WEBVTT
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All right, guys, this one is fairly important and has
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a big impact for Cardano. And let me break it
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down for you guys so you actually understand what's going on.
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So Cardano has merged Cardano Improvement Proposal 113 into the
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Cardano Improvement Proposal repository. So it's a move forward to
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getting this proposal integrated into the Cardano ecosystem. There's been
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code and proof of concepts done over the years But
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it's been quite a lengthy process to get to where
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it is now. And this is so important for Cardano's
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future in real world assets, tokenized assets and stable coins.
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And this is all around programmable tokens, being able to
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put rules around how a token is issued, how it's spent,
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who can spend it and where it can be spent
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and sent to. So this is highly important. It's available
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on the EVM space for a long time. because of
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the quirks that EVM had, it made it possible. But
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now within the Kadano ecosystem, we have this too. So
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let's go into the details here. So the SIP113 is
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merged into Kadano's improvement proposal repository. Now this doesn't mean
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it's on chain and working right now. You can fire
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up a Kadano wallet and smart contracts or whatever and
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start using it. That isn't quite the case yet. There
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still needs to be work done to implement it through. Although,
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there are some wallets and projects that have been proactive
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and have already implemented this into their wallets and ecosystem,
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such as Gero Wallet. They're always ahead of the game
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there and some brilliant developers behind that ecosystem. So great
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stuff to hear. But let's have a look at what
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this proposal actually does for the Cardano tokens in general.
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So normally a Cardano token, it doesn't have any controls
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around it. When you create a Cardano native asset, a
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token itself, You can move it freely. There's no controls
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behind it. You can't say this wallet can't send it
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to an exchange. You can't say the wallet can't be
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used in a mint or anything like that. So there's
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no restrictions. There's no control. You are free to do
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whatever you want with a token within the Cardano ecosystem.
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But then this creates issues when you are looking into
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regulated assets. So if you want to mint a stablecoin or...
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shares in a company or a property or tokenize some stocks,
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anything around that, all of those types of assets are
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regulated and they can't be sent to an unauthorized person.
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They can't be sent to a sanctioned country. You can't
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allow certain people that aren't sophisticated investors to be able
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to touch those assets. So there's a whole bunch of
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rules here for the regulated space. And we've seen Other
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ecosystems absolutely skyrocket in the RWA space, the real world
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asset space, because they have these mechanisms in place. So
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Cardano doesn't have it, but now it does. And that
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is the big difference here and why programmable assets are
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so important. So a really easy way to think about
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this is that the SIP113 gives a set of rules
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in regards to how a token can be used and
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what it can actually do. So let's say I, Peter,
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want to send Bob a hundred of token XYZ. The
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blockchain will run some rules. It will check. Can Peter
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send this particular token? Is Bob allowed to actually receive
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this type of token? Are any of the wallets involved
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here on a particular deny list? Is anyone actually even
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allowed to transfer this token at all? And if it
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passes all those rules, then yeah, sure, the token, the
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transfer goes through. But if it doesn't, then the transfer
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doesn't happen at all and those particular assets can't move.
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The transaction actually fails. Now let's take a stablecoin example.
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Let's say someone wants to create a stablecoin on the
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Kadano ecosystem. The company that is issuing the stablecoin would
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have to ensure that they comply with sanctioned wallets. They
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can't allow these sanctioned wallets or wallets from certain countries
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to be able to receive or send that USD stablecoin.
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with the SIP 113 in place, you can put in
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these particular rules to comply with this type of regulation. Now,
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if I want to send $ 1, 000 of this particular stable
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coin to Bob, it will go through and check if
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my wallet and Bob's wallet are under the sanctioned list.
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And because we're not, then that transfer go through. But
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if for some reason Bob's wallet was under a sanctioned list,
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When I try and do that transfer, it doesn't go through.
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It gets blocked. Now, this doesn't block other assets in
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my wallet. It only blocks that programmable token. So if
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my wallet, for example, had ADA, a whole bunch of
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NFTs and some other Kadano native tokens that aren't under
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the programmable type, I can still move those freely. I
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can move them anywhere I want. I can still send
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them to Bob, even though they're under a sanctions list.
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And that's totally fine. It's just that particular USD stablecoin
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that was issued under SIP 113 that can't be moved
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because it's complying with the rules that were applied to it.
