Bitcoin mentioned around Reddit: Create a cryptocurrency of which only one coin exists, but can be divided to many decimal places. If it's total market cap is even a small fraction of bitcoin's, it's per coin value will be higher tha /r/CrazyIdeas
So if BTC value is the value against all coins gauge their value is it obvious that as it goes up, the value of the Alt Coin would climb? Can someone please explain if I have this wrong? Give me an intelligent response as to if this also effects market cap in the process? /r/Bitcoin
$1,000 invested in Top 10 Cryptos of 2019 now worth $1,260 (UP +26%)
EXPERIMENT - Tracking Top 10 Cryptos of 2019 - Month Eighteen - UP +26% See the full blog post with all the tableshere. tl;dr - Tether (as it's designed to do) holds its ground, all others finish the month in negative territory. Tron finishes June in second place, down -2%. BSV loses nearly 25% of value in June. Overall, since January 2019, BTC in lead, ETH takes over second place, XRP still worst performing. The 2019 Top 10 is up +26% almost equal to the the gains of the S&P 500 over the same time period (+24%).
According to a June article citing unnamed sources, which two FinTech companies are planning to allow their users to buy and sell crypto directly?
A) Paypal and Venmo B) Square and Cashapp C) Robinhood and Revolut D) Sofi and Coinbase Scroll down for the answer.
Ranking and June Winners and Losers
XRP and Stellar slipped one place each in the rankings in June, now at #4 and #14 respectively. EOS fell two spots to #11 and joins Stellar and Tron as the only three cryptos to have dropped out of the 2019 Top Ten since January 1st, 2019. They have been replaced by Binance Coin, Cardano, and newcomer CRO. Tether was the only crypto to move up in rank in June. Not a good sign when Tether is the only crypto to move up. Not a good sign when Tether enters the Top 3. June Winners – Tether. Second comes Tron, which basically held its ground at -2%. June Losers – BSV lost -23% of its value in June making it the worst performing of the 2019 Top Ten portfolio. EOS had a rough month as well, down -17%, dropping two spots in the rankings, and falling out of the Top Ten. If you’re keeping score, here is tally of which coins have the most monthly wins and loses during the first 18 months of the 2019 Top Ten Experiment: Tether is still in the lead with six monthly victories followed by BSV in second place with three. BSV also holds the most monthly losses, finishing last in seven out of eighteen months. The only crypto not to win a month so far? XRP. (In fairness, XRP has also not lost any month yet).
Overall update – BTC in lead, ETH takes over second place, XRP still worst performing
BTC is out front for the second straight month and ETH has taken over second place from BSV. Ahead until April, BSV has simply not keep up with the pack over the last two months. Bitcoin is up +144% since January 2019. The initial $100 investment in BTC is currently worth $249. Eighteen months in, 50% of the 2019 Top Ten cryptos are in the green since the beginning of the experiment. The other five cryptos are either flat or in negative territory, including last place XRP (down -50% since January 2019).
Total Market Cap for the entire cryptocurrency sector:
The crypto market as a whole is down about $20B in June, but still up +106% since January 2019.
BitDom finally wobbled in June, but not by much – it’s been in a very familiar zone for months now, indicating a lack of excitement (or at least a low risk tolerance) for altcoins. Taking a wider view, the Bitcoin Dominance range since the beginning of the experiment in January 2019 has ranged between 50%-70%.
Overall return on investment since January 1st, 2019:
The 2019 Top Ten Portfolio lost almost $175 in June. After the initial $1000 investment, the 2019 group of Top Ten cryptos is worth $1,259. That’s up about +26%. Here’s a look at the ROI over the life of the first 18 months of the 2019 Top Ten Index Fund experiment, month by month: 18 months of ROI, mostly green Unlike the completely red table you’ll see in the 2018 Top Ten Experiment, the 2019 crypto table is almost all green. The first month was the lowest point (-9%), and the highest point (+114%) was May 2019. How does the 2019 Top Ten Index Fund Portfolio compare to the parallel projects?
Taking the three portfolios together, here’s the bottom bottom bottom line: After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, the combined portfolios are worth $2,710. That’s down about -10% for the three combined portfolios. Last month that figure was +4%. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels. Here’s a new table to help visualize the progress of the combined portfolios: ROI of all three combined portfolios - not exactly inspiring How do crypto returns compare to traditional markets?
Comparison to S&P 500:
Good thing I’m tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Even with unemployment, protests, and COVID, the US market continued to rebound in June. It’s now up +24% in the last 18 months. The initial $1k investment I put into crypto would be worth $1,240 had it been redirected to the S&P 500 in January 2019. As a reminder (or just scroll up) the 2019 Top Ten portfolio is returning +26% over last 18 months, just about equal to the return of the S&P 500 over the same time period. Just last month the ROI of the 2019 Top Ten crypto portfolio was nearly double the S&P 500 since January 1st, 2019. But what if I took the same world’s-slowest-dollar-cost-averaging/$1,000-per-year-in-January approach with the S&P 500? It would yield the following:
$1000 investment in S&P 500 on January 1st, 2018: +$170
$1000 investment in S&P 500 on January 1st, 2019: +$240
$1000 investment in S&P 500 on January 1st, 2020: -$40
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P: After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,370. That $3,370 is up over+12%since January 2018, compared to the $2,710 value (-10%) of the combined Top Ten Crypto Experiment Portfolios. Here’s another new table that compares the ROI of the combined crypto portfolios to a hypothetical similar approach with the S&P 500: We see in June the largest difference in favor of the S&P since the beginning of 2020: a 22% gap. Compare that February, when there was only a 1% difference in ROI.
Since January 2019, the crypto market as a whole has gained +106% compared to the 2019 Top Ten Crypto Portfolio which has gained +26%. That’s an 80% gap. At this point in the 2019 Experiment, an investor would have done much better picking different cryptos or investing in the entire market instead of focusing only on the 2019 Top Ten. Over the course of the first 18 months of tracking the 2019 Top Ten, there have been instances this was a winning strategy, but the cases have been few and far between. The 2018 Top Ten portfolio, on the other hand, has never outperformed the overall market, at least not in the first thirty months of that Experiment. And for the most recent 2020 Top Ten group? The opposite had been true: the 2020 Top Ten had easily outperformed the overall market 100% of the time…up until the last two months.
As the world continues to battle COVID, traditional markets seem to be recovering. Will crypto make a significant move in the second half of 2020? Final word: Stay safe and take care of each other. Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the recently launched 2020 Top Ten Experiment.
And the Answer is…
A) Paypal and Venmo According to a Coindesk report in June, three sources familiar with the matter say that Paypal and Paypal-owned Venmo are planning to allow their users to buy and sell crypto. Paypal has declined to comment.
While not quite as strong as April, May was undeniably a strong month overall, especially with the last minute push that saw Bitcoin climb over the $10k mark. Although BTC (and the market overall) has fallen in the last few days while I’ve been compiling these updates, we saw almost every 2018 Top Ten crypto end the month of May higher than where it started.
A) One B) Three C) Five D) None of the above Scroll down for the answer.
Ranking and May Winners and Losers
Half of our 2018 Top Ten group were on the move in May. Cardano made the most upward progress, climbing two positions to #11. IOTA picked up rose one spot in the standings to #24 as well. On the other side, NEM keeps slipping, losing three spots to #30. Dash and Stellar also dropped two positions each in May. The overall drop out rate remains at the 50% mark (meaning half of the cryptos that started 2018 in the Top Ten have dropped out). NEM, Dash, IOTA, Cardano, and Stellar have been replaced by EOS, Binance Coin, Tezos, Tether, and BSV. May Winners – Massive month for ADA, up an impressive +62%. That’s about what Cardano gained last month, so, yeah, Cardano is having a great spring. IOTA also had a solid month, up +28%. May Losers – XRP lost about -4% making it the worst performing of this group in May. How has your favorite crypto fared over the first 29 months of the 2018 Top Ten Crypto Index Fund Experiment? Most monthly wins (7): Bitcoin. Most monthly losses (5) is a now tie between Stellar and NEM. All cryptos have at least one monthly win and Bitcoin stands alone as the only crypto that hasn’t lost a month (although it came close in January 2020 when it gained “only” +31%).
Overall update – BTC still way ahead, ETH firmly in second place, NEM worst performing.
Bitcoin made up more ground in May, now down -23% since January 2018. The last time we saw this price level to end a month was August 2019. The initial $100 investment is now worth about $77. BTC is still well ahead of the field and Ethereum is firmly in second place. This may feel like a foregone conclusion at this point, but for context, long time 2018 Top Ten Experiment followers will note that this has not always been the case. Just a little over a year ago for example, BTC was second place behind Stellar. NEM (down -95%) is in last place. That initial $100 investment in NEM? Now worth $4.74.
Total Market Cap for the entire cryptocurrency sector:
The overall crypto market added about $35B in May 2020, back near August 2019 levels. This is down about half from January 2018 when the market was worth roughly $575B.
Another flat month for Bitcoin dominance, which hasn’t moved at all in the last three months. For context, the range since the beginning of the experiment in January 2018 has been wide: a high of 70% BitDom in September 2019 and a low of 33% BitDom in February 2018.
Overall return on investment since January 1st, 2018:
The 2018 Top Ten Portfolio gained about $20 bucks in May 2020, back near where it was at the end of February. If I cashed out today, my $1000 initial investment would return about $205, down -79% from January 2018. Here’s the ROI over the life of the experiment, month by month: The streak of nine consecutive months down at least -80% was finally broken in May. Just barely (at -79%), but hey, I’ll take it. July 2019 was the last time the 2018 Top Ten finished a month in the negative seventies. What about the negative sixties? That level hasn’t been seen in about two years. Painful stuff. What about the follow on Experiments? Let’s see:
So overall? Taking the three portfolios together, here’s the bottom bottom bottom line: After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my portfolios are worth $3,104. That’s up about +3.5% for the combined portfolios. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels.
Comparison to S&P 500:
I’m also tracking the S&P 500 as part of the experiment to have a comparison point with other popular investments options. The stock market (as measured by the S&P) continued to recover in May. It’s pretty amazing with all that’s going on in the world, but the market is already back up where it was in February 2020. The initial $1k investment into crypto on New Year’s Day 2018 would have gained about $140 had it been redirected to the S&P. This is where it gets interesting. Taking the same drop-$1,000-per-year-on-January-1st approach with the S&P 500 that I’ve been documenting through the Top Ten Crypto Experiments would yield the following:
$1000 investment in S&P 500 on January 1st, 2018: +$140
$1000 investment in S&P 500 on January 1st, 2019: +$220
$1000 investment in S&P 500 on January 1st, 2020: -$50
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P: After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,310. That is up over+10%since January 2018, compared to the $3,104 value (+3.5%) of the combined Top Ten Crypto Experiment Portfolios. That’s about a 7% difference in favor of the stock market. Last month, there was only a 3% difference. The month before, the gap was 13%.
