Ray Youssef, the CEO of Paxful, a globally accessible cryptocurrency marketplace with built-in support for “over 300+ payment methods,” has predicted that “more than Bitcoin (BTC), it’s peer-to-peer” (P2P) or decentralized finance (DeFi) that “will make an impact in 10 years.”
Youssef, who studied history at Baruch College, believes the “best [application] of blockchain technology” is its use in implementing the Bitcoin protocol. He also thinks that the “best function of Bitcoin’ is enabling “peer-to-peer finance.”
Youssef told CryptoInsider: “As far as the technology behind Bitcoin, it is useful in solving problems among people with peer-to-peer finance as the framework.”
Three Layers Of Technology: Decentralized Finance (DeFi)
Going on to comment on the use cases for distributed ledger technology (DLT), Youssef noted: “The best utility of the blockchain technology is not going to be in the enterprise, but at the consumer level where normal people are using Bitcoin and cryptocurrencies in their everyday lives.
The blockchain is the layer 1 technology, Bitcoin is the layer 2 technology, and peer-to -peer finance takes this human network as the layer 3 technology and that is where all this innovation is going to happen.”
Elaborating on the types of services Paxful provides, and how they will complement the existing financial system (and other crypto services) in the future, Yousef remarked: “Peer-to-peer finance is Paxful’s core. It takes something that people have done for hundreds of years, (interacting with one another through trade) and brings it to the modern ecosystem that is cryptocurrency.”
The Power Of Bitcoin Is Enabling Peer-to-Peer Finance
He continued: “The power of Bitcoin shines through in its ability to nourish and enable peer-to- peer financial networks. The services [offered] by Paxful provide a space for healthy competition, one that we’ve seen in traditional banking, but that can flourish even more through digital banking.
Due to this, in the future, we will see an increase in liquidity between all people of the world, with ease in the way money moves. This will also greatly increase the abilities of e-commerce and free trade.”
When questioned about how we can solve the current web monetization problem, and whether crypto can help, Youssef said: “The problem with web monetization is that companies like Google or YouTube control Ads and payments to content creators. With crypto involved, true to its original mission, no other companies (Google and YouTube) will be in control of how much you get when monetizing content.”
Advertising industry Business Model
He further explained: “The advertising industry works in that advertisers pay content creators to promote their product in the content being created. Consumers are often influenced by their favorite content creators to spend their money on the product being advertised.
But with the centralized Internet where the traffic keeps on routing through a handful of big websites, it gives them incentives to inflate the middleman cost. YouTube for example only gives the content creator 55% of what the advertisers paid. This is the problem with centralization when only a few companies are controlling something as big as the Internet; there is always an incentive for them to make people pay as much as they want.”
He added: “That’s where cryptocurrencies and the idea of the entire decentralized universe come into play. It gives people an incentive to work and everybody a chance to act as the middlemen as long as they are willing to invest their computational power.
Just like how the miners are paid for mining the blocks in the bitcoin network when the Internet finally switches to Dapps, they can be designed in such a way that certain nodes can facilitate the application for connecting content creators with the audience. It can be through the network’s inbuilt coin or through any other crypto tokens and just like how bitcoin made transactions so much cheaper, the decentralized competition will give more benefits to content creators and they’ll surely be getting [a much] higher chunk of what the advertiser is willing to pay.”
Education-Related Initiatives In The Blockchain Space
In response to a question about what Paxful will be doing to promote education and create more awareness about decentralized technologies, digital assets, and the importance of learning (in general), Youssef told CryptoInsider: “We will be kicking off an Africa educational tour in May.
We will be traveling to universities around the continent in order to educate them on how to use the Paxful platform and the power of peer-to-peer finance when it comes to economic stability and freedom. We will also be teaching them how to use the profits they make from trading in order to build their own business, providing insights on basic marketing and SEO practices.”
When asked how we can make it easier to transact in Bitcoin, Youssef noted: “The more people that adopt Bitcoin into their daily lives, and [those] who continue to get educated the easier it will be to bring crypto/Bitcoin into the mainstream. The two key factors that will make transacting Bitcoin easier are increased security and regulation which will bring more users into the fold, and peer-to-peer transactions, which we like to think of as an intro into trading.”