Onomy's Vision (IFS)
Last updated
Last updated
The Internet Financial System (IFS) is an alternative financial system residing on the web. One that abstracts away all on-chain complexity and is more akin to traditional finance, yet retains the crypto ethos and all the cutting edge features that come with it. One that is modular, and supports sovereign app-chains. One that has consumer apps across DeFi, RWAs, Forex, social, derivatives, payments, on/off-ramps, NFTs, gaming, and more, yet retains one core focus - building for the user, with purpose.
Whether you shop, chat, play, engage, create, deploy, trade, collect, or distribute, you’ll be interacting with on-chain tech. But you’ll never know it. By the time the IFS is here, it’ll all be second nature. Just like CTRL+C or putting your computer to sleep after you’re done with it. And this won’t be just you, technophile. It’ll be everyone.
The IFS enshrines blockchain principles of transparency, community ownership and trustless authority, but lets institutional money and traditional finance offer their services through this medium that’s custom built for the evolving internet.
After Onomy’s upgrade to support Interchain Security, the ecosystem has converged into a modular economy, which can now welcome independent app-chains that further complement the IFS thesis. App-chains that can now find it much easier to launch, without having to bootstrap validator sets, whilst getting all the BD, marketing, and funding support needed from the Onomy DAO.
Using modular security, L1s will flourish all with their own sovereign rules and be able to spin up utility at breakneck pace. Builders can focus on their apps instead of infrastructure. Rather than roadmaps detailing potential future governance votes for $PEPEWIFBAG holders, it’ll be easy to have it live from the first TGE, with consumer chains allowed to lend security in exchange for fees to provider chains. Holders can sign in with a Cosmos wallet and instantly enjoy voting power as they join a new appchain, and then the carnival of created value will really begin as communities rally to distinguish themselves.
Now, exchange the concept of memechains with appchains that are ideologically driven to improve the current financial system, the state of privacy, medical bureaucracy, remittance, sensor arrays, local internets, foreign exchange, authentication, data-custody, gaming, art, and of course good old store of value, then you see why flexible, modular security is such a tantalizing long term proposition.
Onomy sees modular security as the key to the Internet Financial System (IFS), where sovereign digital decentralized appchains trade, provide utility, and exchange data and value permissionlessly and free of censorship through federated micro-economies.
We're here to renounce the ancient architecture that’s difficult to build on and scales only through sheer pain and massive expense. The expense and snail’s pace function of monolithic chains like Ethereum is hugely problematic.
Block space is at an absolute premium, and the fact that its use only makes the gas fees go up, is anathema to the wider adoption of crypto. The current status quo stalls recognition of its ability to rewire the sysadmins of daily existence and deliver value to a huge decentralized swathe of stakeholders while doing so. Token value only delivers on their status as speculative assets or solutions to the problem of the L1 like Ethereum itself, not for the actual use-case they provide.
How can industries like Forex, real world assets, consumer DeFi, or derivative markets, or stablecoin remittance, or any financial model exist in a world where the grander the scale of the activity, the more inefficient it becomes? Efficiency is the lifeblood of global finance. Modular security is needed to deliver it.
Capability for sub-second block times, instant finality, and near-zero fees. This is the true IFS on Onomy.
Through Onomy, tokens will find their use-case fast. Tokens that are access-control for the dynamic, sovereign, lively appchains whose value proposition can be completely unique and driven by the community’s wishes, but have interoperable value with an entire decentralized economy of other appchains which they can interact and trade with.
This is the modular chain thesis.
As chains prove their value in the wider ecosystem, they will gravitationally attract from validator security that reinforces their place within it. These security regimes are ‘complementary, not rivalrous’, and act as ‘upgrade paths for maturing appchains’, per Binance’s recent report.
With these rented security paradigms, appchains can keep their sovereignty and scale infinitely while simultaneously reinforcing value to every other appchain that interacts with them. This creates faster innovation, and better yet creates opportunities for certain validator sets on consumer chains to differentiate themselves by focusing their validation efforts on chains that are providing for one sector of the blockchain economy, say RWAs or Forex.
It creates opportunities for small validator sets to provide specific services for micro-sections of the wider blockchain industry. Provider chains can validate on-chain activity faster than any monolithic chain ever could, and thus provide the throughput required for something vast, international and high frequency like payments or bold-yield swaps.
All of this can be achieved while never sacrificing crypto’s core principles of decentralized, immutable, censorship free trust. Onomy, with the focus on DeFi, foreign exchange, stablecoins payments, and real-world assets — the advanced mechanics of modern finance writ large on-chain, will be a nexus point for that innovation.
We are here to empower the next generation of consumer apps that build towards an open, shared, incentivised, yet sovereign and decentralized internet. Our place as a forerunner for the modular chain thesis is assured, and soon other appchains on Cosmos will be able to use Onomy’s validator set to secure their appchains and enjoy the decentralized trust and sovereign development of their use case.
As the modular Onomy economy scales, $NOM holders earn rewards from chains the validators secure. Consumer chains may opt to provide airdrops and other incentives, thereby creating direct access to a novel, secure ecosystem building at the bleeding edge of Web3.
Once approved by the DAO, any appchain project will be able to petition Onomy for its validation services and enjoy the full benefits of Interchain Security provided by Onomy's validator set instantly while they set about creating the scalable utility that leads to blockchain being a part of our everyday lives, with it finally able to provide the efficient value-data transfers necessary to make the Internet Financial System a reality.