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Now imagine the real world asset or tokenized asset type
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of scenario here. So let's say a company issued 20
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million of a particular real world asset. Let's say it's
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a property. And now they are looking into tokenizing all
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that and allowing people to buy assets tokenized stocks of
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that particular property. So there's companies in Australia that do this.
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There's one in particular called Brick and they allow their
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customers to buy a brick essentially of that particular property.
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I think it's a pretty cool idea. Now, the people
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that are buying those bricks have to be registered within
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their platform. They have to go through the full KYC
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process and be a registered, sophisticated investor and allowed to
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actually trade through their platform. So now there are a
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whole bunch of rules behind that that need to be checked.
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So I can't, as a holder of those particular assets,
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the $ 20 million property, I can't send it to a
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random person that isn't on the verified owner's list. And
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I can't buy them if I'm not on that list either.
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So these are the type of rules that we can
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put in place to comply with all the regulations around it.
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And it makes it a lot easier when you actually
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have this programmability within the token itself. And this also
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goes into the whole KYC process, know your customer. So
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for example, some tokens or assets, you may not be
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able to buy them in a particular country because they
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don't have the regulations or they don't comply with the
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regulations there. So if you're going through a platform and
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trying to buy a particular token, it won't let you
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because of that KYC process and it hasn't been validated
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and you can't get on the list. So it allows
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for all those types of situations too. Now, the downside
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to this, or not really a downside, you may think
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of it as a downside if you're a full decentralized
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crypto type of person, but it's the freeze and seize
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aspects of this. So we've seen from many scenarios in
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the EVM space that regulators can come in and freeze
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or seize assets on chain. So something malicious has happened,
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or they found out that this particular wallet is involved
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in money laundering, they can freeze the assets in that
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particular wallet and stop it from moving. Or maybe there
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is a hack and they've identified the hacker's wallet and
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they're trying to move their particular asset out. They can
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move in and freeze that particular wallet too. So in
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those situations, it's really good. So you know that there
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are ways to freeze those assets, seize them, and hopefully
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get them back to their rightful owner. So freeze and seize,
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kind of a good thing, but it also gives potential
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government overreach to say, I don't want anyone here to
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be able to move this particular asset. Or because I
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want you to spend your money that is being paid
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into your account, I'm going to take some of it
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out of your account and move it to my own
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over time unless you spend it. So there's pros and
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cons about this. I really don't see that scenario of
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government overreach issuing like an Australian stable coin and coming
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in and saying, we need to spend money, stimulate the economy.
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and get the economy running, so we need you to
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spend the money instead of saving it. Those types of
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situations I can't see happening, especially not in the economy now.
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We want to save, we want to slow spending. But anyway,
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the whole friction point here, the whole idea here is
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that we can now have programmable assets within the Kadana ecosystem.
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Now the big question is, why do you want this?
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I think I've painted it pretty clearly over explaining all
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these different scenarios. To be able to issue real world
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assets on Cardano, we need to be able to play
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in that regulated space. So if you're issuing a stock,
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you're issuing real world assets, whatever it is, they're all
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regulated assets and you have to comply with the rules
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and compliance that the government and jurisdictions have around having
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those assets. And we're seeing, like I said earlier, these
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other chains onboarding billions of dollars of RWAs onto their chain.
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And it's only possible because of these programmable aspects of
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those particular tokens. Keeping those tokens safe and compliant with
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all the regulations within their jurisdictions. Now, if Cardano has this,
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we can play in that same space. We can actually
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issue these RWAs just like the other chains. Now, the
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really important thing here is that it is now a
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standard within the Cardano ecosystem. So we've recently had the
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announcement that FiveBlocks is coming into the Cardano ecosystem and
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launching there. which is great, fantastic. We have institutional, custodial,
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really secure way of holding assets and having all the
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policies around virtual assets as well. But if we were
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to not have a certain standard for programmability of these assets,
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we would have had 50 different ways of doing this.
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Like we've seen this in the Katana space in general.
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We've had different ways of minting NFTs. We had different
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ways of doing swaps and whatnot. We didn't have a
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clear standard, one way to do it. The best way
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to do it, now we do with programmable assets. And
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that can be implemented into Fireblocks so that any asset
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that comes into that ecosystem, which it will have to
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when you're looking at billions of dollars worth of assets,
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we have a clear integrated way to make that happen.
