Electric Capital Newsletter: №5 — April 2019

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The Basics of Ethereum 2.0 Economics Eric Conner of EthHub provides an overview to the economics of staking in the proof-of-stake model for the upcoming Ethereum 2.0 release. The article walks through proposed reward rates for validators, and shows that validators can be profitable even at large amounts of ETH staked (10M ETH, or 1.65B USD equivalent).

Demystifying Cosmos: Atomic Swaps, Ethereum, Polkadot and the Path to Blockchain Interoperability Cosmos is a protocol for heterogeneous blockchains to communicate with each other, i.e. an “Internet for blockchains.” Sunny from the Cosmos team explains the core concepts and motivations behind the Cosmos system and the role of the Cosmos Hub. He also describes a future multiple inter-blockchain communication systems that can coexist, where the Cosmos Hub can operate in parallel with other hubs, including the Polkadot system.

Stack Overflow: Developer Survey Results 2019 (blockchain-related questions) This year’s Stack Overflow survey included questions pertaining to the adoption of blockchain technologies among developers. From over 60,000 responses, nearly 70% of developers said blockchain technologies are useful for decentralized currencies, immutable record-keeping, and many other use cases. At the same time, only 20% of developers indicated that their current organization has adopted blockchain technology.

Introducing Polaris: A trustless price oracle for ERC20 tokens On smart contract platforms, oracles play the role of providing data that is used by other contracts to make decisions (such as the price of an asset). The article describes Polaris, a new pricing oracle design used by the Marble lending system. Polaris uses prices discovered by Uniswap markets (a smart contract that serves as an algorithmic market maker using a shared pool of liquidity from investors), with a set of overlayed rules to incentivize the timely update of the prices, control for volatility, and disincentivize price manipulation.

What is Bitcoin, and What Will It Become? A 10-Year History A concise summary of the first 10 years of Bitcoin, covering major defining events, as well as a high-level overview of the system’s design. Also covered are major market influencing factors including protocol governance, government regulation, and public opinion cycles, and future enhancements in the forms of payment networks built on top of Bitcoin (Lightning networks) as well as core cryptographic innovations such as Bulletproofs (enhancing privacy) and Schnorr signatures (which reduce transaction sizes).

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Today I Learned

@spencernoon walks through the first synthetic asset on Ethereum, which allows users to get exposure to US stock indices without owning any actual stock.

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