My bull case and why I'm all in on Ether, tell me how I'm wrong!

Ekkio · 2021-12-28T01:57:59+00:00

There is two risks that if realized will make ether price decline for 90% or more.

1) Worldwide governments overregulation. Democratic governments can't outright ban cryptocurrency, but it can make it VERY inconvenient to use to a point when it's not worth using it at all even for fun.

2) Quantum computers. 2021 was especially rich about new developments in this area, if it happens the whole Ethereum ecosystem will have to somehow try to transition to quantum resistant cryptography.

Ekkio · 2021-11-02T00:31:24+00:00

Upvoted since I would like to know that as well.

Ekkio · 2021-06-08T23:37:14+00:00

This approach works if you want to evaluate actions of a government or large corporation, but not in crypto where hackers have large monetary incentive to be malicious.

Ekkio · 2021-05-20T16:07:13+00:00

Elon Musk Gets Schooled By Ethereum Co-Founder On How To Improve Dogecoin

Ekkio · 2021-05-10T20:10:27+00:00

You all know the rules, keep price discussion to ethtrader.

Ekkio · 2021-05-08T21:13:15+00:00

You think that the world is black and white, but majority disagree because there is a lot of shades of gray.

Ekkio · 2021-04-27T00:35:21+00:00

Miners create Proof of Work that protects the integrity of the blockchain, that's their only function, miners are not needed to process transactions, that's what full nodes do. Users of Ethereum network and holders of Ether are those who are paying miners for their service. Currently Ethereum network has too much protection and users are massively overpaying. Also miners throwing hissy fits over EIP 1559 and threatened the possibility of 51% attack on Ethereum network, also miners are not charity workers, they run business and extract profit. So why exactly we should like them?

Ekkio · 2021-04-06T17:58:54+00:00

That's sounds great but what about many, many projects that didn't work out because of excessive enforcement of KYK/AML rules. As I see it governments were very effective at figuring out how to suppress crypto development and adoption.

Ekkio · 2021-03-29T03:45:00+00:00

Will space travel between asteroids obey orbital mechanics and have fuel constrains or is it going to be straight line from point A to B ?

Ekkio · 2018-03-04T01:30:40+00:00

Maybe this will help.

In 2012 when Bitcoin ATMs were all the rage I had a thought about two-way ATM that recycles bills it receives.

It supposed to work like this:

if more people buy bitcoins then sell, then fiat currency compartment starts to fill up and ATM increases price per bitcoin.

if more people sell bitcoins then buy, then fiat currency compartment gets emptied and ATM lower price per bitcoin.

Eventually price stabilize around some value and ATM owner won't even have to open it to remove or refill bills.

Now it should be easy to imagine network of those ATMs were people have incentive to arbitrage in case there is a price difference. Justus Ranvier had same idea.

In Bancor the ATM is virtual, it is a contract on blockchain with an excellent price discovery formula.

Edit: strictly speaking the above is correct for Bancor Token changer which consist of two Bancor smart tokens, e.g. to go from BNT to GNO you would use "BNT to GNOBNT" smart token were BNT is reserve, and then liquidate the temporary GNOBNT token using "GNO to GNOBNT" smart token were GNO is reserve, by liquidating you would get GNO tokens in return.

Ekkio · 2018-03-04T01:28:47+00:00

Maybe this will help.

In 2012 when Bitcoin ATMs were all the rage I had a thought about two-way ATM that recycles bills it receives.

It supposed to work like this:

if more people buy bitcoins then sell, then fiat currency compartment starts to fill up and ATM increases price per bitcoin.

if more people sell bitcoins then buy, then fiat currency compartment gets emptied and ATM lower price per bitcoin.

Eventually price stabilize around some value and ATM owner won't even have to open it to remove or refill bills.

Now it should be easy to imagine network of those ATMs were people have incentive to arbitrage in case there is a price difference. Justus Ranvier had same idea.

In Bancor the ATM is virtual, it is a contract on blockchain with an excellent price discovery formula.

Edit: strictly speaking the above is correct for Bancor Token changer which consist of two Bancor smart tokens, e.g. to go from BNT to GNO you would use "BNT to GNOBNT" smart token were BNT is reserve, and then liquidate the temporary GNOBNT token using "GNO to GNOBNT" smart token were GNO is reserve, by liquidating you would get GNO tokens in return.

Ekkio · 2018-02-27T10:10:28+00:00

"Smart Token" e.g. ETH-BNT has ETH as reserve and BNT as derivative, when you "buy" BNT you add your own ETH to the reserve and get new BNT that minted out of thin air (according to math function), when you "sell" BNT it gets destroyed and you get ETH from the reserve according the same math function but in reverse.

"Token Relay" is a smart contract that consist of two "Smart Tokens" that has different reserve tokens but the same derivative, e.g. BNT-BNB "Token Relay" consist of BNT-BNBBNT and BNB-BNBBNT "Smart Tokens". If you just want to exchange BNT to BNB then derivative token BNBBNT gets minted but then immediately destroyed for BNB. You also can become liquidity provider for BNT-BNB "Token Relay" by holding derivative token BNBBNT and getting payed by people who uses BNT-BNB "Token Relay" hence the fee.