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So hopefully I've made that really clear about what this
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is all about and why it's so important for the
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Kadana ecosystem. And it's something really big to celebrate. It's
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come a long way. I did demos of this years
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back when Matteo from Fluid Tokens and Michele from Harmonic
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Labs were playing around with the initial concepts here. And
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they did a proof of concept on-chain and showed how
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it could possibly work. I know Phil from Anastasia Labs
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had done a massive amount of work in the original
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SIP proposal. as well as all these other developers and contributors,
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Easy One, Easy Staking, and all these other developers. They've
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contributed so much over the years to get it to
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this point. So first off, thank you so much for
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all the developers for making this all happen. Without you guys,
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we wouldn't be where we are right now. And now
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other developers and dApp builders and wallet providers, they're now
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taking this on board and implementing the next stage of this.
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And from there, we'll start seeing companies issue real world assets.
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We'll see Pokemon trading cards. We'll see tokens, stocks, whatever.
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All that stuff come onto the Kadano ecosystem because of this. Right, guys.
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If this isn't bullish news, I don't know what is.
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So if you like this, make sure you hit that
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thumbs up, like, subscribe, notification bell, More positive news for
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you guys coming up next week. I'll be at Token
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2049 reporting from there, so I can't wait to show
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you what's happening in that space. And also guys, check
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out my brand new app, my Chat Soon app. That's
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a networking app that allows you to capture details and
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follow up on those particular leads that you meet at
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these real world events, the in real life events. So
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do check out that app. I'd love to get some
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support and get that one over the line because it's
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still in beta stage and I need more testers to
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get it out of the closed testing beta and also
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a little bit more feedback on the iOS version as well.
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I'd like you guys to check it out as well.
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Anyway guys, lots of ways to support the channel down below,
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YouTube memberships and buy me a coffee links there. Terrible
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at pointing out the buy me a coffee link. Support
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me that way as well. Great way to support the channel.
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Stay positive guys and I'll see you in the next video.
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All right, guys, this one is fairly important and has
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a big impact for Cardano. And let me break it
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down for you guys so you actually understand what's going on.
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So Cardano has merged Cardano Improvement Proposal 113 into the
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Cardano Improvement Proposal repository. So it's a move forward to
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getting this proposal integrated into the Cardano ecosystem. There's been
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code and proof of concepts done over the years But
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it's been quite a lengthy process to get to where
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it is now. And this is so important for Cardano's
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future in real world assets, tokenized assets and stable coins.
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And this is all around programmable tokens, being able to
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put rules around how a token is issued, how it's spent,
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who can spend it and where it can be spent
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and sent to. So this is highly important. It's available
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on the EVM space for a long time. because of
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the quirks that EVM had, it made it possible. But
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now within the Kadano ecosystem, we have this too. So
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let's go into the details here. So the SIP113 is
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merged into Kadano's improvement proposal repository. Now this doesn't mean
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it's on chain and working right now. You can fire
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up a Kadano wallet and smart contracts or whatever and
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start using it. That isn't quite the case yet. There
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still needs to be work done to implement it through. Although,
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there are some wallets and projects that have been proactive
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and have already implemented this into their wallets and ecosystem,
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such as Gero Wallet. They're always ahead of the game
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there and some brilliant developers behind that ecosystem. So great
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stuff to hear. But let's have a look at what
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this proposal actually does for the Cardano tokens in general.
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So normally a Cardano token, it doesn't have any controls
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around it. When you create a Cardano native asset, a
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token itself, You can move it freely. There's no controls
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behind it. You can't say this wallet can't send it
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to an exchange. You can't say the wallet can't be
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used in a mint or anything like that. So there's
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no restrictions. There's no control. You are free to do
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whatever you want with a token within the Cardano ecosystem.
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But then this creates issues when you are looking into
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regulated assets. So if you want to mint a stablecoin or...
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shares in a company or a property or tokenize some stocks,
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anything around that, all of those types of assets are
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regulated and they can't be sent to an unauthorized person.
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They can't be sent to a sanctioned country. You can't
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allow certain people that aren't sophisticated investors to be able
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to touch those assets. So there's a whole bunch of
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rules here for the regulated space. And we've seen Other
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ecosystems absolutely skyrocket in the RWA space, the real world
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asset space, because they have these mechanisms in place. So
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Cardano doesn't have it, but now it does. And that
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is the big difference here and why programmable assets are
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so important. So a really easy way to think about
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this is that the SIP113 gives a set of rules
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in regards to how a token can be used and
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what it can actually do. So let's say I, Peter,
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want to send Bob a hundred of token XYZ. The
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blockchain will run some rules. It will check. Can Peter
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send this particular token? Is Bob allowed to actually receive
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this type of token? Are any of the wallets involved
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here on a particular deny list? Is anyone actually even
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allowed to transfer this token at all? And if it
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passes all those rules, then yeah, sure, the token, the
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transfer goes through. But if it doesn't, then the transfer
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doesn't happen at all and those particular assets can't move.
