Amos Meiri: Where Value Is Going in Blockchain Networks – CoinDesk – CoinDesk
When predicting how the cryptocurrency economy will evolve, many people have looked to the start of the internet itself. They imagine certain standards or protocols becoming dominant, with value accruing in the application layers.
But cryptocurrencies are different.
Amos Meiri is an angel investor in the crypto space, the Co-Founder of the Colored Coins protocol (2012), Colu.com, a board member at Horizen and a strategic adviser to the Algorand foundation.
Value is captured within a coin’s economy rather than just its code and the way an application is monetized. In addition, value (measured by price and market cap) keeps moving from Layer one (L1), like Bitcoin and Ethereum, to Layer two (L2) and application protocols that are being built on top of L1, like Cosmos, Hiro and Uniswap.
With full interoperability, and with blockchain agnostic protocols such as The Graph, L1 blockchains may become just rails with fees attached. Most value will move into agnostic protocols and use-specific blockchains.
To understand where value is being captured and on what layer it is being created, it’s useful to review the evolution of L1 and L2 over the last decade.
One coin to rule them all (2011–2015)
That was the approach of Bitcoiners in the early days, myself among them. There was one blockchain and one platform to power all digital asset use cases and applications.
These Blockchain Projects Should Be On Your Radar – Entrepreneur
8 min read
Opinions expressed by Entrepreneur contributors are their own.
As the blockchain economy continues to grow, new projects are emerging and working to make their mark in the space. With the total market capitalization of all cryptocurrencies recently surpassing $1.5 trillion, there is a lot of room within the industry to grow. One example is the decentralized finance (DeFi) movement, which emerged into the mainstream eye in 2020 and grew to over $50 billion in market cap. This recent run has proven that the market will reward innovative and functional blockchain technology projects, which promise disruption.
Below we will identify 10 of the most groundbreaking blockchain projects and applications currently launching and scaling, with some positioning themselves to be the cornerstone of a new generation of digital asset heavyweights.
DAFI Protocol empowers web3 and DeFi protocols with the ability to reward their early adopters and devoted users in the way that they are meant to be. Upon integration with DAFI, protocols will have the power to distribute synthetic versions of their token as rewards to their early adopters in a truly elastic manner, based entirely on network demand correlation.
DAFI’s game-changing feature is in its ability to translate network demand-volatility with token reward supply-volatility. This means that the number of token rewards in user wallets automatically increases or decreases based on real network demand. These supply adjustments, otherwise known as “rebases”, seek to Source…
Blockchain-Based Decentralized Exchanges Are Growing, But There Still Are Significant Risks – Forbes
In the aftermath of the hearings connected to GameStop GME trading volatility, what is the potential for decentralized exchanges (DEXs) to go mainstream?
Specifically, questions are being asked about market access, the differences between how individual and institutional investors can access the marketplace, and the role of centralized third party entities in this process. One topic that has continuously come to the forefront of market conversations is the potential for decentralized trading, and how blockchain can help enable this idea become reality.
In other words, how can blockchain assist in the development of decentralized trading platforms, and what are some of the risks that market participants need to be aware of regarding this idea?
At first glance there is definitely some upside, but there are also examples – including the SushiSwap issues (which in turn was based on a clone of the popular DEX Uniswap) – illustrating that while innovative, there is still work to be done to improve these applications. Let’s dig in.
I’m cryptoenthusiast, and I like FreeTON. I think that it’s the coolest digital project now and in the future
And so, to begin with, let’s go back to grade 8 in social studies and find out what society is, as a complex system:
A system is a collection of interacting and interconnected elements that form a single whole.
It also includes the following characteristics:
I can tell you in all seriousness that these characteristics are guaranteed to fit decentralized blockchains.
Now I will try to describe what each word means in society, as a system, and I will try to connect them with decentralization in simple words. Go:
Self-developing – this means that the system develops itself at the expense of internal resources. That is, in society there are some elements, people, relationships between people, and people themselves push society towards development.
How can this be related to decentralized blockchains?
Let’s take, for example, any blockchain that is actively developing now, for example Free TON:
The same characteristic can be rewritten to the blockchain and will fit well: “A self-developing system means it develops at the expense of internal resources, namely, thanks to active community members who popularize the product, thanks to network validators that maintain uninterrupted operation, thanks to programmers creating new applications and updating old. That is, Source…
What Happens When Cryptocurrencies Earn Interest? – Harvard Business Review
Cryptocurrencies have long been heralded as the future of finance, but it wasn’t until 2020 that it finally caught on to an old idea: making money with money. In the crypto world, decentralized finance (or DeFi) encompasses a wide array of blockchain-based applications intended to enhance cryptocurrency holders’ returns without relying on intermediaries — to earn the kind of passive returns an investor might get from a savings account, a Treasury bill, or an Apple Inc. bond.
The idea seems to be catching fire: Deposits in DeFi applications grew from about $1 billion in June to just under $40 billion by late January 2021, suggesting that DeFi could be a major element of crypto from here on out. In the tradition of disruptive innovations — as Clayton Christensen envisioned them — DeFi can be the evolution of blockchain technology that might launch it into mainstream.
The premise of DeFi is simple: Fix the longstanding inefficiency in crypto finance of capital being kept idle at a nonzero opportunity cost. Now, most investors buy crypto with the hope that the value of the currency itself will rise, as Bitcoin has. In general, that strategy has worked just fine. The value of cryptocurrencies has appreciated so rapidly that there just wasn’t much incentive to worry about gains of a few percent here and there.