No news here: the 2018 Experiment’s focus of solely holding the Top Ten Cryptos has not and has never been a winning approach when compared to the overall market. The total market cap is down -51% from January 2018 compared to the -79% for the cryptos that began 2018 in the Top Ten. This of course implies that I would have done a bit better if I’d picked different cryptos – but much better than if I’d put all my eggs in NEM‘s -95% basket, for example. To reiterate, at no point in this experiment has this investment strategy been successful: the initial 2018 Top Ten have under-performed each of the twenty-nine months compared to the market overall. In the following two Top Ten experiments, it’s a slightly different story. There are a few examples of this approach outperforming the overall market in the parallel 2019 Top Ten Crypto Experiment. For the most recent 2020 group, this approach had outperformed the overall market 100% of the time…until this month.
The Bitcoin halving turned out to be a non event and markets continue to steadily rise despite riots in the US and a global pandemic. We’re almost half way through a very strange year. As the world changes, what will crypto’s place be in the new normal? Final word: Please take care of yourselves, your families, and your communities. Be excellent to each other. Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for my parallel projects where I repeat the experiment twice, purchasing another $1000 ($100 each) of two new sets of Top Ten cryptos as of January 1st, 2019 then again on January 1st, 2020.
And the Answer is…
B) Three Bitcoin’s third halving event took place May 2020.
Best Potential Moonshot Hands Down; TRUSTSWAP (SWAP) Full DeFi Suite, Simple P2P Trustless Escrow, and Great Tokenomics!
Trustswap https://www.coingecko.com/en/coins/trustswap Okay guys I've spent the last two days learning about this token and I've come away very impressed. I think this token may be a serious contender for best performer this year. On the TrustSwap social platforms it feels like 2017. Here's some info about the company. TrustSwap is a DeFi project created by the founder and CEO of Uptrennd Jeff Kirdeikis. Most notably he has the largest cryptocurrency investing group on Facebook, and he is what Tom was to MySpace but for Uptrennd. He host The Bitcoin and Crypto Podcast which is actually very good, and he has a massive following on Twitteother social. Better yet, this guy is a marketing genius like a less annoying Justin Sun. He has a pipeline of good news lined up and knows when and how to release that information on the masses. Everything he does seems meticulously thought through. He continually affirms his commitment to get SWAP listed on high volume exchanges with MXC yesterday, Hotbit today, and Houbi/Bitmax tomorrow he is actually succeeding. He is also very responsive and has team moderators standing by in the social media channels to field questions/vanquish FUD. Here are the basics: TrustSwap is building a DeFi ecosystem that will start out as a simple P2P trustless escrow and payment platform and evolve into a fully decentralized exchange (DEX) with leverage and futures options all offered via non-custodial smart contracts. They will also offer multi-chain token wrapping as a service and on-chain governance using the native ERC-20 token SWAP. Imagine being able to wrap BTC, Monero, Digibyte, or any crypto and then trade it on uniswap, or have it interact with Ethereum compatible wallets, and applications. Through this, you can move funds cross-chain without ever having to sign up to a Centralized Exchange, allowing you to never have to KYC, staying fully anonymous across exchanges. Wrapping tokens also offers huge benefits to new blockchain projects that have their own chain, allowing them to save massively on listing fees, as well as instantly be connected to strong wallets and decentralized exchanges. This puts the ability to trust back in the investor's hands and might spark a new ICO boom as new projects eager to establish credibility rush to use it. So yes beautiful wrapping everything layer 3 solution my brothren. And highly incentivised holding economics, for example rewarding users from fees collected from the DeFi network! And staking; All fees paid to the platform will get split as follows: 80% goes back to holders as staking rewards 10% are burned forever (adding that value back to token holders) 10% goes to the dev fund which can be used as the community sees fit This project has massive potential and is already building a strong community foundation with big moves coming soon as more exchanges and markets come on board. The staking and deflationary tokenomics make this a long term HODL for me. Token Metrics: Total Supply: 100,000,000 SWAP Circulating Supply: 62,500,000 SWAP Market Cap: $3.6 million 60,000,000 SWAP Initial liquidity offering on uniswap about two and half days ago, price dropped at like $0.035. Volume bottomed out and rising again (same with holder count). 20,000,000 Team Supply 20,000,000 Marketing, development, legal, bounties, OTC investors, airdrops. LINKS: Website: www.Trustswap.org Discord: https://discord.gg/GNUrcK Telegram: t.me/TrustSwap Token address; https://etherscan.io/token/0xcc4304a31d09258b0029ea7fe63d032f52e44efe Uniswap; https://app.uniswap.org/#/swap?inputCurrency=0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2&outputCurrency=0xcc4304a31d09258b0029ea7fe63d032f52e44efe Extra nugget from Jeff on Discord; "@everyone SwapLogo SWAP is listing on Hotbit this Monday! SwapLogo https://hotbit.zendesk.com/hc/en-us/articles/360051689713 This is the first step into TrustSwap's emergence in the Asian markets. We are going to be kicking off major marketing campaigns with an Asian marketing firm within the coming week to follow up this listing. We also have a couple more Top-50 listings lined up for this week as well When we had a vote to see which exchange you wanted to see SWAP listed on, Huobi was the winner by a massive margin, so we will be opening up the conversation with Huobi to get SWAP listed on there also in the near future." DYOR!! Godspeed! I'll see you guys on the other side! To address FUD about OTC investors dumping, yes they are dumping, it's my belief most weak hands have exited the market, they got in at $0.005 per SWAP.
Hey all, I've been researching coins since 2017 and have gone through 100s of them in the last 3 years. I got introduced to blockchain via Bitcoin of course, analyzed Ethereum thereafter and from that moment I have a keen interest in smart contact platforms. I’m passionate about Ethereum but I find Zilliqa to have a better risk-reward ratio. Especially because Zilliqa has found an elegant balance between being secure, decentralized and scalable in my opinion.
Below I post my analysis of why from all the coins I went through I’m most bullish on Zilliqa (yes I went through Tezos, EOS, NEO, VeChain, Harmony, Algorand, Cardano etc.). Note that this is not investment advice and although it's a thorough analysis there is obviously some bias involved. Looking forward to what you all think!
Fun fact: the name Zilliqa is a play on ‘silica’ silicon dioxide which means “Silicon for the high-throughput consensus computer.”
This post is divided into (i) Technology, (ii) Business & Partnerships, and (iii) Marketing & Community. I’ve tried to make the technology part readable for a broad audience. If you’ve ever tried understanding the inner workings of Bitcoin and Ethereum you should be able to grasp most parts. Otherwise, just skim through and once you are zoning out head to the next part.
Technology and some more:
The technology is one of the main reasons why I’m so bullish on Zilliqa. First thing you see on their website is: “Zilliqa is a high-performance, high-security blockchain platform for enterprises and next-generation applications.” These are some bold statements.
Before we deep dive into the technology let’s take a step back in time first as they have quite the history. The initial research paper from which Zilliqa originated dates back to August 2016: Elastico: A Secure Sharding Protocol For Open Blockchains where Loi Luu (Kyber Network) is one of the co-authors. Other ideas that led to the development of what Zilliqa has become today are: Bitcoin-NG, collective signing CoSi, ByzCoin and Omniledger.
The technical white paper was made public in August 2017 and since then they have achieved everything stated in the white paper and also created their own open source intermediate level smart contract language called Scilla (functional programming language similar to OCaml) too.
Mainnet is live since the end of January 2019 with daily transaction rates growing continuously. About a week ago mainnet reached 5 million transactions, 500.000+ addresses in total along with 2400 nodes keeping the network decentralized and secure. Circulating supply is nearing 11 billion and currently only mining rewards are left. The maximum supply is 21 billion with annual inflation being 7.13% currently and will only decrease with time.
Zilliqa realized early on that the usage of public cryptocurrencies and smart contracts were increasing but decentralized, secure, and scalable alternatives were lacking in the crypto space. They proposed to apply sharding onto a public smart contract blockchain where the transaction rate increases almost linear with the increase in the amount of nodes. More nodes = higher transaction throughput and increased decentralization. Sharding comes in many forms and Zilliqa uses network-, transaction- and computational sharding. Network sharding opens up the possibility of using transaction- and computational sharding on top. Zilliqa does not use state sharding for now. We’ll come back to this later.
Before we continue dissecting how Zilliqa achieves such from a technological standpoint it’s good to keep in mind that a blockchain being decentralised and secure and scalable is still one of the main hurdles in allowing widespread usage of decentralised networks. In my opinion this needs to be solved first before blockchains can get to the point where they can create and add large scale value. So I invite you to read the next section to grasp the underlying fundamentals. Because after all these premises need to be true otherwise there isn’t a fundamental case to be bullish on Zilliqa, right?
Down the rabbit hole
How have they achieved this? Let’s define the basics first: key players on Zilliqa are the users and the miners. A user is anybody who uses the blockchain to transfer funds or run smart contracts. Miners are the (shard) nodes in the network who run the consensus protocol and get rewarded for their service in Zillings (ZIL). The mining network is divided into several smaller networks called shards, which is also referred to as ‘network sharding’. Miners subsequently are randomly assigned to a shard by another set of miners called DS (Directory Service) nodes. The regular shards process transactions and the outputs of these shards are eventually combined by the DS shard as they reach consensus on the final state. More on how these DS shards reach consensus (via pBFT) will be explained later on.
The Zilliqa network produces two types of blocks: DS blocks and Tx blocks. One DS Block consists of 100 Tx Blocks. And as previously mentioned there are two types of nodes concerned with reaching consensus: shard nodes and DS nodes. Becoming a shard node or DS node is being defined by the result of a PoW cycle (Ethash) at the beginning of the DS Block. All candidate mining nodes compete with each other and run the PoW (Proof-of-Work) cycle for 60 seconds and the submissions achieving the highest difficulty will be allowed on the network. And to put it in perspective: the average difficulty for one DS node is ~ 2 Th/s equaling 2.000.000 Mh/s or 55 thousand+ GeForce GTX 1070 / 8 GB GPUs at 35.4 Mh/s. Each DS Block 10 new DS nodes are allowed. And a shard node needs to provide around 8.53 GH/s currently (around 240 GTX 1070s). Dual mining ETH/ETC and ZIL is possible and can be done via mining software such as Phoenix and Claymore. There are pools and if you have large amounts of hashing power (Ethash) available you could mine solo.
The PoW cycle of 60 seconds is a peak performance and acts as an entry ticket to the network. The entry ticket is called a sybil resistance mechanism and makes it incredibly hard for adversaries to spawn lots of identities and manipulate the network with these identities. And after every 100 Tx Blocks which corresponds to roughly 1,5 hour this PoW process repeats. In between these 1,5 hour, no PoW needs to be done meaning Zilliqa’s energy consumption to keep the network secure is low. For more detailed information on how mining works click here. Okay, hats off to you. You have made it this far. Before we go any deeper down the rabbit hole we first must understand why Zilliqa goes through all of the above technicalities and understand a bit more what a blockchain on a more fundamental level is. Because the core of Zilliqa’s consensus protocol relies on the usage of pBFT (practical Byzantine Fault Tolerance) we need to know more about state machines and their function. Navigate to Viewblock, a Zilliqa block explorer, and just come back to this article. We will use this site to navigate through a few concepts.
