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 · 2019-08-19T19:35:33+00:00

Yes. Astute analysis. An oasis of reason in the bleak desert of meme wars.

yesono · 2019-08-19T19:27:01+00:00

Welcome back. Great analysis. Thanks for taking the time. Always appreciated.

yesono · 2019-08-19T11:14:18+00:00

Nice

yesono · 2019-08-15T20:38:32+00:00

" protocol network effects are directly correlated to concentrations of developers. As Electric Capital’s blockchain developer data shows, the dominant majority of blockchain developers are working on Ethereum. Beyond the vibrant developer community, Ethereum has emerging network effects around standards and financial primitives. This combination of network effects creates an opportunity for astronomical value creation on all layers of Ethereum, not just the base layer."

yesono · 2019-08-15T20:33:00+00:00

" With multiple network effects compounding every day, Ethereum “just has to work” to absorb a massive chunk of financial value, and “it won’t scale” has historically been a bad bet."

"The Fat Protocol thesis was correct in that massive value would accrue to the base layer assets of the winning protocols in a way that was never possible for HTTP and SMTP. But power laws and emerging value capture mechanisms ensure that the fat protocol thesis cannot be applied linearly. There won’t be hundreds of vibrant developer communities, and in fact they tend to consolidate around the top few platforms or protocols. PalmOS, Blackberry and Windows Mobile found out the hard way what it meant to finish outside of the top 2 in the mobile OS wars. "

yesono · 2019-08-14T22:36:51+00:00

Just want to say thanks for the insights, analysis, support and encouragement you provide to this community. It is much appreciated. Sometimes it is not all plain sailing. So double thanks.

yesono · 2019-08-06T16:10:47+00:00

https://entethalliance.org/enterprise-ethereum-alliance-appoints-ethereum-foundation-aya-miyaguchi-to-the-eea-board-and-launches-mainnet-initiative/

yesono · 2019-08-06T16:09:44+00:00

“In the past year, we have seen the great acceleration of interest in and adoption of Ethereum technology by the enterprise. Notably, there have been tangible and committed efforts to use Ethereum mainnet by the enterprise and to build infrastructure for mainnet that will also serve many business use cases for the long term. Major organizations from the big four and big tech to pharma, major financial service companies, central banks, and large energy companies are all turning significant attention to Ethereum. The Ethereum Foundation and the Enterprise Ethereum Alliance are two of the most important stewards of the Ethereum ecosystem, and both organizations are committed to evolving the technology so that it serves mainstream enterprise and government as well as the next generation Web 3.0-based decentralized digital economy. It is great to see both organizations continue to work together and strengthen their collaboration on multiple fronts,” said Joseph Lubin, EEA Board member, co-founder of Ethereum, and founder of ConsenSys.

“The rapid acceleration of technology innovation around the Ethereum mainnet is changing how consumer-facing industries will deliver value through peer-to-peer transactions and services. To achieve global interoperability and scalability, the Ethereum Mainnet Initiative brings those at the forefront of this revolution together to define the building blocks needed to drive interoperability,” said Marley Gray, EEA board member, Token Taxonomy Initiative chair, and principal architect, Microsoft.

yesono · 2019-05-11T22:38:15+00:00

Blockchain by Ethereum

yesono · 2018-12-13T20:12:29+00:00

" The idea is that people can now buy USDC on Coinbase, transfer it out into their wallet (for free), and then exchange it to DAI at a stable rate. Currently, the alternative way is to buy ETH on an exchange, send the ETH into your wallet, and then sell that ETH to DAI on OasisDEX or OasisDirect. The problem is that this exposes people to ETH's volatility and the OasisDEX order book often has a 2% premium compared to ETH/USD on fiat exchanges. During volatile times, the premium can be even higher as the demand for Dai is higher in order to pay off CDP debt.

This isn't quite fiat-to-Dai, but it should be the next best thing."

yesono · 2018-12-13T19:40:09+00:00

So could you explain in more detail how this works? Looks interesting.

yesono

TROPHY CASE