The Crypto Dollar industry has hit an inflection point in growth, with Tether the biggest beneficiary
Since launching in 2014, Tether has been a highly debated project within the crypto industry. Naysayers have given it a fair bit of criticism — from questions about the collateral backing to regulatory uncertainty. It also has faced increasing competition from numerous stablecoin projects that have launched over the past 3 years and seemed poised to eat into Tether’s market share.
Blockchain networks are open, accessible networks in which anyone can participate and contribute. There are many new ways to interact with these systems, including staking, voting, governance or app development. These behaviors are crucial to the health and overall utility of public blockchains.
However, running secure and redundant node infrastructure that enables these types of activities and behaviors is a capital-, resource- and time-intensive process. Most organizations require dedicated personnel with significant technical expertise to ensure that this infrastructure is functioning properly. Aside from being costly, this effort detracts from these organizations’ core competency, focus and objectives.
Even with dedicated…
Initial Exchange Offerings (IEOs) have emerged as a recent phenomenon, attracting attention and scrutiny. IEOs are similar to ICOs, except that the raise is conducted through the exchanges themselves. Each exchange’s IEO structure may differ slightly, but the general principle is the same. The exchange will perform some of the key underwriting functions — marketing, fundraising, and distribution. Upon completion, the project’s token will be listed on the exchange and available for trading. In return for performing these services, the exchange is paid a fee generally denominated in the given token.
Binance pioneered the model with the Bittorrent sale in…
Grin has generated a fair amount of hype and interest — in large part due the founding story, fair launch, and its use of novel technology. But beyond these narratives, how is Grin actually structured? What’s the decision making process look like? What sort of supporting infrastructure exists for Grin? These questions are all essential to its long term sustainability and viability. In this piece, I dive into Grin’s novel governance approach, and explore future directions it may take.
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All cryptocurrency developers who build public proof-of-work blockchains have to face the same challenge: Bitmain, a China-based chipmaker with a monopoly over ASIC miner manufacturing. Bitmain’s dominance over hash power and enormous influence is dangerous for peer-to-peer networks. It makes protocols vulnerable to censorship and rule-changes dictated by a single central authority, upsetting the checks and balances between the various stakeholders.
TL;DR: Zcash governance is relatively concentrated for now, and will remain so for the near future. This could be the optimal design while the project is young and requires focus and agility. As the protocol matures and grows, stewardship responsibilities will transition over to the Zcash Foundation, which can better represent the various stakeholders in the ecosystem. The oft-maligned founder’s reward is not a traditional rent seek on end users, and actually aligns developer incentives nicely. In the short term, Zcash prioritizes rapid protocol innovation, a trait likely ideal when dealing with brand new cryptography.
Zcash is a privacy focused…
TL;DR: Cryptocurrrency governance is informal, abstract, and under appreciated. I explore Monero’s governance process and how the ideology and community influence these design decisions. This is the first piece in a series around governance — I will explore more projects in the future.
What is Decentralization?
Measuring decentralization in Crypto protocols has 3 main components:
The first and second are largely technological problems and design choices. There are many models along the spectrum…
Investment team @BlockchainCapital, @Wharton