We have established that Zilliqa is a public and distributed blockchain. Meaning that everyone with an internet connection can send ZILs, trigger smart contracts, etc. and there is no central authority who fully controls the network. Zilliqa and other public and distributed blockchains (like Bitcoin and Ethereum) can also be defined as state machines.
Taking the liberty of paraphrasing examples and definitions given by Samuel Brooks’ medium article, he describes the definition of a blockchain (like Zilliqa) as: “A peer-to-peer, append-only datastore that uses consensus to synchronize cryptographically-secure data”.
Next, he states that: "blockchains are fundamentally systems for managing valid state transitions”. For some more context, I recommend reading the whole medium article to get a better grasp of the definitions and understanding of state machines. Nevertheless, let’s try to simplify and compile it into a single paragraph. Take traffic lights as an example: all its states (red, amber, and green) are predefined, all possible outcomes are known and it doesn’t matter if you encounter the traffic light today or tomorrow. It will still behave the same. Managing the states of a traffic light can be done by triggering a sensor on the road or pushing a button resulting in one traffic lights’ state going from green to red (via amber) and another light from red to green.
With public blockchains like Zilliqa, this isn’t so straightforward and simple. It started with block #1 almost 1,5 years ago and every 45 seconds or so a new block linked to the previous block is being added. Resulting in a chain of blocks with transactions in it that everyone can verify from block #1 to the current #647.000+ block. The state is ever changing and the states it can find itself in are infinite. And while the traffic light might work together in tandem with various other traffic lights, it’s rather insignificant comparing it to a public blockchain. Because Zilliqa consists of 2400 nodes who need to work together to achieve consensus on what the latest valid state is while some of these nodes may have latency or broadcast issues, drop offline or are deliberately trying to attack the network, etc.
Now go back to the Viewblock page take a look at the amount of transaction, addresses, block and DS height and then hit refresh. Obviously as expected you see new incremented values on one or all parameters. And how did the Zilliqa blockchain manage to transition from a previous valid state to the latest valid state? By using pBFT to reach consensus on the latest valid state.
After having obtained the entry ticket, miners execute pBFT to reach consensus on the ever-changing state of the blockchain. pBFT requires a series of network communication between nodes, and as such there is no GPU involved (but CPU). Resulting in the total energy consumed to keep the blockchain secure, decentralized and scalable being low.
pBFT stands for practical Byzantine Fault Tolerance and is an optimization on the Byzantine Fault Tolerant algorithm. To quote Blockonomi: “In the context of distributed systems, Byzantine Fault Tolerance is the ability of a distributed computer network to function as desired and correctly reach a sufficient consensus despite malicious components (nodes) of the system failing or propagating incorrect information to other peers.” Zilliqa is such a distributed computer network and depends on the honesty of the nodes (shard and DS) to reach consensus and to continuously update the state with the latest block. If pBFT is a new term for you I can highly recommend the Blockonomi article.
The idea of pBFT was introduced in 1999 - one of the authors even won a Turing award for it - and it is well researched and applied in various blockchains and distributed systems nowadays. If you want more advanced information than the Blockonomi link provides click here. And if you’re in between Blockonomi and the University of Singapore read the Zilliqa Design Story Part 2 dating from October 2017. Quoting from the Zilliqa tech whitepaper: “pBFT relies upon a correct leader (which is randomly selected) to begin each phase and proceed when the sufficient majority exists. In case the leader is byzantine it can stall the entire consensus protocol. To address this challenge, pBFT offers a view change protocol to replace the byzantine leader with another one.”
pBFT can tolerate ⅓ of the nodes being dishonest (offline counts as Byzantine = dishonest) and the consensus protocol will function without stalling or hiccups. Once there are more than ⅓ of dishonest nodes but no more than ⅔ the network will be stalled and a view change will be triggered to elect a new DS leader. Only when more than ⅔ of the nodes are dishonest (66%) double-spend attacks become possible.
If the network stalls no transactions can be processed and one has to wait until a new honest leader has been elected. When the mainnet was just launched and in its early phases, view changes happened regularly. As of today the last stalling of the network - and view change being triggered - was at the end of October 2019.
Another benefit of using pBFT for consensus besides low energy is the immediate finality it provides. Once your transaction is included in a block and the block is added to the chain it’s done. Lastly, take a look at this article where three types of finality are being defined: probabilistic, absolute and economic finality. Zilliqa falls under the absolute finality (just like Tendermint for example). Although lengthy already we skipped through some of the inner workings from Zilliqa’s consensus: read the Zilliqa Design Story Part 3 and you will be close to having a complete picture on it. Enough about PoW, sybil resistance mechanism, pBFT, etc. Another thing we haven’t looked at yet is the amount of decentralization.
Currently, there are four shards, each one of them consisting of 600 nodes. 1 shard with 600 so-called DS nodes (Directory Service - they need to achieve a higher difficulty than shard nodes) and 1800 shard nodes of which 250 are shard guards (centralized nodes controlled by the team). The amount of shard guards has been steadily declining from 1200 in January 2019 to 250 as of May 2020. On the Viewblock statistics, you can see that many of the nodes are being located in the US but those are only the (CPU parts of the) shard nodes who perform pBFT. There is no data from where the PoW sources are coming. And when the Zilliqa blockchain starts reaching its transaction capacity limit, a network upgrade needs to be executed to lift the current cap of maximum 2400 nodes to allow more nodes and formation of more shards which will allow to network to keep on scaling according to demand. Besides shard nodes there are also seed nodes. The main role of seed nodes is to serve as direct access points (for end-users and clients) to the core Zilliqa network that validates transactions. Seed nodes consolidate transaction requests and forward these to the lookup nodes (another type of nodes) for distribution to the shards in the network. Seed nodes also maintain the entire transaction history and the global state of the blockchain which is needed to provide services such as block explorers. Seed nodes in the Zilliqa network are comparable to Infura on Ethereum.
The seed nodes were first only operated by Zilliqa themselves, exchanges and Viewblock. Operators of seed nodes like exchanges had no incentive to open them for the greater public. They were centralised at first. Decentralisation at the seed nodes level has been steadily rolled out since March 2020 ( Zilliqa Improvement Proposal 3 ). Currently the amount of seed nodes is being increased, they are public-facing and at the same time PoS is applied to incentivize seed node operators and make it possible for ZIL holders to stake and earn passive yields. Important distinction: seed nodes are not involved with consensus! That is still PoW as entry ticket and pBFT for the actual consensus.
5% of the block rewards are being assigned to seed nodes (from the beginning in 2019) and those are being used to pay out ZIL stakers. The 5% block rewards with an annual yield of 10.03% translate to roughly 610 MM ZILs in total that can be staked. Exchanges use the custodial variant of staking and wallets like Moonlet will use the non-custodial version (starting in Q3 2020). Staking is being done by sending ZILs to a smart contract created by Zilliqa and audited by Quantstamp.
With a high amount of DS; shard nodes and seed nodes becoming more decentralized too, Zilliqa qualifies for the label of decentralized in my opinion.
Generalized: programming languages can be divided into being ‘object-oriented’ or ‘functional’. Here is an ELI5 given by software development academy: * “all programs have two basic components, data – what the program knows – and behavior – what the program can do with that data. So object-oriented programming states that combining data and related behaviors in one place, is called “object”, which makes it easier to understand how a particular program works. On the other hand, functional programming argues that data and behavior are different things and should be separated to ensure their clarity.” *
Scilla is on the functional side and shares similarities with OCaml: OCaml is a general-purpose programming language with an emphasis on expressiveness and safety. It has an advanced type system that helps catch your mistakes without getting in your way. It's used in environments where a single mistake can cost millions and speed matters, is supported by an active community, and has a rich set of libraries and development tools. For all its power, OCaml is also pretty simple, which is one reason it's often used as a teaching language.
Scilla is blockchain agnostic, can be implemented onto other blockchains as well, is recognized by academics and won a so-called Distinguished Artifact Award award at the end of last year.
One of the reasons why the Zilliqa team decided to create their own programming language focused on preventing smart contract vulnerabilities is that adding logic on a blockchain, programming, means that you cannot afford to make mistakes. Otherwise, it could cost you. It’s all great and fun blockchains being immutable but updating your code because you found a bug isn’t the same as with a regular web application for example. And with smart contracts, it inherently involves cryptocurrencies in some form thus value.
Another difference with programming languages on a blockchain is gas. Every transaction you do on a smart contract platform like Zilliqa or Ethereum costs gas. With gas you basically pay for computational costs. Sending a ZIL from address A to address B costs 0.001 ZIL currently. Smart contracts are more complex, often involve various functions and require more gas (if gas is a new concept click here ).
So with Scilla, similar to Solidity, you need to make sure that “every function in your smart contract will run as expected without hitting gas limits. An improper resource analysis may lead to situations where funds may get stuck simply because a part of the smart contract code cannot be executed due to gas limits. Such constraints are not present in traditional software systems”.Scilla design story part 1
Some examples of smart contract issues you’d want to avoid are: leaking funds, ‘unexpected changes to critical state variables’ (example: someone other than you setting his or her address as the owner of the smart contract after creation) or simply killing a contract.
Scilla also allows for formal verification. Wikipedia to the rescue: In the context of hardware and software systems, formal verification is the act of proving or disproving the correctness of intended algorithms underlying a system with respect to a certain formal specification or property, using formal methods of mathematics.
Formal verification can be helpful in proving the correctness of systems such as: cryptographic protocols, combinational circuits, digital circuits with internal memory, and software expressed as source code.
“Scilla is being developed hand-in-hand with formalization of its semantics and its embedding into the Coq proof assistant — a state-of-the art tool for mechanized proofs about properties of programs.”
Simply put, with Scilla and accompanying tooling developers can be mathematically sure and proof that the smart contract they’ve written does what he or she intends it to do.
Smart contract on a sharded environment and state sharding
There is one more topic I’d like to touch on: smart contract execution in a sharded environment (and what is the effect of state sharding). This is a complex topic. I’m not able to explain it any easier than what is posted here. But I will try to compress the post into something easy to digest.
Earlier on we have established that Zilliqa can process transactions in parallel due to network sharding. This is where the linear scalability comes from. We can define simple transactions: a transaction from address A to B (Category 1), a transaction where a user interacts with one smart contract (Category 2) and the most complex ones where triggering a transaction results in multiple smart contracts being involved (Category 3). The shards are able to process transactions on their own without interference of the other shards. With Category 1 transactions that is doable, with Category 2 transactions sometimes if that address is in the same shard as the smart contract but with Category 3 you definitely need communication between the shards. Solving that requires to make a set of communication rules the protocol needs to follow in order to process all transactions in a generalised fashion.
There is no strict defined roadmap but here are topics being worked on. And via the Zilliqa website there is also more information on the projects they are working on.
