Crypto n’ Coffee Recap #1
Planned topic for discussion: BTC vs BCH
BTC as digital gold vs BCH as digital cash? https://medium.com/@rextar4444/roger-ver-is-clearly-correct-bitcoin-cash-is-a-better-cash-than-bitcoin-bcf0caf5a8fd
Which is more in line with Satoshi’s original vision? Also, does it really matter? Perhaps gets into fun topics like fundamentalist/literalist interpretations vs more modernist means/approaches…
Other topics covered:
Decentralization metrics for comparing protocols
Which exist, which ought to exist, might exist, what do they look like today?
How do we know when/if something is decentralized? Merely seeking decentralized… enough? More so than existing solutions?
Further reading:
Quantifying Decentralization by Balaji Srinivasan and Leland Lee
TL;DR -> Many believe decentralization to be the prime factor/value of systems like BTC and ETH. If true, important to quantify/measure… “Nakamoto Coefficient” is a pretty good starting point for optimization/analysis. Uses existing concepts of Gini Coefficient, Lorenz Curve.
Nakamoto coefficient = min # “entities whose proportions one can sum to obtain 51% control”
Decentralization in Bitcoin and Ethereum Networks — Academic, Cornell University
TL;DR -> Uses the Falcon Network and the application of well-established internet measurement techniques. Proposes the following: “BTC has a higher capacity, more clustered nodes likely in datacenters. BTC and ETH have fairly centralized mining processes as they exist today. Further research needed to decentralize permissionless consensus protocols further. Volatility of mining rewards an important, but often ignored metric. BTC can seemingly increase block size by factor of 1.7x w/out any decrease in decentralization relative to 2016. ETH would benefit from relay network to increase mining power utilization.”
Governance Structures
…as they relate to cryptocurrency/blockchain protocols… a very tough/contentious issue though important… likely useful to debate. The following is a link to a cool/different/novel blockchain governance project, democracy.earth.
The Lindy Effect
“An Expert Called Lindy” by Nassim Nicholas Taleb
TL;DR -> Wine has a greater probability of existing in the future over something like a Monster Energy drink given its longer history of existence in the past.
Economics of trade-offs, or are they one in the same?
Network processing capacity vs accessibility, the Triffin Dilemma, its potential implications today, the role cryptocurrencies might play to resolve it going forward.
Analogies for explaining technologies
Protocol layers as differing/base layers of top soil/garden which to be planted into and built upon (web3, Dapps, other tokens, lightning network, other “second layer solutions”)
Proof of Work as a horse race of computers competing to add to the chain/win mining reward (horses carrying very long blockchains?) in-between races they get on the same page (agree on single ledger)
Might be cool/useful to create some actual visualizations of these…
BEN (Blockchain Education Network)
Badger Blockchain is part of a larger organization called the Blockchain Education Network which has their own slack that you’re welcome to join. http://blockchainedu.org/join-ben
…Overall great to get this format started here in Week 1 of Badger Blockchain Crypto+Coffee. Big fan of the space in the SAC (Innovators Coalition), high potential going forward we believe… S/O to those able to make it out for a morning event! No doubt looking forward to next week’s discussion. Should be same time, same place. Please stay tuned to the slack for further details!
