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I’d like to start with a decentralized organization that has a lot of data to draw from. Given that Bitcoin has a long history, it’s a good candidate to figure out how to model it’s growth and health. Since Bitcoin is a part of Layer 1, this will give a good base to build upon as we look at more complex decentralized organizations in the future.

This article assumes the reader has a basic understanding of the blockchain technology behind Bitcoin and its Proof of Work consensus algorithm.

As of this writing Bitcoin has a market cap of $115B. How do we determine if $115B is an appropriate market cap for Bitcoin? Currently, we mainly look at the market cap as a function of total supply and price. Where price is a function of supply and demand on the open market. This demand can change greatly based off of recent news or other information online, but we’re missing a standard way to gauge the health and growth of such an organization. …

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This post is meant to be an introduction to the idea of modeling decentralized organizations. As more research is done and the discussion furthers, pursuant posts will be more detailed and likely contain examples of models for decentralized organizations.


As blockchain and related decentralized ledger technology gained rapid attention in late 2017, people were not only confused by the technology, but also puzzled by how to value the digital assets that powered the industry. …

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The Bitcoin community has developed two factions over how to fix the current scalability issues.

Bitcoin Scalability Issues

As the hype behind Bitcoin has grown, so have the transactions being processed on it’s network. The network is processing so many transactions that it is slowing down the processing time. This makes it more difficult and time consuming to transfer coins and confirm transactions went through the network.

The issues lie with the fact that the Bitcoin blockchain has a block size of 1 Megabyte (yeah, not so large). It is also programmed to process, on average, 1 block every 10 minutes. …


Taylor Johnson

Engineer @blockfolio, Blockchain Developer, Co-Founder of VentureStorm, Entrepreneur, Technologist, Fitness Enthusiast

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