Business & Partnerships
It’s not only technology in which Zilliqa seems to be excelling as their ecosystem has been expanding and starting to grow rapidly. The project is on a mission to provide OpenFinance (OpFi) to the world and Singapore is the right place to be due to its progressive regulations and futuristic thinking. Singapore has taken a proactive approach towards cryptocurrencies by introducing the Payment Services Act 2019 (PS Act). Among other things, the PS Act will regulate intermediaries dealing with certain cryptocurrencies, with a particular focus on consumer protection and anti-money laundering. It will also provide a stable regulatory licensing and operating framework for cryptocurrency entities, effectively covering all crypto businesses and exchanges based in Singapore. According to PWC 82% of the surveyed executives in Singapore reported blockchain initiatives underway and 13% of them have already brought the initiatives live to the market. There is also an increasing list of organizations that are starting to provide digital payment services. Moreover, Singaporean blockchain developers Building Cities Beyond has recently created an innovation $15 million grant to encourage development on its ecosystem. This all suggests that Singapore tries to position itself as (one of) the leading blockchain hubs in the world.
Zilliqa seems to already take advantage of this and recently helped launch Hg Exchange on their platform, together with financial institutions PhillipCapital, PrimePartners and Fundnel. Hg Exchange, which is now approved by the Monetary Authority of Singapore (MAS), uses smart contracts to represent digital assets. Through Hg Exchange financial institutions worldwide can use Zilliqa's safe-by-design smart contracts to enable the trading of private equities. For example, think of companies such as Grab, Airbnb, SpaceX that are not available for public trading right now. Hg Exchange will allow investors to buy shares of private companies & unicorns and capture their value before an IPO. Anquan, the main company behind Zilliqa, has also recently announced that they became a partner and shareholder in TEN31 Bank, which is a fully regulated bank allowing for tokenization of assets and is aiming to bridge the gap between conventional banking and the blockchain world. If STOs, the tokenization of assets, and equity trading will continue to increase, then Zilliqa’s public blockchain would be the ideal candidate due to its strategic positioning, partnerships, regulatory compliance and the technology that is being built on top of it.
What is also very encouraging is their focus on banking the un(der)banked. They are launching a stablecoin basket starting with XSGD. As many of you know, stablecoins are currently mostly used for trading. However, Zilliqa is actively trying to broaden the use case of stablecoins. I recommend everybody to read this text that Amrit Kumar wrote (one of the co-founders). These stablecoins will be integrated in the traditional markets and bridge the gap between the crypto world and the traditional world. This could potentially revolutionize and legitimise the crypto space if retailers and companies will for example start to use stablecoins for payments or remittances, instead of it solely being used for trading.
Zilliqa also released their DeFi strategic roadmap (dating November 2019) which seems to be aligning well with their OpFi strategy. A non-custodial DEX is coming to Zilliqa made by Switcheo which allows cross-chain trading (atomic swaps) between ETH, EOS and ZIL based tokens. They also signed a Memorandum of Understanding for a (soon to be announced) USD stablecoin. And as Zilliqa is all about regulations and being compliant, I’m speculating on it to be a regulated USD stablecoin. Furthermore, XSGD is already created and visible on block explorer and XIDR (Indonesian Stablecoin) is also coming soon via StraitsX. Here also an overview of the Tech Stack for Financial Applications from September 2019. Further quoting Amrit Kumar on this:
There are two basic building blocks in DeFi/OpFi though: 1) stablecoins as you need a non-volatile currency to get access to this market and 2) a dex to be able to trade all these financial assets. The rest are built on top of these blocks.
So far, together with our partners and community, we have worked on developing these building blocks with XSGD as a stablecoin. We are working on bringing a USD-backed stablecoin as well. We will soon have a decentralised exchange developed by Switcheo. And with HGX going live, we are also venturing into the tokenization space. More to come in the future.”
Additionally, they also have this ZILHive initiative that injects capital into projects. There have been already 6 waves of various teams working on infrastructure, innovation and research, and they are not from ASEAN or Singapore only but global: see Grantees breakdown by country. Over 60 project teams from over 20 countries have contributed to Zilliqa's ecosystem. This includes individuals and teams developing wallets, explorers, developer toolkits, smart contract testing frameworks, dapps, etc. As some of you may know, Unstoppable Domains (UD) blew up when they launched on Zilliqa. UD aims to replace cryptocurrency addresses with a human-readable name and allows for uncensorable websites. Zilliqa will probably be the only one able to handle all these transactions onchain due to ability to scale and its resulting low fees which is why the UD team launched this on Zilliqa in the first place. Furthermore, Zilliqa also has a strong emphasis on security, compliance, and privacy, which is why they partnered with companies like Elliptic, ChainSecurity (part of PwC Switzerland), and Incognito. Their sister company Aqilliz (Zilliqa spelled backwards) focuses on revolutionizing the digital advertising space and is doing interesting things like using Zilliqa to track outdoor digital ads with companies like Foodpanda.
Zilliqa is listed on nearly all major exchanges, having several different fiat-gateways and recently have been added to Binance’s margin trading and futures trading with really good volume. They also have a very impressive team with good credentials and experience. They don't just have “tech people”. They have a mix of tech people, business people, marketeers, scientists, and more. Naturally, it's good to have a mix of people with different skill sets if you work in the crypto space.
Marketing & Community
Zilliqa has a very strong community. If you just follow their Twitter their engagement is much higher for a coin that has approximately 80k followers. They also have been ‘coin of the day’ by LunarCrush many times. LunarCrush tracks real-time cryptocurrency value and social data. According to their data, it seems Zilliqa has a more fundamental and deeper understanding of marketing and community engagement than almost all other coins. While almost all coins have been a bit frozen in the last months, Zilliqa seems to be on its own bull run. It was somewhere in the 100s a few months ago and is currently ranked #46 on CoinGecko. Their official Telegram also has over 20k people and is very active, and their community channel which is over 7k now is more active and larger than many other official channels. Their local communities also seem to be growing.
Moreover, their community started ‘Zillacracy’ together with the Zilliqa core team ( see www.zillacracy.com ). It’s a community-run initiative where people from all over the world are now helping with marketing and development on Zilliqa. Since its launch in February 2020 they have been doing a lot and will also run their own non-custodial seed node for staking. This seed node will also allow them to start generating revenue for them to become a self sustaining entity that could potentially scale up to become a decentralized company working in parallel with the Zilliqa core team. Comparing it to all the other smart contract platforms (e.g. Cardano, EOS, Tezos etc.) they don't seem to have started a similar initiative (correct me if I’m wrong though). This suggests in my opinion that these other smart contract platforms do not fully understand how to utilize the ‘power of the community’. This is something you cannot ‘buy with money’ and gives many projects in the space a disadvantage.
Zilliqa also released two social products called SocialPay and Zeeves. SocialPay allows users to earn ZILs while tweeting with a specific hashtag. They have recently used it in partnership with the Singapore Red Cross for a marketing campaign after their initial pilot program. It seems like a very valuable social product with a good use case. I can see a lot of traditional companies entering the space through this product, which they seem to suggest will happen. Tokenizing hashtags with smart contracts to get network effect is a very smart and innovative idea.
Regarding Zeeves, this is a tipping bot for Telegram. They already have 1000s of signups and they plan to keep upgrading it for more and more people to use it (e.g. they recently have added a quiz features). They also use it during AMAs to reward people in real-time. It’s a very smart approach to grow their communities and get familiar with ZIL. I can see this becoming very big on Telegram. This tool suggests, again, that the Zilliqa team has a deeper understanding of what the crypto space and community needs and is good at finding the right innovative tools to grow and scale.
To be honest, I haven’t covered everything (i’m also reaching the character limited haha). So many updates happening lately that it's hard to keep up, such as the International Monetary Fund mentioning Zilliqa in their report, custodial and non-custodial Staking, Binance Margin, Futures, Widget, entering the Indian market, and more. The Head of Marketing Colin Miles has also released this as an overview of what is coming next. And last but not least, Vitalik Buterin has been mentioning Zilliqa lately acknowledging Zilliqa and mentioning that both projects have a lot of room to grow. There is much more info of course and a good part of it has been served to you on a silver platter. I invite you to continue researching by yourself :-) And if you have any comments or questions please post here!
How to Get Money Out of Poker sites Using Cryptocurrency. A guide.
I wanted to provide a definitive guide for those trying to find the quickest and cheapest way to get their winnings/initial deposit out of various poker sites through the means of cryptocurrency. This guide does not recommend cryptocurrency trading and even if you follow all of these steps, there is still a risk for currency fluctuations. It took a lot for me to figure this out and I wanted to pay it forward and help those in the future learn this valuable information. I take no responsibility for the accuracy of this guide, but I will say this is the method I now use. Various state laws can make each step more difficult. However, this method is tailored to the strictest of laws that affect Cryptocurrency issued by New York state. Ok, so you got some money and want to get it out of a poker or gambling site. Checks are offered, but who has time for that 4 week turnaround on what could be a bad check. So you have decided to get into Cryptocurrency. Here is how the money gets to your bank. Poker site -> Wallet -> Exchange -> Bank. 1st Step - Getting the money out of your poker account. So you request a withdrawal in cryptocurrency. But which currency? There is Bitcoin (the original), Bitcoin Cash (the fork), Ethereum (New Cool Kid), Tether or Dai (stablecoin) Bitcoin SV, Litecoin, etc.... There are benefits to each currency. Bitcoin is the original and most well known. It is the most traded by far with a market cap (total value) more than all other cryptocurrencies combined. There is also a well established group of people holding bitcoin as an investment to the future. However, Bitcoin also has the most fees and slowest transaction times depending on the fee you pay. Personally I use Ether and Bitcoin Cash. They are based on new versions of blockchain, transfer quickest between wallets and exchanges, and have lower transfer fees. I have not used Dai and Tether, but I will go into stablecoin later. Step 2 - The Wallet. The wallet is where your money from the pokersite will go. I want to make it very clear. You do not want your money to go from the pokersite to the exchange. The exchange can and will learn it is from a pokersite which can cause you a lot of problems later on. In particular, running a foul of U.S laws and regulations on gaming. So you want the money to go to your wallet. I recommend either Exodus or if you just want Bitcon, Blockstream Green. Exodus though is my go to. You can use it online or through your mobile device. It will automatically scan deposit and withdraw codes for you (this is extremely important so you don't mess up where your money goes). It also has a nice sleek interface and accepts most cryptocurrencies. One thing to point out, Exodus was designed for bitcoin miners at one point who wanted their money out quickly. So, when using bitcoin, it sends and receives your money out as quick as possible using higher fees. You may be concerned by this. However, now you got crypto, lets get it to your exchange. Step 3 - The Exchange. So there are many exchanges, where you convert your crypto to other crypto or even cash. The three most popular in the US are Cash App, Coinbase, and Gemini. Cash App is easy, if you can set it up. If there is an issue with Cash App, good luck. Their customer support is non-existent (this actually led me to use Coinbase). Basically, you send the money from your wallet to CashApp and then sell the bitcoin in the app. About 20 minutes later the money is in the app and can be sent to your bank. There are various fees, I believe 1.5% to sell the coin, 1.5% to ACH to your account or 1.75% for instant credit to your bank account. I personally use Coinbase Pro. It costs me .5% to sell the crypto. I could then ACH it to my bank account which takes about 5 days. Instead I added another step. You can link your Coinbase account to your Paypal account. So, when I have cashed out at the cheapest rate at Coinbase Pro, I instant transfer the money to Coinbase and then instant transfer it to paypal. There are no fees for this and there are no fees for Coinbase Pro. Coinbase Pro allows you to do things CashApp or regular Coinbase does not. For example, I held my Bitcoin Cash which came in at 219 and put an order to sell at 230. When Bitcoin Cash hit 230, it sold and I made a couple extra percent return on my money. It was a risk, but wanted to play with a limit order. When the money got to my Paypal account, I instant transferred it to my debit card for 1% fee. I could have ACHed it for free and had the money in a day or two, but I decided to take the quick cash. Overall, the quickest I have seen cryptocurrency with withdrawals is under 24 hours with Pai Wang Luo Network (Bovada/Ignition) and 3 days for WPN. Once I have received my crypto, the quickest I have been able to hit my account is 1.5 hours. Now here is the big risk from Cryptocurrency: Currency fluctuation. I have no idea why crypto goes down or up, or why some cryptos go one way while others will go another. General rule, if Bitcoin is up or down, the others are as well. Example: Past 24 Hours (7/5/2020 - 7/6/2020), Bitcoin up 3.1%, Ether 6%, Bitcoin Cash 8.36% Tether -.1%, Dai .68%. Dai and Tether were created to avoid currency fluctuations by tieing themselves to an asset. Tether is "tethered" to the USD. So try one of the those for less risk maybe. But please note, while you have crypto in your wallet and exchange, and it goes up or down, that's your money going up or down. I hope this helps anyone trying to figure out how to use cryptocurrencies. GL
The next XVG? Microcap 100x potential actually supported by fundamentals!
