Challenges of Fiat based Monetary systems

• Legal Tender and Intermediaries: Traditional payments rely on legal tender currencies and existing payment networks. Smart contracts on Ethereum, while capable of incorporating data, cannot be directly settled, hindering their integration into the global economy.

• Limited dApp Support: The separation between smart contract execution and asset custody transfer limits dApp support. This dual-state process hinders seamless integration of on-chain logic into various applications.

• Trust and Intermediaries: Consumers must place trust in the current system, as off-chain services have limitations in leveraging on-chain logic for reverse operations. Intermediaries in financial institutions introduce security risks and compatibility issues, restricting access to services and users.

• Conversion Fees: Converting crypto assets to fiat currencies involves fees charged by intermediaries to cover operational costs. This results in a loss of value for users.

These challenges highlight the need for a more integrated and efficient solution that bridges the gap between traditional and on-chain payments.