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The transaction actually fails. Now let's take a stablecoin example.
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Let's say someone wants to create a stablecoin on the
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Kadano ecosystem. The company that is issuing the stablecoin would
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have to ensure that they comply with sanctioned wallets. They
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can't allow these sanctioned wallets or wallets from certain countries
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to be able to receive or send that USD stablecoin.
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with the SIP 113 in place, you can put in
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these particular rules to comply with this type of regulation. Now,
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if I want to send $ 1, 000 of this particular stable
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coin to Bob, it will go through and check if
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my wallet and Bob's wallet are under the sanctioned list.
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And because we're not, then that transfer go through. But
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if for some reason Bob's wallet was under a sanctioned list,
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When I try and do that transfer, it doesn't go through.
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It gets blocked. Now, this doesn't block other assets in
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my wallet. It only blocks that programmable token. So if
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my wallet, for example, had ADA, a whole bunch of
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NFTs and some other Kadano native tokens that aren't under
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the programmable type, I can still move those freely. I
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can move them anywhere I want. I can still send
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them to Bob, even though they're under a sanctions list.
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And that's totally fine. It's just that particular USD stablecoin
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that was issued under SIP 113 that can't be moved
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because it's complying with the rules that were applied to it.
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Now imagine the real world asset or tokenized asset type
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of scenario here. So let's say a company issued 20
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million of a particular real world asset. Let's say it's
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a property. And now they are looking into tokenizing all
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that and allowing people to buy assets tokenized stocks of
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that particular property. So there's companies in Australia that do this.
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There's one in particular called Brick and they allow their
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customers to buy a brick essentially of that particular property.
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I think it's a pretty cool idea. Now, the people
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that are buying those bricks have to be registered within
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their platform. They have to go through the full KYC
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process and be a registered, sophisticated investor and allowed to
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actually trade through their platform. So now there are a
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whole bunch of rules behind that that need to be checked.
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So I can't, as a holder of those particular assets,
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the $ 20 million property, I can't send it to a
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random person that isn't on the verified owner's list. And
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I can't buy them if I'm not on that list either.
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So these are the type of rules that we can
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put in place to comply with all the regulations around it.
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And it makes it a lot easier when you actually
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have this programmability within the token itself. And this also
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goes into the whole KYC process, know your customer. So
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for example, some tokens or assets, you may not be
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able to buy them in a particular country because they
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don't have the regulations or they don't comply with the
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regulations there. So if you're going through a platform and
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trying to buy a particular token, it won't let you
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because of that KYC process and it hasn't been validated
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and you can't get on the list. So it allows
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for all those types of situations too. Now, the downside
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to this, or not really a downside, you may think
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of it as a downside if you're a full decentralized
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crypto type of person, but it's the freeze and seize
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aspects of this. So we've seen from many scenarios in
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the EVM space that regulators can come in and freeze
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or seize assets on chain. So something malicious has happened,
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or they found out that this particular wallet is involved
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in money laundering, they can freeze the assets in that
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particular wallet and stop it from moving. Or maybe there
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is a hack and they've identified the hacker's wallet and
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they're trying to move their particular asset out. They can
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move in and freeze that particular wallet too. So in
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those situations, it's really good. So you know that there
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are ways to freeze those assets, seize them, and hopefully
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get them back to their rightful owner. So freeze and seize,
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kind of a good thing, but it also gives potential
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government overreach to say, I don't want anyone here to
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be able to move this particular asset. Or because I
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want you to spend your money that is being paid
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into your account, I'm going to take some of it
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out of your account and move it to my own
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over time unless you spend it. So there's pros and
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cons about this. I really don't see that scenario of
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government overreach issuing like an Australian stable coin and coming
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in and saying, we need to spend money, stimulate the economy.
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and get the economy running, so we need you to
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spend the money instead of saving it. Those types of
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situations I can't see happening, especially not in the economy now.
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We want to save, we want to slow spending. But anyway,
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the whole friction point here, the whole idea here is
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that we can now have programmable assets within the Kadana ecosystem.
