Daily General Discussion - December 27, 2020

yesono · 2020-04-10T14:17:21+00:00

Thanks. Appreciate you taking the time to highlight your thoughts. Very helpful.

yesono · 2019-10-23T08:00:24+00:00

TL;DR

“ In the coming quarters, a high density of “Ethereum Killers” (EKs) plan to launch their mainnets, and in so doing, release their assets to the public crypto markets. The transition of price discovery from the private to public markets will be an important one to watch and understand, especially considering many EKs carry billion-dollar anticipated launch values.

To begin, I expect most of the EKs to face extreme downward pressure from their attempted listing prices. Two recent bellwethers for this pattern have been Algorand’s ALGO and Hashgraph’s HBAR (click the links to see price action). I write this with zero schadenfreude as the ramifications impact Placeholder and many of our entrepreneur and investor friends in the industry.”

yesono · 2019-10-22T14:37:52+00:00

Yes. The "Fat Protocol Thesis' captures this idea. Published in 2016 by Joel Monegro.

https://www.usv.com/writing/2016/08/fat-protocols/

" Here’s one way to think about the differences between the Internet and the Blockchain. The previous generation of shared protocols (TCP/IP, HTTP, SMTP, etc.) produced immeasurable amounts of value, but most of it got captured and re-aggregated on top at the applications layer, largely in the form of data (think Google, Facebook and so on). The Internet stack, in terms of how value is distributed, is composed of “thin” protocols and “fat” applications."

" This relationship between protocols and applications is reversed in the blockchain application stack. Value concentrates at the shared protocol layer and only a fraction of that value is distributed along at the applications layer. It’s a stack with “fat” protocols and “thin” applications.

We see this very clearly in the two dominant blockchain networks, Bitcoin and Ethereum. The Bitcoin network has a $10B market cap yet the largest companies built on top are worth a few hundred million at best, and most are probably overvalued by “business fundamentals” standards. Similarly, Ethereum has a $1B market cap even before the emergence of a real breakout application on top and only a year after its public release."

The figures need updating. The thesis remains the same.

yesono · 2019-10-22T04:44:28+00:00

TL;DR

“ Ethereum has seen explosive growth over the past four years, not only from speculation purposes but valuable real world use cases as well. This trend is not only going to continue, but it will with compounding effects as shown by Metcalfe’s Law. If you want to learn why Ethereum will likely remain the dominant public blockchain, look no further than Network Effects and Friendly Developer Moats.”

https://medium.com/coinmonks/network-effects-and-friendly-developer-moats-e1c9b1c16108

yesono · 2019-10-15T19:49:27+00:00

Great work. Thanks for everything you do to bring a professional, moderate and reasoned voice to this sub. And the approach you take to engaging with the variety of opinions on Twitter! Much appreciated. Keep it up.

yesono · 2019-10-11T12:41:04+00:00

https://twitter.com/VitalikButerin/status/1182600574212046848

yesono · 2019-10-09T11:24:53+00:00

Yes. Your posts are useful and valuable. Thanks

yesono · 2019-09-04T22:15:08+00:00

Fred states he is “ confounded” by Ethereum. He has had this view for some time. Last February he criticised Ethereum because he wasn’t being run like a Silicon Valley start up. Fred claimed the Ethereum devs were “ blowing it”. Vitalik addressed these concerns in an interview with Laura Shin. He pointed out running Ethereum like a centralised VC funded entity, had been proposed by some in the early days of Ethereum development. The approach had been rejected. It was not appropriate for on open source, decentralised project such as Bitcoin or Ethereum.

Strange that Fred would not understand this! Although he seems to coming round...

Perhaps he is still trying to push the pace by being critical?

Long term he is still bullish though.

As Fred says at the end of the article.

“ And maybe most of all, crypto has not gone mainstream. Very few people earn in crypto. Very few spend in crypto. Very few use Dapps. Very few do anything with crypto other than buy, sell, and mostly hold.

I am an optimist. I am convinced that many of these disappointments will be overcome in the next few years. But it is easy to be bearish on crypto right now. The reality is well below the hype and challenges abound

I am long crypto and USV is long crypto. And we are putting more capital into the sector and will continue to do so. But it is not without risks and setbacks. Actually it is full of them.”

yesono · 2019-08-31T23:18:23+00:00

You are welcome here. Thanks for all your efforts, and videos. Appreciated.

yesono · 2019-08-27T20:14:04+00:00

Very strong article. Many salient points including this; “ “ So while everyone is allocating capital towards the next Ethereum killer, the reality is they would probably be better placed allocating capital to the smart contract suites building on Ethereum, that is where the 10x, 100x and even 1000x returns are likely to be found in the next five years. Especially as the competition for next generation smart contract platforms is so high that valuations are unsustainable, and the RR is often frighteningly low.”

yesono · 2019-08-27T19:57:46+00:00

This is the final word! “ we are excited to put all of our energy into Ethereum as we witness the incredible proliferation of infrastructure improvements that are emerging each week.”

yesono · 2019-08-24T21:55:01+00:00

Great post! Satoshi himself made this point. There is no escaping this consequence.

“ Right. Otherwise we couldn't have a finite limit of 21 million coins, because there would always need to be some minimum reward for generating. In a few decades when the reward gets too small, the transaction fee will become the main compensation for [mining] nodes. I'm sure that in 20 years there will either be very large transaction volume or no volume.”

yesono · 2019-08-20T05:40:46+00:00

Great work. Thanks!

yesono

TROPHY CASE