The founder and Chief Executive Officer (CEO) of Lyn Alden Investment Strategy, Lyn Alden says that the scope and use cases of programmable money is not yet known. Alden, whose firm focuses on global macro overlay made the comment during an interview with Fountain FM’s Kevin Rooke on May 20.
Unpredictable Future Use Cases
The independent analyst said that no one knows for certain what programmable money will be used for in the future. She gave an example with iPhones, saying that when it was invented, people did not know that it would disrupt the taxi industry.
She said that what is clear at the moment, is that Lightning Network, built on the second layer blockchain, can do much more than what traditional payment platforms do.
According to her, with the Lightning Network, the transmitting of micropayments will become easier. This is unlike what is obtainable with traditional fiat processing platforms that have higher fees.
Gaming & High Frequency Payments
Alden also said that onboarding gaming ecosystems and spam prevention are other clear areas where the LN will play active roles in. Among other exciting use cases not obtainable on fiat platforms is high frequency transactions.
Just as in the case of iPhone disruption of the taxi system,
“You cannot put one and one and one and one and you get, say seven”
Alden maintained that projecting what programmable money would accomplish in the future is a difficult task. Bitcoin and other cryptocurrencies are:
“like a set of building blocks like mac phones and the internet where it is hard to say where it goes in 10 years.”
She highlighted that micro payments, such as enabled by LN, will have a massive impact on developing economies, highlighting that the opening up of systems through decentralization can be compared to the impact that outsourcing had to the economy of China. This lifted millions of Chinese from poverty.
“We are going to see a combination of work from home technologies. Smoother payments that make it possible for people to go around banks”