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Now the big question is, why do you want this?
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I think I've painted it pretty clearly over explaining all
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these different scenarios. To be able to issue real world
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assets on Cardano, we need to be able to play
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in that regulated space. So if you're issuing a stock,
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you're issuing real world assets, whatever it is, they're all
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regulated assets and you have to comply with the rules
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and compliance that the government and jurisdictions have around having
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those assets. And we're seeing, like I said earlier, these
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other chains onboarding billions of dollars of RWAs onto their chain.
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And it's only possible because of these programmable aspects of
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those particular tokens. Keeping those tokens safe and compliant with
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all the regulations within their jurisdictions. Now, if Cardano has this,
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we can play in that same space. We can actually
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issue these RWAs just like the other chains. Now, the
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really important thing here is that it is now a
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standard within the Cardano ecosystem. So we've recently had the
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announcement that FiveBlocks is coming into the Cardano ecosystem and
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launching there. which is great, fantastic. We have institutional, custodial,
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really secure way of holding assets and having all the
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policies around virtual assets as well. But if we were
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to not have a certain standard for programmability of these assets,
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we would have had 50 different ways of doing this.
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Like we've seen this in the Katana space in general.
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We've had different ways of minting NFTs. We had different
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ways of doing swaps and whatnot. We didn't have a
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clear standard, one way to do it. The best way
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to do it, now we do with programmable assets. And
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that can be implemented into Fireblocks so that any asset
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that comes into that ecosystem, which it will have to
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when you're looking at billions of dollars worth of assets,
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we have a clear integrated way to make that happen.
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So hopefully I've made that really clear about what this
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is all about and why it's so important for the
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Kadana ecosystem. And it's something really big to celebrate. It's
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come a long way. I did demos of this years
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back when Matteo from Fluid Tokens and Michele from Harmonic
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Labs were playing around with the initial concepts here. And
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they did a proof of concept on-chain and showed how
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it could possibly work. I know Phil from Anastasia Labs
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had done a massive amount of work in the original
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SIP proposal. as well as all these other developers and contributors,
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Easy One, Easy Staking, and all these other developers. They've
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contributed so much over the years to get it to
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this point. So first off, thank you so much for
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all the developers for making this all happen. Without you guys,
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we wouldn't be where we are right now. And now
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other developers and dApp builders and wallet providers, they're now
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taking this on board and implementing the next stage of this.
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And from there, we'll start seeing companies issue real world assets.
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We'll see Pokemon trading cards. We'll see tokens, stocks, whatever.
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All that stuff come onto the Kadano ecosystem because of this. Right, guys.
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If this isn't bullish news, I don't know what is.
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So if you like this, make sure you hit that
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00:12:31.690 --> 00:12:36.039
thumbs up, like, subscribe, notification bell, More positive news for
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00:12:36.080 --> 00:12:39.600
you guys coming up next week. I'll be at Token
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00:12:39.600 --> 00:12:42.360
2049 reporting from there, so I can't wait to show
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00:12:42.379 --> 00:12:45.679
you what's happening in that space. And also guys, check
208
00:12:45.740 --> 00:12:49.179
out my brand new app, my Chat Soon app. That's
209
00:12:49.200 --> 00:12:53.000
a networking app that allows you to capture details and
210
00:12:53.080 --> 00:12:56.080
follow up on those particular leads that you meet at
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00:12:56.220 --> 00:13:00.019
these real world events, the in real life events. So
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00:13:00.539 --> 00:13:02.320
do check out that app. I'd love to get some
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00:13:02.340 --> 00:13:04.379
support and get that one over the line because it's
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00:13:04.659 --> 00:13:06.899
still in beta stage and I need more testers to
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00:13:06.940 --> 00:13:09.899
get it out of the closed testing beta and also
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00:13:09.919 --> 00:13:12.179
a little bit more feedback on the iOS version as well.
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00:13:12.259 --> 00:13:13.799
I'd like you guys to check it out as well.
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00:13:14.240 --> 00:13:16.830
Anyway guys, lots of ways to support the channel down below,
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00:13:16.850 --> 00:13:20.889
YouTube memberships and buy me a coffee links there. Terrible
220
00:13:20.909 --> 00:13:22.970
at pointing out the buy me a coffee link. Support
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00:13:22.990 --> 00:13:25.129
me that way as well. Great way to support the channel.
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00:13:25.509 --> 00:13:27.490
Stay positive guys and I'll see you in the next video.