What’s up team? I have a hot one for you. XVG returned 12 million percent in 2017 and this one reminds me a lot of it. Here’s why: Mimblewimble is like Blu-Ray compared to CD-ROM in terms of its ability to compress data on a blockchain. The current BTC chain is 277gb and its capacity is limited because every time you spend a coin, each node needs to validate its history back to when it was mined (this is how double spending is prevented). Mimblewimble is different - all transactions in a block are aggregated and netted out in one giant CoinJoin, and only the current spending needs to be verified. This means that dramatically more transactions can fit into a smaller space, increasing throughput and lowering fees while still retaining the full proof of work game theory of Bitcoin. These blockchains are small enough to run a full node on a cheap smartphone, which enhances the decentralization and censorship resistance of the network. The biggest benefit, though, is that all transactions are private - the blockchain doesn’t reveal amounts or addresses except to the actual wallet owner. Unlike earlier decoy-based approaches that bloat the chain and can still be data mined (XMR), Mimblewimble leaves no trace in the blockchain, instead storing only the present state of coin ownership. The first two Mimblewimble coins, Grin and Beam, launched to great fanfare in 2019, quickly reaching over $100m in market cap (since settled down to $22m and $26m respectively). They are good projects but grin has infinite supply and huge never-decreasing emission, and Beam is a corporate moneygrab whose founding investors are counting on you buying for their ROI. ZEC is valued at $568m today, despite the facts that only 1% of transactions are actually shielded, it has a trusted setup, and generating a confidential transaction takes ~60 seconds on a powerful PC. XMR is a great project but it’s valued at $1.2b (so no 100x) and it uses CryptoNote, which is 2014 tech that relies on a decoy-based approach that could be vulnerable to more powerful computers in the future. Mimblewimble is just a better way to approach privacy because there is simply no data recorded in the blockchain for companies to surveil. Privacy is not just for darknet markets, porn, money launderers and terrorists. In many countries it’s dangerous to be wealthy, and there are all kinds of problems with having your spending data be out there publicly and permanently for all to see. Namely, companies like Amazon are patenting approaches to identify people with their crypto addresses, “for law enforcement” but also so that, just like credit cards, your spending data can be used to target ads. (A) Coinbase is selling user data to the DEA, IRS, FBI, Secret Service, and who knows who else? (B) What about insurance companies raising your premiums or canceling your policy because they see you buying (legal) cannabis? If your business operates using transparent cryptocurrency, competitors can data mine your customer and supply chain data, and employees can see how much everyone else gets paid. I could go on, but the idea of “I have nothing to hide, so what do I care about privacy?” will increasingly ring hollow as people realize that this money printing will have to be paid by massive tax increases AND that those taxes will be directly debited from their “Central Bank Digital Currency” wallets. 100% privacy for all transactions also eliminates one HUGE problem that people aren’t aware of yet, but they will be: fungibility. Fungibility means that each coin is indistinguishable from any other, just like paper cash. Why is this important? Because of the ever-expanding reach of AML/KYC/KYT (Anti-Money Laundering / Know Your Customer / Know Your Transaction) as regulators cramp down on crypto and banks take over, increasingly coins become “tainted” in various ways. For example, if you withdraw coins to a mixing service like Wasabi or Samourai, you may find your account blocked. (C) The next obvious step is that if you receive coins that these chainalysis services don’t like for whatever reason, you will be completely innocent yet forced to prove that you didn’t know that the coins you bought were up to no good in a past life. 3 days ago, $100k of USDC was frozen. (D) Even smaller coins like LTC now have this problem, because “Chinese Drug Kingpins” used them. (E) I believe that censorable money that can be blocked/frozen isn’t really “your money”. Epic Cash is a 100% volunteer community project (like XVG and XMR) that had a fair launch in September last year with no ICO and no premine. There are very few projects like this, and it’s a key ingredient in Verge’s success (still at $110m market cap today despite being down 97% since the bubble peak) and why it’s still around. It has a small but super passionate community of “Freemen” who are united by a belief in the sound money economics of Bitcoin Standard emission (21m supply limit and ever-decreasing inflation) and the importance of privacy. I am super bullish on this coin for the following reasons:
Only $400k market cap
Supply started at zero, so there are no VC’s and team to dump on you into the pumps - all coins are mined into existence, just like Bitcoin.
It just had its first halving, reducing emission from 16 to 8 per block. Between now and 2028 there are FOUR (!) more halvings, from 4 to 2 to 1 and then finally 0.15 (I guess that would be an 85%-ing :p) and at this point the supply is the same as BTC and stays in sync forever until the last coin is mined in 2140. This simple supply curve is already accepted by the market as a winner, so why mess with success? (I)
Meets Andreas Antonopolous’ 5 pillars of open blockchains test: Public, Open, Borderless, Neutral, and Censorship Resistant. (How many coins can say this?)
Unlike Bitcoin, Epic created a multi-algorithm approach that enables people to mine on ordinary computers - 60% for CPU on RandomX, 38% for GPU on ProgPow, and 2% for ASIC’s on Cuckoo31+. The algorithms don’t compete with one another. This is essential for leveling the playing field and preventing massive farms from dominating. These percentages can change over time and new algorithms can be easily dropped in. You can mine today using an old laptop and in 5 years you will still be able to. Incidentally, there is nothing standing in the way of adding mobile phone-based mining, which ETN showed there’s a huge demand for.
Based off the excellent Grin codebase, which means they continue to pull in ongoing core code enhancements and focus on ease of use and market penetration instead. (Smart!)
Litecoin’s Charlie Lee is out there daily talking about their move to Mimblewimble, which provides free publicity. What people don’t realize is that you can’t just bolt on Mimblewimble to a legacy blockchain, that’s like putting a Ferrari engine into a school bus - it’s still a school bus, not a race car! LTC is doing it as an optional soft fork via “extension blocks” which will not be supported by all wallets and exchanges. Also, anyone using “optional” privacy features is declaring themselves to be suspicious, which kind of defeats the point for people who care about privacy.
The community is friendly and welcoming to new people coming in, with lots of helpful (independently created) tutorials and guides. (F)
It’s already a global phenomenon, with the whitepaper in 20+ languages (G) and (not bot-infested) active local-language communities on not only Telegram but also Wechat, LINE, QQ and other messenger platforms.
It’s only on two random little exchanges currently, Citex and Vitex. Vitex is actually a pretty good DEX with no KYC and a great mobile wallet.
They are very creative - since centralized exchanges want huge money to list, they created a non-inflationary ERC20 tracker token that’s exchangeable 1:1 for coins so that Uniswap trading is possible (H)
Because it doesn’t have a huge marketing budget in a sea of VC-funded shitcoins, it is as-yet undiscovered, which is why it’s so cheap. There are only 4 Mimblewimble-based currencies on the market: MWC at $162m, BEAM at $26m, GRIN at $22m, and EPIC at $0.4m. This is not financial advice and as always, do your own research, but I’ve been buying this gem for months and will continue to. This one ticks all the boxes for me, the only real problem is that it’s hard to buy much without causing a huge green candle. Alt season is coming, and coins like this are how your neighbor Chad got his Lambo back in 2017. For 2021, McLaren is a better choice and be sure to pay cash so that it doesn’t get repossessed like Chad!
Change my mind: The "all premined coins are scams" discussion is, in and of itself, dumb.
Author's forenote: I totally get the logic behind the XRP argument. Anyone who has done enough research on the "birth" of XRP will see that, at one point, Ripple staff said XRP was gifted to them by an anonymous creator. Later on they say, "We created XRP..." bla bla bla. This discussion isn't about XRP, as I think if Ripple started from scratch in 2020 with the XRP token, many if not all exchanges and banks would laugh at them. Technically, gold was created before humanity ever was, and had no value before humanity discovered the properties that made it different from other metals. Mining gold did not give gold its value. Molting it, as well as discovering its scarcity, did this. The argument of, "Oh well, that just means they can mint more whenever they want." also seems a bit dumb. Who can do this and why would they do this? I mean, to the best of my knowledge I've only seen/heard of 51% attacks taking place on lower-market-cap coins like the odd bitcoin clone or even Ethereum Classic. Don't 51% attacks make more coins get minted to? At any rate, let's get some civil discussion going.