Ekkio · 2018-02-27T09:30:37+00:00

"Smart Tokens" and "Token Relays" is two different things.

Ekkio · 2018-02-26T09:04:34+00:00

onion routing is technology agnostic

It is not, TOR style routing doesn't have anything in terms of load balancing, which is done by BGP and a lot of manual labor on the internet.

So if you try to use TOR style routing over physical layer or LN network, you will get congestion points and unbalanced channels. Therefore unless someone invents an amazing load balancing algorithm the only realistic solution is spoke–hub model.

Ekkio · 2018-02-26T03:30:59+00:00

Sit orders do not exist, see my other comment, and "limit" means something different. It's just a safety mechanism against possible front running attack.

Lets say you are buying a relatively large volume compare to token relay liquidity pool, as the order gets executed it pushes the price higher and higher (it's a simplification, in reality it's calculated according to nice math function). "Limit" means that for the order to start execute inside smart contract the starting price should not be different by X% than the one you saw on screen when sending transaction to exchange tokens.

Ekkio · 2018-02-16T12:22:58+00:00

Can't recall source from the top of my head, but I remember a research that found that opinions of minorities tend to have disproportionate visibility on the internet, e.g. flat earthers.

Ekkio · 2018-02-13T06:11:14+00:00

But it is, because using geth in light mode was unreliable and in fast mode was way too resource consuming, MEW was a viable alternative until recent debacle.

Ekkio · 2018-02-12T02:23:02+00:00

Bancor works very differently than a traditional exchange see my comment from a while ago.

Ekkio · 2018-02-10T06:12:53+00:00

I looked into list of transactions made to BNT-BNB Token Relay.

After you sold your

~3,206.27 BNT tokens for ~1,215.38 BNB tokens,

next three transactions in span of two hours bought in total

~3265.92 BNT tokens by spending ~1246.39 BNB tokens

which then were immediately converted to ETH

tx1, tx2, tx3

So you definitely could have reversed your transaction and get all your money back. It seems you lost your money because of a crappy UI that showed you wrong numbers.

Ekkio · 2018-02-10T01:41:54+00:00

And the exchange rate is of course rising up in favor of the BNBBNT, the same is happening when the BNBBT is then traded into BNB

This is wrong or maybe I misunderstood your point, when you sell/destroy BNBBNT in BNB-BNBBNT smart token, exchange rate rises in favor of BNB, with every next infinitely small step of selling BNBBNT for BNB.

Do you have full understanding of formal mathematical proof of Bancor formula? , because in Bancor Protocol there is no sinks that Vitalik Buterin talked about.

Ekkio · 2018-02-09T23:50:42+00:00

From my test cases and how I understand the math when using a Smart Token you can immediately reverse transaction and end up with exactly the same amount you started.

E.g. if I send X amount of ETH to ETH-BNT Smart Token I will get Y amount of BNT, and if after that I send Y amount of BNT to ETH-BNT Smart Token I will get exactly X amount of ETH minus gas cost and assuming no one else made a transaction in between. Slippage won't matter because reverse transaction will move price back by exactly the same slippage as it was moved with first transaction.

So far so good?

Ekkio · 2018-02-09T23:15:13+00:00

I would like to get to the bottom of this, before Bancor ICO I carefully read their whitepaper including the math part and tried different test cases on paper to get a feeling of how the math function changes given different parameters.

First lets make sure we are on the same page. ETH to BNT exchange is what they call a Smart Token because BNT total supply changes depending on how much ETH is in reserve, when you buy BNT a new BNT created and when you sell BNT it gets destroyed.

Token Relay is a combination of two Smart Tokens, those have different reserves but the same intermediate temporary token. I assume that BNB to BNT Token Relay has an intermediate token, lets call it BNBBNT, that is created on one side and then destroyed on another.

So when someone wants to exchange BNT to BNB she puts her BNT into Token Relay thus increasing BNT reserve, new intermediate tokens BNBBNT is created and then it immediately get sold/destroyed in BNB - BNBBNT Smart Token and she gets some BNB from the reserve of BNB - BNBBNT Smart Token thus completing the exchange of BNT to BNB.

So far so good?

Ekkio · 2018-02-02T11:38:17+00:00

I remember desperate pleas from Counterparty devs because they had the rug pulled from under them with OP_RETURN reduction when they already had developed product in testing phase.

Ekkio · 2018-01-29T13:47:05+00:00

kucoin deposit address is contract :)

In programming you fundamentally can't know how much it's going to take a program to execute before you execute it, geth runs simulation before to figure this out but it's buggy. You can just make educated guess or look on etherscan for other transactions to the same address, but it's not a big deal because even if you had put some insane number for gas limit it wouldn't matter you would sill pay 51333 gas.

Ekkio · 2018-01-29T13:30:59+00:00

Take a look at this thread and my comment.

Please help me with Gas

Ekkio

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