But the recent rise of stablecoins, which are designed keep their value constant, has changed that calculation. The combined market cap of stablecoins such Source…
The bitcoin blockchain is helping keep a botnet from being taken down – Ars Technica
When hackers corral infected computers into a botnet, they take special care to ensure they don’t lose control of the server that sends commands and updates to the compromised devices. The precautions are designed to thwart security defenders who routinely dismantle botnets by taking over the command-and-control server that administers them in a process known as sinkholing.
Recently, a botnet that researchers have been following for about two years began using a new way to prevent command-and-control server takedowns: by camouflaging one of its IP addresses in the bitcoin blockchain.
Impossible to block, censor, or take down
When things are working normally, infected machines will report to the hardwired control server to receive instructions and malware updates. In the event that server gets sinkholed, however, the botnet will find the IP address for the backup server encoded in the bitcoin blockchain, a decentralized ledger that tracks all transactions made using the digital currency.
By having a server the botnet can fall back on, the operators prevent the infected systems from being orphaned. Storing the address in the blockchain ensures it can never be changed, deleted, or blocked, as is sometimes the case when hackers use more traditional backup methods.
“What’s different here is that typically in those cases there’s some centralized authority that’s sitting on the top,” said Chad Seaman, a researcher at Akamai, the Source…
Decentralized Finance Will Change Your Understanding Of Financial Systems – Forbes
Authors: Benedikt Eikmanns, Prof. Dr. Isabell Welpe, Prof. Dr. Philipp Sandner
Decentralized Finance (DeFi) is likely to have a significant impact on how banks operate in the future – and even has the potential to shift the structure of the whole financial system at a macroeconomic level. Before we discuss and substantiate this hypothesis, we would first like to introduce the core concept of DeFi.
Decentralized Finance or “DeFi” in short, is an umbrella term encompassing the vision of a financial system that functions without any intermediaries, such as banks, insurances or clearinghouses, and is operated just by the power of smart contracts. DeFi applications strive to fulfill the services of traditional finance (also coined as Centralized Finance, or just CeFi) – but in a completely permissionless, global and transparent manner.
DeFi applications could be at the verge of challenging traditional finance actors on various fronts
The vision of a new financial system accompanies the blockchain space since its inception. However, while it has been an aspirational dream for the blockchain community in the past, the vision of a new financial system has come some steps closer.
Cryptocurrency analyst. Founder and editor at btcpeers.com
It has been an impressive year for cryptocurrencies. From Bitcoin soaring to as high as $41.9k in early January 2021, to Ethereum rising above its Jan 2018 high, and Cardano reaching a new three-year high, investors are upbeat.
The impact of regulators is also being felt. Ripple (XRP) prices may be recovering. However, the United States Securities and Exchange Commission (SEC) alleges that the native currency of the XRPL, XRP, is a security. Ripple, a for-profit company, promises to fight back, explaining that it is a utility just like ETH and BTC.
Admittedly, cryptocurrency as a new asset class leverages an emerging technology, the blockchain. The sphere currently commands billions in market cap, and institutions are interested. Nonetheless, there is more to be done, especially on consensus refinement, decentralization, and efficiency.
Bohdan Prylepa is the Chief Operating Officer (COO) and co-founder of Prof-it Blockchain Ltd. In today’s interview, we’ll pick Bohdan’s mind and get his view on crypto, decentralization, and the impact of regulation on consensus algorithms. We’ll also touch on Ethereum, DeFi, and the future of blockchain.
A New Year, A New Age, Bitcoin at over $30k? What Do You Think is Driving this Rally?
Traditional enterprises rely on a centralized closed-door structure. In contrast, decentralized finance projects are being built with the ethos that governance should be decentralized and democratic. Transitioning society to decentralized platforms can make many services safer, more accessible and more transparent than ever before. The increasing interest in the space speaks to a collective desire to have more control over critical elements of our lives, especially our finances.
While decentralization helps to solve issues like transparency and efficiency, the lack of a trusted central authority means that decentralized applications, or DApps, must rely on third parties to supply data to execute transactions or application functionalities such as taking out a loan. Access to reliable, trusted information such as price feeds, real-world events and identification, among many others, underpins the reliability, strength and efficiency of a decentralized application.
The security to protect this data comes from an oracle solution that is able to reliably and effectively connect real-world and off-chain information with decentralized applications and smart contracts in a verifiable, manipulation-resistant manner. With more than 1 million regular users of DApps globally, there is a huge demand for reliable data external Source…
The perils of a decentralized web living in the centralized world – Cointelegraph
On Jan. 26, the internet came to a screeching halt along much of the East Coast. Email services went down; YouTube videos flickered out midstream; millions were likely affected, if only temporarily. But the outage, attributed to a surge in traffic, underscores the metastasizing vulnerabilities surrounding the way most of the world conducts commerce, consumes entertainment and communicates.
The implications of such outages should be seen as particularly alarming for those in cryptoland: namely, for the ever-growing numbers of participants in an emerging decentralized ecosystem for transferring peer-to-peer value with Bitcoin (BTC) who build smart contracts on Ethereum or launch any number of platforms and tokens that perform untold numbers of functions and services.
Indeed, such outages highlight a serious challenge to building the hoped-for future of a decentralized web that is more secure, reliable and safer.
Every time Gmail or Telegram goes down because of such disruptions to the existing web, it’s a reminder of how exposed this emergent decentralized world is to centralized vulnerabilities. And it’s something of an Achilles heel that has yet to be satisfactorily addressed.
In short, the full blossoming of blockchain and other decentralized systems depends on the reliability of an existing web architecture that is not only highly centralized but also in need of a facelift.
Internet: The beauty and the beast
As beautiful as the original architecture of it — and, believe me, it is beautiful — the internet as we know it has Source…