After Robinhood Suicide, Crypto Exchanges Must Stop Acting Like Casinos: bitFlyer Exec - CoinDesk
Many exchanges were designed to encourage users to trade as frequently as possible, often with money they don’t have, and resembled casinos more than responsible trading platforms, said Joel Edgerton, chief operating officer at bitFlyer U.S. “There are too many exchanges that are run like casinos and exploit their customers,” he said. Edgerton spoke to CoinDesk just over a week after a 20-year-old student, Alexander Kearns, killed himself after falsely believing he had got himself into more than $700,000-worth of debt by trading complex options contracts on Robinhood – an app-based trading platform with a young, retail-oriented following. It later came to light that the negative balance was a temporary phase in between contract execution – i.e. Kearns wasn’t actually in the red. But Robinhood has come under heavy criticism for allowing amateur traders to access such complex instruments without safeguards to avoid confusion and, in this case, tragedy. Late last week, Robinhood announced a $250,000 donation to the American Foundation for Suicide Prevention and vowed to add safeguards to its platform, such as tightening eligibility requirements for complex options trades. See also: The Chad Index Versus Doomer Internet Money: The Breakdown Weekly Recap While Binance’s CEO Changpeng “CZ” Zhao said in response last week that his exchange already implemented a “Responsible Trading” feature, Edgerton, a former head of operations at the insurance arm of French bank BNP Paribas, said the exchange was trying to shield itself from further criticism. “I would say CZ’s response was mercenary. He is using a kid’s death to pitch his company and Binance is actually part of the problem,” he explained. The platform gets users hooked and their anti-addiction policy “highlights the fact that they built the product to be addictive,” he said. Tweet: https://twitter.com/Joel_bitFlyer?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1274038400295657472%7Ctwgr%5E&ref_url=https%3A%2F%2Fwww.coindesk.com%2Fcrypto-exchanges-casinos-robinhood-suicide-bitflyer Any crypto exchange that offered 125x leverage indiscriminately – which Binance began offering in October – isn’t serious about customer protection, Edgerton continued. BitFlyer, which opened a U.S. office in 2017, says it already restricts access to leverage and can flag or even ban users that display troubling trading patterns. The Tokyo-based exchange ranks ninth globally, according to CoinGecko, and is the market leader in Japan. It was reported last summer a Chinese bitcoin trader killed himself after a 100x position on derivatives exchange BitMEX was liquidated, a loss of about $16.4 million in a single trade. Around the same time, an anonymous student trader said he was having suicidal thoughts after losing thousands of dollars on several leveraged trades on the same platform. Arthur Hayes, BitMEX’s CEO, has previously defended his business, arguing that in a free market, customers can always move onto other platforms if they worry about being exploited or defrauded. When contacted by CoinDesk, Binance declined to comment. BitMEX hadn’t responded to a similar request by press time. See also: BitMEX Sees Biggest Short Squeeze in 8 Months After Bitcoin Surge Cryptocurrency exchanges have more of a role to play in customer protection, Edgerton said. Regulators worldwide cap leverage for retail investors, both in crypto and in traditional assets, such as equities. Japan’s Financial Services Agency (FSA) halved maximum leverage down to two times the value of the deposit this year. As such, there’s no reason an exchange should offer 100x leverage on top of highly volatile assets without first checking whether the investor knows what they are doing and that they have the income to cover that level of exposure, argued Edgerton. “We have a responsibility to provide products that are suitable to our clients,” he added. The Robinhood suicide “is what happens when companies focus on tech and profits rather than doing the right thing for their customers.” Article link: https://www.coindesk.com/crypto-exchanges-casinos-robinhood-suicide-bitflyer
Calculating the value of Moon tokens using Metcalfe's Law
I have seen a few posts here with users wondering what the price of Moon tokens on this sub are worth, and while they're "technically" not worth anything, I thought it would be fun coming up with an estimate as to how much each token is roughly worth. To do this, I measured using a metric called "Metcalfe's Law". Metcalfe's Law states that the value of a network is n log(n) of the number of participants within the network. For the calculations and statistics I'm using here, I'm getting my information from bitinfocharts.com. I figured to start with measuring this metric through the number of active users on this subreddit. For these metrics, I think it is fair to take the statistics of the last week into consideration, so that there are no outliers in this data set. Since these tokens are technically on Ethereum, that means I will be using some Ethereum statistics in this to get as accurate results as possible. Now for determining the active number of users on the network, I took the top post for this entire week (which has 3,200 upvotes + 300 comments), and assumed an engagement rate of 2.5% (This is the average engagement rates of posts on social media). Using this, the number of active users in the sub can be calculated to be ~140,000. Using this figure, and entering it in the equation v = n log(n), we get a network value of ~720,500. With this value in mind, we have to multiply it by some metric, so for this figure, I decided to multiply it by the median transaction value for Ethereum (7 day SMA). Though there are no available current metrics for median transaction value, the last SMA value for median transaction value is $0.013. I chose the median transaction value because unlike Ethereum, Moons aren't used for wealth transfer or large transactions. Otherwise, I would take the average transaction value into consideration. Multiplying this, the total market cap of Moon tokens is $9,365.95. This gives each token a value of ~$0.000605 per token. Looking at these metrics, this means the user who currently earned the most moons this month earned ~$28.52. Just to show you how accurate this metric is, I'm going to compare it using the active addresses of some of the top coins, and the average transaction value (since other currencies ARE used for wealth transfer) and compare it to the real market cap of these coins:
Metcalfe's Law Market Cap
* I think mainly the only reason there is a discrepancy for Ethereum is partly because it's not a currency intended for wealth transfer, but is more focused on creating dApps, and developing DeFi
tl;dr - This is the 17th monthly update on the 2019 Top Ten Experiment. Ethereum up the most in May, plus got a shout out from J.K. Rowling, so it obviously won the month. Overall, BTC in first place since January 2019, BSV in second place. Half of the 2019 Top Ten Portfolio is up at least +50%. XRP is worst performing. Total $3k (3 x $1k) investments the 2018, 2019, and 2020 Top Ten are up +3.5%, but similar approach with US stocks market would have yielded +10%.
Instead of hypothetically tracking cryptos, I made an actual $1000 investment, $100 in each of the Top 10 cryptocurrencies by market cap on the 1st of January 2018. The result? The 2018 Top Ten portfolio ended 2018 down 85%, my $1000 worth only $150. I thenrepeated the experimenton the 1st of January 2019 with the new 2019 Top Ten cryptos, then again in2020. Think of the Top Ten Experiments as a lazy man’s Index Fund (no weighting or rebalancing), less technical, but hopefully still a proxy for the market as a whole – or at the very least an interesting snapshot of the 2018, 2019, and 2020 crypto space. I am trying to keep this project simple and accessible for beginners and those looking to get into crypto but maybe not quite ready to jump in yet. I try not to take sides or analyze, but rather attempt to report in a detached manner letting the numbers speak for themselves. This is not investing advice – as a matter of fact, the vast majority of the reports will show that the Top Ten approach under performs other strategies. This experiment is designed to be documentary in nature, describing a specific period in cryptocurrency history.
Buy $100 of each the Top 10 cryptocurrencies on January 1st, 2018, 2019, and 2020. Hold only. No selling. No trading. Report monthly.
Month Seventeen – UP 43%
Unlike April’s all green month, May was more mixed. That said, the gains outweighed the losses this month in the 2019 Top Ten Portfolio.
Question of the month:
In May, Reddit launched two Ethereum-based tokens on the Cryptocurrency and FortNiteBR subreddits. What are the Cryptocurrency token called? A) Moons B) Bricks C) Satoshis D) Cryptos Scroll down for the answer.
Ranking and March Winners and Losers
Besides Stellar (down two spots to #13) and Tron (down one from #16 to #17) every other crypto was locked in place. Speaking of Stellar and Tron, they are still the only two cryptos to have dropped out of the 2019 Top Ten since January 1st, 2019. They have been replaced by Binance Coin and Tezos. May Winners – Ethereum ended the month up +16% and got a shout out from J.K. Rowling, so it obviously won May. BTC came in a close second this month, up +14%. May Losers – A tight battle for the basement this month with BSV (down -3.9%) edging out XRP (down -3.7%) for the bottom spot. For nerds those keeping score, here is tally of which coins have the most monthly wins and loses during the first seventeen months of the 2019 Top Ten Experiment: Tether is still in the lead with five monthly victories followed by BSV in second place with three. BSV also holds the most monthly losses, finishing last in six out of seventeen months.
Overall update – BTC increases lead over second place BSV, XRP still worst performing
Ahead until just last month, BSV lost a lot of ground to BTC in May. Bitcoin is now up +168% since January 2019 compared to BSV‘s +116% gain. That initial $100 investment in BTC? Now worth $273. As was the case last month, 50% of the 2019 Top Ten cryptos are up at least +50% since the beginning of the experiment. At the other end, XRP continues to struggle, now down -41% since January 2019.
Total Market Cap for the entire cryptocurrency sector:
The overall crypto market added about $35B in May, and is now near August 2019 levels. It is up +123% since January 2019.
BitDom was steady again in May. This marks the third straight month it’s been stuck at around 65% For context, the range since the beginning of the experiment in January 2019 has been between 50%-70%.
Overall return on investment since January 1st, 2019:
The 2019 Top Ten Portfolio gained about $65 in May. After the initial $1000 investment, the 2019 group of cryptos is worth $1,431, up about +43%. Here’s a look at the ROI over the life of the first seventeen months of the experiment, month by month: Almost completely green for the 2019 Top Ten, a welcome change from the all red table you’ll see in the 2018 experiment. As you can see, every month except the first month ends in positive territory. At the lowest point, the 2019 Top Ten portfolio was down -9%, at the highest point, up +114% (May 2019). How does the 2019 Top Ten Experiment compare to the parallel projects?
Taking the three portfolios together, here’s the bottom bottom bottom line: After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my portfolios are worth $3,104. That’s up about +3.5% for the combined portfolios. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels. How does this compare to traditional markets?
How does the 2019 Top Ten portfolio compare US stock market?
Excellent question, I’m glad you asked. And you’re in luck, I’m also tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Despite the fact that the world seemed to be on fire, May 2020 saw the continued rebound of the stock market. It’s now up +22% since the start of the 2019 Experiment. As a reminder (or just scroll up) the 2019 Top Ten portfolio is returning +43% over the same time period, which is about double the S&P 500. The initial $1k investment I put into crypto would be worth $1,220 had it been redirected to the S&P 500 in January 2019. But what if I took the same world’s-slowest-dollar-cost-averaging/$1,000-per-year-in-January approach with the S&P 500? It would yield the following:
$1000 investment in S&P 500 on January 1st, 2018: +$140
$1000 investment in S&P 500 on January 1st, 2019: +$220
$1000 investment in S&P 500 on January 1st, 2020: -$50
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P: After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,310. That $3,310 is up over+10%since January 2018, compared to the $3,104 value (+3.5%) of the combined Top Ten Crypto Experiment Portfolios. That’s about a 7% difference in favor of the stock market. Last month, there was only a 3% difference, the month before, the gap was 13% (all in favor of the stock market).
The difference between the 2019 Top Ten crypto group and the overall crypto market is stark. Since January 2019, the overall market has gained +123% compared to the 2019 Top Ten crypto group which has gained +43%. This is an absolutely massive 80% gap. A +43% return is solid compared to the stock market, but it also implies that an investor would have done much better picking different cryptos or investing in the entire market instead of focusing only on the Top Ten. There are a few examples of this approach outperforming the overall market in this 2019 Top Ten Crypto Experiment, but the cases are few and far between. The 2018 Top Ten portfolio, on the other hand, has never outperformed the overall market, at least not in the first twenty-nine months of that Experiment. For the most recent 2020 Top Ten group, the opposite had been true: the 2020 Top Ten had easily outperformed the overall market 100% of the time…until this month.
