I just watched Vitalik Buterin’s keynote at Devcon 4 in Prague last week, on Halloween and on the tenth anniversary of Satoshi’s whitepaper.
In this keynote, Vitalik explains what has taken so long in getting from Ethereum 1.0 to Ethereum 2.0, what Ethereum 2.0 will include, and how we are going to get there.
It is a bit geeky, I can’t say that I understood everything, but if you own Ethereum, or if you believe that a scaled decentralized smart contract platform is important, and I can say yes to both of those emphatically, then this is worth watching. It is 30 mins long.
Ever since the first cryptonetwork, Bitcoin, was created, investors have had the opportunity to earn returns by engaging in the network. In Bitcoin’s case, that was done by mining the network, effectively powering it.
As the sector has grown, investors have largely turned their attention to buying and holding cryptoassets, and not that many of us are actively engaging in them.
But that is likely going to change for several reasons.
First, in proof of stake networks, asset holders will want to stake their tokens and earn the rewards of doing that, or risk being diluted/inflated. Conversely, those who do stake will earn rewards that will feel a bit like collecting interest or dividends on a bond or stock.
This technique of turning an idle asset into an incoming producing asset by engaging in the network is part of the design of many cryptonetworks and investors are going to increasingly
When someone asks you how much of a company you own, the answer could be two very different numbers. You might own 10,000 shares and there might be 1mm shares issued and outstanding. That would suggest you own 1% of the company. And that would be correct, as of right now.
What is often not calculated in these sorts of numbers is future dilution, particularly dilution that is visible if you look closely. The most common form of future dilution that is visible are outstanding options and warrants to issue stock that have not been exercised.
Let’s say this fictional company that has 1mm shares outstanding also has a 20% unissued option pool (so 200,000 options in it), and lenders have warrants to purchase 50,000 shares.
That would be another 250,000 shares that are not issued, but will be at some point, making the “fully diluted shares outstanding” equal to
In everything from AI to scan for diseases and cancers to blockchain to provide global health care for patients, today’s emerging technologies are making a real difference in medicine. To further that trend, BlueOcean Ventures ll announced the launch of SwissVCToken, a security token offering (STO) platform dedicated to the sale of its BOV To…Read More
My view has been, and is, that we are in the “infrastructure phase” of the crypto market development cycle.
To elaborate, I believe that we need better infrastructure (e.g. better base chains, better interchain interoperability, better clients, wallets and browsers) before we can see a robust application development environment and so I have stated many times that right now is a time to focus on building (and investing in) that infrastructure. That view has been the prevailing wisdom inside of USV for quite a while now.
Well a couple of our colleagues at USV decided to poke holes in that argument and spent a few weeks doing research and then writing this post.
IPFS is an open protocol built and supported by our portfolio company Protocol Labs that facilitates a peer-to-peer file system composed of thousands of computers around the world, each of which stores files on behalf of the network.
So why is this a big deal?
Well, here are a few reasons. You can all add more in the comments.
1/ Cloudflare is a massively scaled infrastructure company. By offering a hosted IPFS gateway, none of us need to download and run IPFS software on our computers anymore. Cloudflare will do it for us.
2/ IPFS is awesome. It decentralizes file hosting, which has historically been a centralized affair on the internet. The Cloudflare
Several big announcements this morning: Gemini, headed by the Winklevoss twins, announced that they had received approval to issue its first cryptocurrency, a stablecoin called the Gemini Dollar (“GD”). Designed to facilitate the use of cryptocurrency as a medium of exchange, each GD will be backed by a US dollar, “in order to give it the stability of the fiat currency and the speed and borderless nature of a cryptocurrency”. Notable in this announcement is a partnership with State Street Bank, which will hold the cash deposit account tied to the GD. Gemini also acquired a crypto custody patent last week (link here).
Over the past year, several stablecoin projects have raised capital including Basis, Reserve and Carbon. Also announced today by itBit (the 50th largest crypto exchange in the world): a stablecoin initiative and related regulatory approval. In last week’s newsletter, I linked to the funding announcement for Continue reading "Stablecoins Galore"
EXCLUSIVE: If you are brave enough and willing to take risks, you stand to succeed in any greenfield market. And the world of blockchain technology, cryptocurrencies, and distributed ledgers is no exception. Coefficient Ventures founder and CEO Chance Du started from humble beginnings. Du grew up in the rural outskirts of Sichuan Province in China,…Read More
As the blockchain technology space matures, we‘re seeing an increasing number of platforms designed to help traditional markets tokenize, decentralize, and take advantage of distributed ledgers. VNX Exchange is now launching a European digital asset marketplace aimed at bringing liquidity to the $620 billion global venture capital industry. It has…Read More
Last week I wrote about how geopolitics can impact demand for public blockchain cryptocurrencies such as bitcoin. Cryptocurrency can serve as a (relatively) stable store of value when local currencies are devalued or taken out of circulation – most recently witnessed in Turkey.
In Venezuela, where citizens have flocked to bitcoin in light of hyperinflation, the government countered by announcing a state-controlled cryptocurrency called the petro. President Nicolas Maduro claimed to have raised over $700M for the oil-backed coin in February, although that account has not been verified. The petro also does not trade on any exchanges. Last Friday, he announced new economic measures as the IMF warned that Venezuela’s inflation could hit 1 million percent by the end of 2018:
On this episode of the Epicenter podcast, Ryan Selkis, founder of the Messari project, talks about what they are trying to do with Messari and how it might bring needed transparency and accountability to ICOs and other token projects.
The big news this morning is that Intercontinental Exchange, parent of the New York Stock Exchange, announced the formation of a new company, Bakkt, a global platform to allow consumers and institutions to buy, hold and store digital assets. Its first use cases will be for trading and conversion of Bitcoin versus fiat currencies. Partners include Microsoft, Starbucks and BCG:
“ ‘In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,’ said Jeffrey C. Sprecher, Founder, Chairman and CEO of Intercontinental Exchange.
As an initial component of the Bakkt offering, Intercontinental Exchange’s U.S.-based futures exchange and clearing house plan to launch a 1-day physically delivered Bitcoin contract along with physical warehousing in November 2018, subject to CFTC Continue reading "ICE Heats up the Sector"
It is my view and our view at USV that the crypto market is in what Carlota Perez calls the installation phase.
We believe that we are still putting the pieces in place for a new technology architecture to take hold.
The “big bang” for this technology cycle was the publishing of Satoshi’s whitepaper, almost ten years ago.
But we still don’t have consensus mechanisms that can scale to transaction speeds that are typical of mainstream web apps, we don’t yet have consensus mechanisms that are energy efficient and battle-tested at scale, we don’t have an array of development tools that make building applications on this stack easy, quick, safe, and secure, we don’t have hundreds of millions of users with crypto browsers & wallets, and we don’t have all the other things that would need to be in place in order to move into the deployment phase.