- Dec 13, 2023
- 159
- 1
For a long time in the past, "consumption" and "finance" have always been regarded as two relatively independent systems. Consumption means spending, and finance means managing or amplifying funds. Even today, with credit cards, installment payments, and cashback points highly mature, this underlying logic has not fundamentally changed. Users consume, platforms and financial institutions profit, and the feedback they receive mostly stays at the level of convenience or short-term discounts.
But this structure is changing. The global consumer finance system is standing at a critical point of a deep reshaping. Changes in the interest rate environment, digitization of user behavior, maturity of blockchain technology, and rise of DeFi credit systems are jointly driving a new problem to surface. Can consumption only be a one-time expense, or can it be a behavior that can continuously produce results?
Coinsidings emerged in this context. It is not an attempt to optimize a certain Payment Instrument, but to rethink the "value destination of consumption" from a deeper level and attempt to build a system that allows consumption itself to participate in value creation and distribution.
The problem with traditional consumer finance is never just "insufficient tools".
If we look back at the development path of traditional consumer finance, we will find that its core goals have always revolved around two directions.
One is to lower the consumption threshold and make it easier for users to spend money.
Secondly, through the credit system, we can realize the future consumption ability of users in advance.
Credit cards, installment payments, and consumer loans are essentially tools that revolve around "advance consumption". They do improve transaction efficiency and to some extent promote economic activity level, but at the same time, they also expose a long-standing but overlooked problem: The value of consumption is almost entirely absorbed by platforms and Financial Institutions.
Under this structure, users' consumption behavior has obvious unidirectionality.
User consumption, platform commission; user repayment, bank interest; the so-called "points" accumulated by users are often not cross-platform or sustainable, and may even be cleared in rule adjustments.
The points system was originally designed as a tool to "reward loyalty", but in actual operation, it is more like a means for the platform to regulate profits and user behavior. Inflation of points, complex rules, and limited exchange make it difficult for them to truly accumulate long-term value for users.
More importantly, in the traditional consumer finance system, consumer behavior has never really translated into user productivity . Users are evaluated, graded, and credited, but they are always just "passive objects" in the system, rather than participants in the value system.
The'Structural Wall 'of Consumption and Finance
In the traditional system, the reason why consumption and finance are difficult to form a positive closed loop is essentially due to three reasons.
Firstly, consumer behavior cannot be fully and reliably recorded. Centralized platforms control data, but users cannot verify it, let alone take it away. Consumer records belong to the platform, not the user.
The generation of credit is highly centralized, resulting in credit being defined by banks or platforms, and users can only passively accept evaluation results, lacking participation space.
The logic of profit distribution is highly asymmetric. The long-term value generated by consumer behavior is continuously captured by platforms, financial institutions, or intermediaries, while users can only receive immediate incentives.
This structural wall keeps "consumer finance" in the stage of "Financial Services consumption" for a long time, and cannot evolve into a new form where "consumption itself has financial attributes".
Changes in Consumer Finance in the Web3 Era
Travel consumption is not a fragmented daily expense, but a behavior that occurs centrally, can be verified, and is highly tied to real assets. Hotels, resorts, and transportation facilities are real assets that can be operated, valued, and sustainably generate cash flow. At the same time, travel demand is closely related to population mobility and economic activities. Even in times of macro fluctuations, it will not disappear, only structural adjustments will occur. This makes travel a natural bridge connecting the real world with on-chain finance.
Based on this judgment, Coinsidings chose to start with travel consumption and redefine the role of consumption in the financial system. In Coinsidings' ecosystem, consumption is no longer seen as a one-time behavior, but is systematically transformed into a participation behavior that can be confirmed, accumulated, and transformed.
The key to this transformation lies in the introduction of "consumer computing power".
In Coinsidings, every real travel expense is recorded by the system and converted into computing power. The computing power here is not simply a cumulative amount, but a comprehensive behavioral indicator that includes consumption frequency, participation depth, and sustainability. The essence of computing power is the user's contribution certificate in the ecosystem, which is a quantitative expression of "participation rights".
