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We continue from our article last month delving into the history of the traditional financial system, and how society’s progression and technology advancements over the course of time were required to shape the institution we know it as today. As we trace the advancements within the industry, we consider the implications for the new horizon we see today: digital assets. Will the history books look back to this time and see it as the natural evolution of the financial market or the takeover of a new industry?

Dematerialization

One persistent centralizing bottleneck in the traditional landscape was the markets’ dependence on paper to confirm trades and transfer stock ownership. Emerging electronic trading techniques would only be as efficient as the back-office processes supporting them. This rapidly drove the dematerialization of stocks, replacing paper certificates with electronic book-entry systems. London’s CREST system achieved this for the most liquid UK stocks in 1996, with dematerialization programmes continuing in global markets to this day. …

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Last year’s global pandemic, extensive lockdowns, and resulting market volatility — one of the biggest recessions on record followed by one of the fastest recoveries — were unprecedented, with the result that no one can be sure of what to expect in the new year.

That said, in the technology world some trends are clear: with millions under lockdown in their homes, the value of resilient internet-based access was reemphasised. And for cryptoassets, token price volatility driven by global markets disruption and the uncertainty generated by concerns about pump-and-dump scams answered long-standing questions about whether cryptocurrencies are a safe-haven asset — and they are not. …

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Revisiting Key Moments in 2020

Covid-19 sent 2020 down the rabbit hole, altering our day-to-day lives, changing the pace and working habits of all of us around the world. But time stops for no one, and 2020 has seen some amazing work done in the digital asset space.

Our team likes to gather at the end of every year and take the time to reflect on some of the milestones that marked the last 12 months — for the industry, our partners and the space we work in. Which were the headlines that stuck out to us? …

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We’re pleased to announce that IJS Technologies has received a grant from OAX Foundation for their community-driven open source DeFi swap platform. The OAX Foundation sees true potential in this company and their approach to addressing the challenges being faced by the current digital asset swap landscape.

At OAX Foundation, we truly believe in digital assets and the future it could play in the mainstream financial system. Despite all the discussions that surround the topic today, we’re simply scratching the surface of its potential. The Foundation remains open to exploring all areas within this space, and one way to do so is by supporting the community around us. …

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In the distant past, various forces drove markets to centralize: the need for people to transact goods face-to-face via auction or ‘open outcry’, receive payment and make physical delivery, and the need to guard against fraud or non-delivery through a system of rules and enforcement. Part of this early regulation included the requirement to ensure fairness by displaying prices to participants so that buyers and sellers got fair value — and the beneficial by-product of this process was liquidity, or the ability to buy or sell in bulk and realize economies of scale.

The history of financial trading markets is a long evolutionary process punctuated by technological milestones which accelerated growth and sophistication. It’s also a story in two broad phases: first, centralization as its institutions were molded by market forces, followed decentralization enabled by technological advances. Along the way, markets developed functions to support trading activity: clearing houses, settlement and delivery mechanisms, data providers — and regulations. …

We started off the month with the final update to our Testnet, which now includes all the features. Of course since we had the full set of features for our community to test, it was a perfect opportunity to see what everyone had to say. We hosted a small feedback campaign at the beginning of the month and thank you to those that took the time to go through everything with us!

We selected three winners to be given a small “token” of appreciation, congratulations!

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We’ve also been making gradual changes to our website, based on the feedback that we’ve gotten from a good portion of our members, and if you haven’t had the chance to see the changes that have been made, be sure to check it out. …

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Having completed his third paper earlier this year “Inhabiting different realities: incrementalism, paradigms and the New Prospect”, we asked Professor Syren Johnstone to share a follow up on his thoughts as we near the end of 2020.

OAX Foundation has long believed that the importance of supporting and encouraging the community to take part in these discussions is of utmost importance for the success of the digital asset space. We hope that Professor Johnstone’s work opens the door for fruitful conversation and debate, and look forward to the opportunity to support the community in the years to come.

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How financial regulation has altered the crypto-asset…

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Update: As of November 5, 2020, OAX Testnet has been updated to include Fee Delegation. Users can now go and test all our features here!

Update: As of October 27, 2020, OAX Testnet has been updated to include MultiTransfer.

Update: As of October 9, 2020, OAX Testnet has been updated to include Atomic Swap.

Having released our open code source last month, OAX is now releasing the first testnet for our parachain with the key features: PRC20 Token Standard and Burn. …

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Recent falls in indices tracking defi tokens have had commentators calling the imminent demise of DeFi. Some labelled it another bubble which has now burst. We would argue that news of DeFi’s demise are exaggerated: the DeFi proposition remains as sound as it ever was.

If we separate market fluctuations, driven by exogenous market factors, from DeFi’s inherent qualities, we see numerous reasons for confidence — and volatility shouldn’t deter participants from working on the applications that will keep driving the technology toward wider application. …

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Happy Halloween! Unfortunately trick or treating this year won’t quite be the same, but we’re finding our own way to pass out treats.

Community members took part in our little pop quiz last week based on our five feature highlight video, and a lucky 10 winners were chosen to receive USD 50 worth in tokens! Think you can answer all the questions correctly? Only if you watched our demo videos! We’ve posted our pop quiz at the end of this update, let’s see how you do. …

About

OAX

OAX is a new, decentralized, digital asset ecosystem initiative run by the “The OAX Foundation Limited”. Go to http://www.oax.org to learn more.

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