The BTC halving event came and went in May and crypto markets shrugged. As the world continues to change because of COVID-19, what will be crypto’s place when we finally emerge on the other side? Final word: Please take care of yourselves, your families, and your communities. Stay safe out there. Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the recently launched 2020 Top Ten Experiment.
And the Answer is…
A) Moons According CryptoCurrency, Moons represent ownership in the subreddit, “tokens on the Ethereum blockchain controlled entirely by you, and they can be freely transferred, tipped, and spent inCryptoCurrency*.*” Check out this post for more details.
$1k invested in Top 10 Cryptos on Jan. 1, 2020 now worth $1,264 (UP +26%)
EXPERIMENT - Tracking Top 10 Cryptos of 2020 - Month Six - UP +26% See the full blog post with all the tableshere. Not sure what this is all about? Here is the history and ground rules of these experiments. tl;dr - This snapshot was taken on July 1st, 2020. By the slimmest of margins, the 2020 Top Ten is still the best performing of the three experiments. In June: Tether holds its ground, as a stablecoin should, all others finish the month in negative territory. BSV loses nearly a quarter of its value in June and is worst performing for the second straight month. Overall, since January 2020, it is Tezos in lead (+88%) followed by second place ETH (+79%). The 2020 Top 10 is up +26% compared to the -4% loss of the S&P 500 since 01.01.2020.
Month Six – UP 26%
Lots of red this month While technically still the best performing of the Top Ten “Index Fund” Experiments for the fifth straight month, this month the 2020 Top Ten cut it close. Very close. How close? The 2020 Top Ten is up +26.6% compared to the 2019 Top Ten’s +25.9%. Watch your back, 2020 Top Ten.
Question of the month:
Which country trialed Bitcoin payments for passports in June?
A) Costa Rica B) Venezuela C) Mongolia D) Eritrea Scroll down for the answer.
Ranking and June Winners and Losers
Movement in rank After a very strange zero movement May, we saw some ups and down with the 2020 Top Ten in June. Okay, mostly downs: XRP fell one, dropping it’s long-held #3 slot. Both EOS and Tezos struggled in June: both lost two places in the rankings and both dropped out of the Top Ten. Tether is the only crypto to make a positive move in June, never a good sign. June Winners – Just Tether. The rest of the field struggled in June. ETH finished in second place, ending the month down -7%. June Losers – BSV under-performed its peers for the second straight month, losing almost a quarter of its value (-23%) in June. Tezos also struggled, down -18% since the beginning of June. For those keeping score, I also keep a tally of which coins have the most monthly wins and losses. Tether and Tezos have won two months each. BSV has finished in last place three out of the first six months of the 2020 Top Ten Experiment.
Overall update – Tezos in lead, ETH takes second place from BSV, and 80% of Top Ten are in positive territory.
Despite a bad month, Tezos (+88% since January 2020) maintained its lead. Ethereum (+79%) isn’t far behind in second place and has overtaken third place BSV (+59%). Not counting Tether, the worst performing crypto is XRP, down -7% on the year.
Total Market Cap for the cryptocurrency sector:
The overall crypto market lost over $20B in June but is still up +38% since the beginning this year’s experiment in January 2020.
Bitcoin dominance fell a tiny bit, but hasn’t really made a significant move all year.
Overall return on investment since January 1st, 2020:
After an initial $1000 investment, the 2020 Top Ten Portfolio is now worth $1,264, up +26.4%. It is the best performing of the three Top Ten Crypto Index Fund Portfolio, but just barely: the 2019 group came in at +25.9% in June. Here’s the month by month ROI of the 2020 Top Ten Experiment, hopefully helpful to maintain perspective and provide an overview as we go along: All green first half of 2020 Besides the zombie apocalypse blip in March, so far so good: all green is good to see and a nice change from the all red table you’ll see in the 2018 experiment. The range of monthly ROI for the 2020 Top Ten has been between +7% and +55%. So, how does the 2020 Top Ten Experiment compare to the parallel projects?
Taken together, here’s the bottom bottom bottom line: After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my combined portfolios are worth $2,710. That’s down about -10% for the three combined portfolios. That’s compared to about +4% last month. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels. Lost in the numbers? Here’s a new table to help visualize the progress of the combined portfolios: So that’s the Top Ten Crypto Index Fund Experiments snapshot. Let’s take a look at how traditional markets are doing.
Comparison to S&P 500
I’m also tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Even with COVID and protests in the US, stocks continued to tick up. The S&P is now down just -4% since the beginning of the year. Over the same time period, the 2020 Top Ten Crypto Portfolio is returning about +26%. The initial $1k investment now worth about $1,264. The money I put into crypto in January 2020 would be worth $960 had it been redirected to the S&P 500. That’s a $304 difference on a $1k investment. Not bad, but not as impressive as last month’s $517 swing. And what if I invested in the S&P 500 the same way I did during the first three years of the Top Ten Crypto Index Fund Experiments? You know, the world’s slowest dollar cost averaging/$1k on January 1st approach? Here are the figures:
$1000 investment in S&P 500 on January 1st, 2018: +$170
$1000 investment in S&P 500 on January 1st, 2019: +$240
$1000 investment in S&P 500 on January 1st, 2020: -$40
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P: After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,370. That $3,370 is up over+12%since January 2018, compared to the $2,710 value (-10%) of the combined Top Ten Crypto Experiment Portfolios. Here’s another new table to help visualize the difference in ROI of the combined crypto portfolios vs. a hypothetical identical approach with the S&P 500: The new table makes it easy to see that crypto and the markets went in opposite directions in June. This has produced the largest difference in favor of the S&P since the beginning of 2020: a 22% gap. Compare that February, when there was only a 1% difference in ROI.
The crypto market as a whole is up +38% since the beginning of the year compared to the 2020 Top Ten cryptos which have gained +26%. For the second month in a row, and the only two times since the Top Ten 2020 began, the cryptos in this group have under-performed the overall market. Up until the last two months, focusing on the 2020 Top Ten has been a solid approach, but it has not worked so well in the other experiment years. Although there are a few examples of the Top Ten strategy outperforming the overall market in the 2019 Top Ten Experiment, it’s interesting to note at no point in the first thirty months of the Top Ten 2018 Experiment has the approach of focusing on the Top Ten cryptos outperformed the overall market. Not even once.
The world continues to struggle with a global pandemic and traditional markets have nearly bounced back. Although up since the beginning of the year, Crypto did not keep pace with US stocks in June. Will crypto reassert itself in the second half of the year? Final word: Please take care of yourselves and your neighbors. FYI – everyone is your neighbor. Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the 2019 Top Ten Experiment follow up experiment.
And the Answer is…
B) Venezuela According to multiple sources, a Bitcoin payment option was available when paying online for passport services in Venezuela. It didn’t last long though: just hours later, the option disappeared, according to user reports.
Chainlink is the most overvalued "cryptocurrency" the world has ever seen
There are 1,000,000,000 LINK tokens, which gives it a market cap of $3.2 billion. If you remove Tether, that would place it #6 as the most valuable "cryptocurrency". If you remove XRP, which is also not a cryptocurrency, it would place it #5. If you merge bitcoin forks, it would be #3, right under Ethereum. Its current position is #11 according to CoinMarketcap, but that's because 650,000,000 tokens are owned by the team. Those tokens are not locked, nor legally bound by any agreement to not be sold. In fact the team has already started dumping them. They are literally circulating by any technical or legal definition, but for some reason CoinMarketcap decides to mislead investors and say they are not circulating. (https://beincrypto.com/chainlink-team-accused-of-dumping-530-million-in-link-tokens-over-six-weeks/) The team promises in its whitepaper that half those tokens will be "rewards for nodes", but why would you trust the team? They've lied countless times. For example when they plaster in their marketing everywhere that their oracles are decentralized (they are not), Vitalik himself says so. The only "consensus algorithm" they use is to KYC each node manually. (https://web.archive.org/web/20200416103509/https://www.reddit.com/LINKTradecomments/fyxc23/whats_up_with_vitalik_constantly_bashing/fn35ae0/) They've also lied about many partnerships. For example, they've said several times that they work with Swift, which is not true. They won some Swift competition in 2016, and radio silence since then. They still claim to be working with Swift today, but they conveniently removed it from their website not long ago. (https://web.archive.org/web/20190820085402/https://chain.link/) They also claim to be working with Google, which is also a lie. They did 1 blog post 1 year ago, which was basically a thinly veiled ad for Google Cloud services. It was provably neither a partnership nor integration. The Google employee never even ran a node on mainnet. Yet the team constantly boasts about "working with Google". (https://web.archive.org/web/20190820085402/https://chain.link/) They did the same with Oracle Cloud. Fernando (the Oracle employee that organized the "partnership") bragged about holding LINK after it pumped, got demoted, and all the Oracle startups that were supposed to be part of the "partnership" turned out to be dead or fake companies. It was at best a PR stunt for Oracle Cloud, at worst insider trading by Oracle employees. (https://web.archive.org/web/20200114062507/https://twitter.com/fribeiro1/status/1213946909464973316) Chainlink has dozens of other "partnerships". I don't have time to investigate all of them, but all the ones I looked into were basically fake. (And by fake I mean they are grossly exaggerated, the tweets and blogposts are real) As of today, even though they are the highest valued non-bitcoin, non-ethereum cryptoccurency in the world, the only project using their centralized KYC oracles are Synthetix (according to someone from their team). (https://web.archive.org/web/20200416104122/https://www.reddit.com/Chainlink/comments/fdwaad/request_examples_of_apps_built_with_chainlink/fjkhsjv/) They apparently have countless big name companies "that will use Chainlink soon", but considering their testnet has been usable for close to 2 years, they have 1-2+ years old "partnerships" that are still not using it, and that their MO is to lie as much as humanly possible, I doubt it's true.
Energi is a self-funding (no ICO and no premine) cryptocurrency that has a purpose to become the world’s leading cryptocurrency with the unification of Smart Contracts, Governance and Self-funding Treasury to ensure longevity and enable rapid growth. You can read more about why we decided to self-fund and chose not to conduct an ICO here. Energi provides a small allocation to Proof-of-Stake (PoS) rewards, takes a bulk of the coin issuance and gives it to its treasury and active Masternodes. Energi also allocates 10% on-going reward to the leadership of the Energi Backbone, which is significantly less compared to today’s ICOs’ rewarding their founders between 20–50% of the tokens distributed. Another trait that sets Energi apart from ICOs is they give an on-going 10% allocation through each block reward, rather than rewarding the founders up-front.
2. What are the Fundamentals of Energi?
1 minute block times and a 2 megabyte block size limit provide Energi with a vast transaction capacity for regular on-chain transactions. This allows for plenty of space on the blockchain for extremely fast transactions with very low fees. Energi features a powerful on-chain scaling solution with a system of incentivized full nodes called Energi Masternodes. A Masternode is a full node backed by 1,000 NRG collateral that provides level 2 scalability to the Energi Cryptocurrency. 40% of the emissions of Energi is allocated to Masternodes, providing an extremely strong incentive to grow the number of full nodes and scalability of the network.