This is fundamentally different from the traditional points system. Points are rewards given by the platform to users, which can be adjusted at any time; while computing power is the system's confirmation of user behavior. Once generated, it becomes a long-term asset for users in the ecosystem. Consumption truly possesses productivity attributes here for the first time.
Coinsidings redefines the role of "consumption"
In the Coinsidings ecosystem, consumption is no longer just a spending behavior, but is redefined as a participation behavior that can be confirmed, accumulated, and transformed .
The first thing the system does is not to label consumption as financial, but to transform consumption behavior into a "contribution" that can be understood and used by the system through technology and mechanisms. This is the concept of "consumption computing power" proposed by Coinsidings.
When consumption is transformed into computing power, the relationship between consumption and finance begins to undergo a qualitative change. Computing power is no longer just symbolic, but directly affects the level of rights and interests that users can participate in in the ecosystem. These rights and interests are not one-time rebates, but multi-dimensional and sustainable participation rights, including token incentives, asset dividends, ecosystem permissions, and eligibility to participate in future financial modules.
As a result, a complete consumer finance closed loop gradually takes shape.
Real consumption constantly generates computing power, which determines the depth of participation, and the depth of participation determines the income structure that can be obtained.
Consumption is no longer consumed, but precipitated; precipitation is no longer static, but continuously transformed.
More importantly, this closed loop does not rely on market sentiment or price fluctuations, but is based on real consumption and operational behavior. What users get is not an opportunity to bet on the future, but a systematic position that can accumulate results over time.
As consumer behavior is continuously recorded, validated, and accumulated into computing power, another deeper change is also occurring: consumption is becoming credit data. In the traditional system, credit establishment is slow, the threshold is high, and it is highly centralized; while in the Coinsidings ecosystem, credit comes more from continuous and verifiable behavior itself.
Consumer computing power is actually the embryonic form of behavioral credit. It does not rely on collateralized assets or identity labels, but is continuously accumulated from real behavior. When this system is further combined with DeFi modules, a broader space will be opened up between consumer credit, behavioral finance, and the financialization of real assets.
But this structure is changing. The global consumer finance system is standing at a critical point of a deep reshaping. Changes in the interest rate environment, digitization of user behavior, maturity of blockchain technology, and rise of DeFi credit systems are jointly driving a new problem to surface. Can consumption only be a one-time expense, or can it be a behavior that can continuously produce results?
Coinsidings emerged in this context. It is not an attempt to optimize a certain Payment Instrument, but to rethink the "value destination of consumption" from a deeper level and attempt to build a system that allows consumption itself to participate in value creation and distribution.
The problem with traditional consumer finance is never just "insufficient tools".
If we look back at the development path of traditional consumer finance, we will find that its core goals have always revolved around two directions.
One is to lower the consumption threshold and make it easier for users to spend money.
Secondly, through the credit system, we can realize the future consumption ability of users in advance.
Credit cards, installment payments, and consumer loans are essentially tools that revolve around "advance consumption". They do improve transaction efficiency and to some extent promote economic activity level, but at the same time, they also expose a long-standing but overlooked problem: The value of consumption is almost entirely absorbed by platforms and Financial Institutions.
Under this structure, users' consumption behavior has obvious unidirectionality.
User consumption, platform commission; user repayment, bank interest; the so-called "points" accumulated by users are often not cross-platform or sustainable, and may even be cleared in rule adjustments.
The points system was originally designed as a tool to "reward loyalty", but in actual operation, it is more like a means for the platform to regulate profits and user behavior. Inflation of points, complex rules, and limited exchange make it difficult for them to truly accumulate long-term value for users.
More importantly, in the traditional consumer finance system, consumer behavior has never really translated into user productivity . Users are evaluated, graded, and credited, but they are always just "passive objects" in the system, rather than participants in the value system.
