bucks who came first who came last? They don't specify. So when you're entering this thin market, everyone gets cut out, and that's very painful. Even in on one second process. It is very suspect of what would happen down the line if you know this would occur. God, people don't have trust in a system that you know is so massive. Um, so what occurred areas omega one came through with a solution to this problem, and what they basically do was cut down your order when you when you got a large order and distributes that not only on one exchange but across various exchanges to access a larger pool of liquidity that is much able or is much easier for the market to absorb, so they have urine. Example. Someone put posts $30 million order on the Geox platform using the Omega one platform. The market would not have barely moved at all. Instead, the trading engine made by Omega one would have taken this order and broken into thousands of tiny sell orders that were placed intelligently across the world's liquid crypto exchanges. So you're able to cut down the costs, increased liquidity and, um, not disrupt the entire market framework by doing so because it's smaller orders that are much better able to absorb from the available demand on the market. So if that makes sense, that's an easier way of empathizing with that end user and keeping the market sort of liquid and easy flowing, as it should be eso that unknown trader using Omega one would have kept their funds on the Ethereum, Blockchain and a wallet under their control right up to the point of settlement. Simple right, But it's not readily available, which is crazy to think of. And you can go through a website, go to some of the white papers, and I'll list the project some more technological stuff that we can work through. But this is just very simple in terms of design thinking. This is how it works. You know, they've got a solution, made empathize with the customer, ready to find their problem. And they're creating a solution that's creating a system of border float that's much easier , more transparent to operate. And here is just a way of thinking about it. You've got Member one. Remember to buying and selling either on Bitcoin for either. You know, the member funds remain locked in their Omega wallet, all the Blockchain until the other side of the trade is delivered. So when it got is apparent, order right is large block that is entered by their users. These a more mature traders or trusting the system to in order to get liquid exchange of their funds. The orders then match with the private exchange that creates liquidity between the users. You've got this matching functionality here. They're sourcing their Bitcoins for the either in the markets. It goes to this trading agent that's able to slice up their orders. Different exchanges. We've got small orders here. Smaller is there the execution logic then routes the orders to different exchanges, fills it back to the private exchange in order to cut down all that cost and and transaction mechanisms to availability into higher availability of sourcing liquid exchanges over this broader ecosystem off cryptocurrencies, which is great. So you've got this large order that's then split into Net waters or Charles orders represents a time slice of execute herbal liquidity demand for each pair at a given moment . And that's basically the crux of how they operate and you can walk through the white paper to see more about the infrastructure behind it. But just for simple use cases, you able to see how design thinking from a much broader macro perspective is broken down to understanding how Blockchain works and in understanding the crypto market that fuels it and then understanding how design thinking really matches with the end user as traders who then fuel this system