With the advent of the blockchain a new era of business is rising due to the power of decentralized; immutable, transparency (or privacy). The concept of rewarding individual participants to act as a non-biased third-party has numerous implications, not all of which have been explored or exhausted by a long stretch. The ability to hold monetary value at the discrestion of the owner of the keys revolutionizes the concept of finance in the modern world altogether. Fiat was fine in the past when we required a physical representation of value to create liquidity within the functioning monetary system. (Arguably the move to an unbacked bill based on the trust of the ability to pay back the loan that created it in the first place was not the smartest due to the rapant abuse potential but that will likely be a different blog.) Now we need a global way of moving and representing wealth that can keep up with the speed of business that can be universally used and universally decentralized.
The concept of a comodity or asset based completely in the digital era paves the way for fiat to potentially have some value once again. Back fiat with crypto. Simple really and establishes the validity of a nation's wealth. But anyone can make a coin, true, but can the value be validated? With blockchain the solvability of the millionaire paradox becomes real thanks to an applicable balancing of market value. Crypto is backed by the cost of block production; supply, demand, and volume/value of real purchase ratio(items bought with crypto assets). Crypto is deflationary and can be scaled within a singular chain or multiple chains to represent the value of a coorperation or nation. Then that value is physically created into fiat through a 3D printer using blockchain as the intermediary validator and inflation control. This can be probably best realized through a hybrid proof of work consensus with proof of stake. The work sustains the hashrate stability preventing 51% attacks, and the proof of stake allows for alternative off-chain solutions to store and represent wealth. Maybe even implement an asic-resistent crypto that allows for the people of a nation to earn and stabilize their own currency.
Obviously there would be far more details involved to make this a reality but the concept seems sound to me. Hopefully someone can find a way to make it work as I think that crypto and fiat can thrive from each other using this as a form of mutual stability.