The'Structural Wall 'of Consumption and Finance
In the traditional system, the reason why consumption and finance are difficult to form a positive closed loop is essentially due to three reasons.
Firstly, consumer behavior cannot be fully and reliably recorded. Centralized platforms control data, but users cannot verify it, let alone take it away. Consumer records belong to the platform, not the user.
The generation of credit is highly centralized, resulting in credit being defined by banks or platforms, and users can only passively accept evaluation results, lacking participation space.
The logic of profit distribution is highly asymmetric. The long-term value generated by consumer behavior is continuously captured by platforms, financial institutions, or intermediaries, while users can only receive immediate incentives.
This structural wall keeps "consumer finance" in the stage of "Financial Services consumption" for a long time, and cannot evolve into a new form where "consumption itself has financial attributes".
Changes in Consumer Finance in the Web3 Era
Travel consumption is not a fragmented daily expense, but a behavior that occurs centrally, can be verified, and is highly tied to real assets. Hotels, resorts, and transportation facilities are real assets that can be operated, valued, and sustainably generate cash flow. At the same time, travel demand is closely related to population mobility and economic activities. Even in times of macro fluctuations, it will not disappear, only structural adjustments will occur. This makes travel a natural bridge connecting the real world with on-chain finance.
Based on this judgment, Coinsidings chose to start with travel consumption and redefine the role of consumption in the financial system. In Coinsidings' ecosystem, consumption is no longer seen as a one-time behavior, but is systematically transformed into a participation behavior that can be confirmed, accumulated, and transformed.
The key to this transformation lies in the introduction of "consumer computing power".
In Coinsidings, every real travel expense is recorded by the system and converted into computing power. The computing power here is not simply a cumulative amount, but a comprehensive behavioral indicator that includes consumption frequency, participation depth, and sustainability. The essence of computing power is the user's contribution certificate in the ecosystem, which is a quantitative expression of "participation rights".
This is fundamentally different from the traditional points system. Points are rewards given by the platform to users, which can be adjusted at any time; while computing power is the system's confirmation of user behavior. Once generated, it becomes a long-term asset for users in the ecosystem. Consumption truly possesses productivity attributes here for the first time.
Coinsidings redefines the role of "consumption"
In the Coinsidings ecosystem, consumption is no longer just a spending behavior, but is redefined as a participation behavior that can be confirmed, accumulated, and transformed .
The first thing the system does is not to label consumption as financial, but to transform consumption behavior into a "contribution" that can be understood and used by the system through technology and mechanisms. This is the concept of "consumption computing power" proposed by Coinsidings.
When consumption is transformed into computing power, the relationship between consumption and finance begins to undergo a qualitative change. Computing power is no longer just symbolic, but directly affects the level of rights and interests that users can participate in in the ecosystem. These rights and interests are not one-time rebates, but multi-dimensional and sustainable participation rights, including token incentives, asset dividends, ecosystem permissions, and eligibility to participate in future financial modules.
As a result, a complete consumer finance closed loop gradually takes shape.
Real consumption constantly generates computing power, which determines the depth of participation, and the depth of participation determines the income structure that can be obtained.
Consumption is no longer consumed, but precipitated; precipitation is no longer static, but continuously transformed.
More importantly, this closed loop does not rely on market sentiment or price fluctuations, but is based on real consumption and operational behavior. What users get is not an opportunity to bet on the future, but a systematic position that can accumulate results over time.
As consumer behavior is continuously recorded, validated, and accumulated into computing power, another deeper change is also occurring: consumption is becoming credit data. In the traditional system, credit establishment is slow, the threshold is high, and it is highly centralized; while in the Coinsidings ecosystem, credit comes more from continuous and verifiable behavior itself.
Consumer computing power is actually the embryonic form of behavioral credit. It does not rely on collateralized assets or identity labels, but is continuously accumulated from real behavior. When this system is further combined with DeFi modules, a broader space will be opened up between consumer credit, behavioral finance, and the financialization of real assets.
