By Dr MACHARIA WARUINGE

Finance is the basic preoccupation of the financial systems including central banks, commercial banks and lending agencies. By finance we mean lending borrowing and trading of money.

The finance system traditionally lends out money to borrowers who pay back the money the borrowed at an interest. In order for the banks to lend money, they have to obtain money by savings of depositors.

That money is concentrated by the finance organization that lends the money out to borrowers who have to deposit a collateral document to act as a lien against the borrowed money. In this way the finance organization acts as the middle- man between the lender and the borrower. This is the system of centralized finance that we have been used to.

Enter decentralized finances

The movement towards decentralization of finance started about a decade ago with the inception of Bitcoin soon after his publication of landmark article “bitcoin a peer- to-peer cash system” and the deployment of the cash system itself on the bitcoin blockchain.

Deployment of bitcoin heralded the onset of decentralized money. In its full flower blockchain money would remove the centralized finance organizations and allow any individual to transact with any other individual without going through a middle- man institution. Bitcoin, the cryptocurrency issued by an algorithm written on blockchain became the first iteration of decentralized finance (DeFi).

The advent of Ethereum in 2015, a blockchain by itself written in general purpose language enabled many different people to build cryptocurrencies. Many innovative individuals created financial solutions such as Ubricoin cryptocurrency and even more advanced solutions such as automated market makers including Uniswap, Sushi swap, Pancake swap and the like.

The automated market makers protocol completely remove the middlemen financial organizations in creating liquidity pools which enables individuals to lend money to each other, to borrow from each other and to buy and sell financial risk directly in the money markets without intermediaries.

These automated market making protocols individuals anywhere and everywhere, with the use of a cellphone can participate in global money markets. At this point, finance became completely decentralized. This complete decentralization of money opens up capital to the entire planet, enabling people to capitalize their financial assets throughout the world.

This decentralized finance is a big step towards resolving the mystery of capital described in Hernando De Soto in his book “Why Capitalism triumphs in the West and fails everywhere else”.

Another mind-bending information is decentralization of non -fungible pieces of work like music art photography and the like by using blockchain to mint these pieces of art into non fungible tokens, which are then supplied into a huge global market for people to buy. Creators everywhere in the world are minting tokens for their works of art and generating revenue by selling those tokens in open markets on the internet also by passing the traditional middlemen who used to siphon money from them.

Minting non fungible tokens also helps to bypass the copyright theft problems that producers of regional work used to face. Individuals anywhere and everywhere can now display their works and generate revenue through the markets without fear of their products being pirated.

Individual human as the ground state

Decentralized finance completely recognizes the supremacy of every individual human as a source of action. Decentralized finance is a recognition of human action and completely overthrows the traditional centralized aggregates managed by middlemen as the ground state. Every individual human being is the ground state and this orientation also completely aligns with the process of health. Health occurs in every individual.

An individual can have good health or bad health. Health therefore is produced at the individual level by the individual human being. Production of health in an individual relies upon availability of good quality substrates that are assembled - together as health producing units in any individual human being.

This good quality health producing substrates are known as nutrients which come from food which cost money. Every human being has got his or her own capacity of gathering then consuming and assembling health units as an individual. This ability does not depend on a central organization but on a highly decentralized code made up of basis that is embedded in the nuclear of every individual human on a sugar- phosphate backbone called the DNA, Deoxyribo-nucleic Acid.

Health or disease production by the DNA is completely decentralized. Diversity is the hallmark of DNA across all populations of humans and other living things. This extreme diversity completely corresponds with extreme diversity of blockchain transactions. This indicates that decentralized health must correspond with a decentralized finance. This means that if we have to produce health that is already decentralized, we need decentralized money.

DeFi removes the global burden of disease

The global burden of disease is calculated as the number of years of life lost due to disease and disability, shortened life expectancy and reduced quality of life and ultimately inability to execute ordinary and instrumental activities of daily living. This burden emerges largely because of lack of money. 

People without money are unable to assemble the right substrate to produce health to remove this burden of disease. Poverty is positively co related with increase in burden of disease. Increased poverty co relates directly with increased burden of disease. In this case, the arrow of cosality points from lack of money to increase occurrence of disease. For example, in countries where poverty is rampant in Africa the burden of disease is also the highest in the world.

The prevailing centralized finance has had no effect on this burden of disease precisely because the occurrence of disease is decentralized, and therefore centralized financial administration is incongruent with decentralized occurrence of disease. The advent of decentralized finance initiates for the first time ever in the history of mankind the possibility of attacking the occurrence of disease and demolishing the global burden of disease.

Ubricoin is an ERC 20 token built on Ethereum protocol. Its a decentralized token created to remove the global burden of disease. Created in Nairobi, with a single purpose to produce health Ubricoin has found multivarious ways of debulking the burden of disease by increasing wealth, wellness and wellbeing.

As a cryptocurrency Ubricoin can be traded to create its present value in both centralized and decentralized exchanges. Ubricoin participates well in the decentralized finance money market- places such as Uniswap (uniswap.org) Sushi Swap, Pancake Swap and the like. This means that holders of Ubricoin can supply to this decentralized market for lending/borrowing/staking to create future value.