A key feature of Energi is its powerful treasury system. Energi makes up to 40% of the emissions available to the treasury, to be utilized in a manner that provides maximum benefit. Treasury allocation is decentralized, allowing for submitted proposals from anyone, to be voted on by Masternodes and paid out from the emissions. Energi has a 14 day treasury cycle, allowing quick payments for proposal authors and contributors, as well as strategic responsiveness to effective proposals. Energi is guided by the principle that every dollar spent from its funding model should yield more than one dollar of value in return. Thanks to a 14 day treasury cycle, the Energi team is able to measure results and respond quickly to changes in strategy.
The Energi Treasury is a decentralized governance model designed with Masternodes as caretakers, with voting rights on how to best utilize treasury funding. This governance model reduces risk by allowing participation from everyone who holds 1,000 NRG as a Masternode. In this way, the Energi community can work together on how to best build the strategic direction of Energi.
Energi Cryptocurrency has a simple rate of inflation at 1 million coins per month with no maximum cap. This ensures consistency in funding allocation, Masternode rewards, and PoS rewards, making the economics of the cryptocurrency more understandable for everyone who chooses to participate in Energi. No coin supply limit ensures that Energi is prepared for the long term, avoiding “bubble” economics caused by dramatic early inflation that in most coins only serves to benefit founders ahead of increased adoption.
Energi conducted a fair launch on April 14, 2018 with no ICO and no premine. Prior to launch, the Energi team gave a specific time and date for the launch of its main net, which its vibrant community eagerly awaited, so that mining could begin fairly, again avoiding centralization among the coin founders (It's important to note that Energi has transitioned from Proof-of-Work consensus to a Proof-of-Stake consensus). Energi Masternode payments were designed to begin at block 216000, which occurred on September 18, 2018, almost 160 days after launch. This ensured time to list Energi on exchanges, and to grow the community, encouraging fair and equitable distribution before the extremely powerful Masternode rewards began. It is all too common for Masternode coins to feature a premine, which has the effect of centralizing distribution among the founders and early adopters. From 2018 to 2020, Energi distributed nearly 4 million coins to users who contributed to spreading awareness of the project with social media activities about Energi, such as tweets, follows, and subscriptions on all major social media platforms.
Decentralized governance with Masternodes helps to ensure everyone is able to participate in Energi and help guide the project to achieve the best results. The change to the requirement to run a Masternode, from 10 000 NRG to 1 000 NRG, has allowed more people to be involved and boosted decentralization for the whole project.
Long Term Vision
All of the above features seamlessly work together in concert, to ensure that Energi is prepared for the long term. Rather than try to closely find a niche in the market, Energi is prepared to adapt and overcome all challenges for many years to come. Energi’s use case is that of a traditional cryptocurrency, such as Bitcoin. However, Energi’s strategy is to excel by avoiding the pitfalls of previous projects, while further utilizing and improving upon the most powerful ideas in the cryptocurrency space.
3. Coin Specs
Ticker: NRG Block time: 1 minute. Hashing Algorithm: Dagger-Hashimoto (similar to Ethereum). Masternode requirements: 1,000 Energi. Treasury cycle: Every 14 days. Approximately 1 million Energi will be released per month. The allocations can be observed easily as “10/10/40/40.” 10% will go to the Energi Backbone. 10% to the PoS participants 40% to Masternodes. 40% to the Treasury. Thus, for every block, allocations are: 2.28 Energi to the Backbone, 2.28 Energi to the PoS participants, 9.14 Energi to the Treasury, and 9.14 Energi to Masternodes. Since Treasury allocations are paid in two-week cycles, they are made in lump sums of approximately 184,000 Energi every 14 days. In order to allow for widespread distribution of Energi before Masternode payments began, Masternode rewards were delayed until day 150. This was to allow the airdrop campaign to be completed and ensure a large amount of NRG is spread out through the community. Until that point, Masternode rewards were redirected to the Treasury. Thus for the first 5 months, the Treasury gained approximately 368,000 Energi every two weeks (about 800k Energi per month). The airdrop campaign was designed to release ~4 million Energi to the community.
dxDAO aims to power DeFi protocols through decentralized governance
I found this article on internet. It's repost of it to help educate people about all DXDao advantages: These are positive and necessary steps for DeFi. The new governance structures are intended to help coordinate across community stakeholders and make better decisions. These dynamics are influenced by the issues covered in Dose of DeFi, but I believe they deserve their own focused analysis. Govern Thisaims to educate token holders and make them better voters. Emphasis will be placed on specific governance proposals and relaying community governance discussions on forums and weekly calls. Governance is a coordination technology that has helped countries and companies build more than the sum of their parts. Blockchains are also a coordination technology, but for computers, not humans***.*** Govern Thiswill track the development of the melding of these two over the coming years. Like governance,Govern Thisis a work in progress. I would appreciate any feedback on format, topics covered or any other suggestions to make the newsletter better. Just hit reply. The first issue ofGovern Thisis below. Pleaseclick here to subscribe. Thanks for reading, Chris 📷 dxDAO aims to power DeFi protocols through decentralized governance Gnosis launched a long-awaited DEX last week with batched auctions for low-liquidity trade pairs. The front-end, Mesa.Eth.Link is owned and operated by dxDAO, a decentralized collective that hopes to power other DeFi protocols. While dYdX does not have any specific governance plans (yet), this tweet from dYdX founder Antonio Juliano is a common approach to governance. 📷Antonio Juliano @AntonioMJuliano3) 0x should focus less on governance in the short term. It’s way more important to first build something with a large amount of adoption that’s worth governing December 6th 2018 3 Retweets62 Likes The tweet at the end of 2018 was in response to 0x and its native token, ZRX. The project was popular but the token had no use case outside of governance. This governance strategy – build now, decentralize later – is widely accepted in the space and is perhaps best exemplified by the A16Z’s Jesse Walden’s post, “Progressive Decentralization: A Playbook for Building Crypto Applications”, which the A16Z-backed Compound has essentially implemented (more in the section below). dxDAO, on the other hand, maintains that decentralization must come at the beginning or else the core team and investors will have an outsized influence on the project in formal (token voting) or informal ways (dictators for life). Background dxDAO was launched in May 2019, spun out of a collaboration between Gnosis and DAOstack over managing the DutchX platform. dxDAO’s key governance design is separating financial rights to the DAO (DXD) from voting power over the DAO (Reputation). It used an Edgeware-style lock drop to distribute reputation to stakeholders in May of last year. Any user could lock up ETH or an accepted ERC-20 for a month and receive Reputation, which are voting rights in dxDAO, even though it is not a token and cannot be transferred. Over 400 unique Ethereum addresses participated in the distribution scheme. Gnosis went through a pretty extensive process in July 2019 to “step back” from its involvement in the DAO, and since then, the community and dxDAO have aligned behind a mission of “putting the ‘De’ in Decentralized Finance”. Following on last week’s launch of Mesa.ETH.Link, dxDAO is conducting a fundraiser or (“DAICO”?) to help fund its new slate of DeFi products, including a prediction market platform (Omen) and a privacy-centric DeFi dashboard (Mix). Project launch is typically when a project is most centralized. Execution is hard and direction and accountability are important. dxDAO’s approach will be an interesting counterexample to the “decentralize later” trend and may provide insight into new governance strategies. Click here for more information about the dxDAO fundraiser. Here’s what is on the dxDAO docket this week:
There are no explicit plans yet, but the widely held assumption is that the COMP distribution will be determined by the interest earned and paid by users on the protocol since its inception. This is a clever way that only incentivizes more use of the protocol and is hard to game because interests accrues over time. But the question still remains, what will the COMP community look like and what values will it espouse? Can emergent cultures arise out of Silicon Valley too? Here’s what is on the Compound docket this week:
Governance AMA with Compound CEO Robert Leshner - Robert answered a variety of questions on ETH2.0 (staking yield is of great interest), Chainlink (Compound’s oracle system is better), contentious forks (Compound would signal a preference on chain) and how Covid-19 changed his mind about remote work. They also announced…
Proposal: Add USDT Support – announced on the AMA, USDT was approved by Compound users in a poll last September but had yet to be included. The proposal to add the largest stablecoin in the world is the first test for the new governance portal. (Very) notably, the proposal does not allow USDT to be used as collateral, as Compound currently does with wBTC. It’s not clear if Compound wants to be in the largest stablecoin market or not and underscores the governance challenges of straddling both worlds.
Head of Community Rich started off with a new meme for governance: the path from intent to implementation, discussing how forums, polls and other initiatives are designed to capture the intent of the community, and then “empowered people” are tasked with implementing that, foreshadowing upcoming changes.
Half of the call was devoted to the addition of WBTC as collateral with representatives from WBTC, Bitgo and CoinList in attendance. CoinList’s WBTC announcement gives WBTC the type of liquidity needed for Maker’s auctions (“can redeem WBTC in less than 2 minutes and burn less than that”). Most of the discussion revolved around the circular loop from BTC->DAI in times of high volatility. While there was some concern that WBTC liquidity was dependent on acceptance as Maker collateral, most on the call seemed to support the addition. The strongest support seemed to come from the Maker Foundation’s market making team, who is reportedly the largest market maker for WBTC. There’s more in the Maker forum thread.
State of the peg – Vishesh’s overview (graphs can be seen here) showed that the peg had come down to $1.01x area but most of the discussion was around the debt ceiling. At the time of the call it was 4 million away from its 90m debt ceiling. Vishesh advocated for a more programmatic lifting of the debt ceiling. Update: Dai hit the 90m debt ceiling Friday evening ET. Should help the peg.
Single Collateral Dai shutdown – the process has begun. A poll passed with May 12 as the official SCD shutdown. Just yesterday, an executive just passed yesterday to make the MKR oracle fee-less, which will help with migration. Many in the community think the migration of debt from SCD will do more than enough to restore the peg. 13 MIPs and 2 sub proposals – Core to the new Maker governance process is the “Maker Improvement Proposals (MIPs), which are modeled off of BIPs (for Bitcoin) and EIPs (for Ethereum). The two sub-proposals are to appoint the Smart Contracts Team and assign Charles St. Louis as the MIP editor. The 13 MIPs are listed below:
By and large, the MIPs codify many of the informal Maker governance processes. There is currently a request for comments period (MIP forum) and there will be an informal poll on Monday, April 27 on whether to proceed with the 13 MIPs and 2 sub proposals. If it’s a “Yes”, than an executive for an official ratification vote would start on May 1 and lasts for 4 days. If it passes, the official governance cycle will begin and the rest of the MIPs will likely be approved from May 4 – 6. Other Governing Things
Synthetix trials incentivzation program to encourage ETH shorts to balance debt position Link
PieDAO community call on audit and post imBTC actions Link
Coinbase Custody double downs on DeFi governance Link
Terra considers punishing validators that don’t vote Link
0x governance proposal to decrease epoch length to 7 days Link
That’s it! Feedback definitely appreciated. Just hit reply. Written in Brooklyn where it rained all day. No euchre today, but yesterday was epic. Govern This is written byChris Powers. Opinions expressed are my own. All content is for informational purposes and is not intended as investment advice.
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