Our thesis on Blockchain and Crypto

Shawn Teow
Sep 6, 2018 · 3 min read

During the progress of our project, we’ve often had to make plans in the face of great uncertainty. This uncertainty is magnified by the speed of change in crypto. The noise that arises whenever the market swings one way or the other sure is distracting too.

As a result, we’ve had to develop our own “thesis” that attempts to objectively state our core beliefs that we are building on. We hope this gives some insight into the thought process behind our designs and could help someone else who is in a similar position to us right now.

  1. People will always want things cheaper and simpler
  2. People will only get more connected, not less
  3. Blockchain is a crucial tool for leveling asymmetries

Proposition #1: People will always want things cheaper and simpler

The existing interfaces and tools available to crypto are developer-friendly but “raw”. Furthermore, the prevailing practice of paying “Gas” to power transactions is something that scares off the average user as they will worry how much each transaction will cost, much less the cost of the purchase itself. While it’s not a major issue to developers, it is the prevailing narrative amongst non-crypto users that tends to scare them off.

Any blockchain based system (regardless of token use) will need to be able to give users the peace of mind that prices will remain (more or less) stable, and the system will be easy to use. One key assumption that we at Ryver Protocol are making, is that users will be more friendly towards an interface that looks more like something they are familiar with than an unfamiliar one.

Proposition #2: People will only get more connected, not less

We won’t insult you by repeating platitudes about the power of the interwebs, or exponential growth etc. The growth in Facebook and Google’s user base tells us that much. But the present financial system cannot scale as quickly as other internet-enabled company can for reasons of having to comply with national sovereignty and existing legacy system needs.

In this context, Blockchain gives us a lightweight means of connecting with each other via a network optimised for the transfer of money, and a chance to start afresh, unconstrained by legacy systems. Optimised for different features, namely transparency, security, self-sovereignty, openness.

Proposition #3: Blockchain is a crucial tool for leveling asymmetries

The original proposition that underpinned the rationale for the formation of banks is to level information asymmetry i.e. who can be trusted. Thus banks became gatekeepers into the larger financial world.

But with blockchain ability to make information transparent yet maintain individual privacy, this changes everything. Building on that, by using a distributed ledger, we eliminate the chances of double spending problems and help eliminate fraud and chargebacks from the system.

In summary, these are the intellectual underpinnings of Ryver Protocol. But there remain two operating assumptions that could falsify our beliefs.

Operating Assumption #1: Regulators by-and-large will remain friendly

Regulators may develop new laws to specifically govern blockchain and crypto projects. More specifically, they may attempt enforcement. While they may have difficulty imposing their will on something as abstract as a gigabyte of information, they are still able to impose their wills on our physical beings and infrastructure. The data centers can still be raided, and we can be imprisoned.

While this remains a low probability event, it is nonetheless a Sword of Damocles that hangs over our heads. De-risking while maintaining the benefits of the blockchain will need more than just complying with the law, or operating only within the blockchain. It may have to take advantage of the connectivity of the chain itself. ;)

Operating Assumption #2: Upstarts will be more nimble in out-competing incumbents

Users don’t care about blockchain being the latest tech. They just want it cheaper and faster, and in some cases are even willing to give up their privacy for it. An incumbent coming in with deeper pockets than an upstart could easily seize the market away from the upstart.

Hence, much needs to be done by said upstarts (besides education) to deliver clear value to users in a manner that can never be done by incumbents. Such as personal custody or being able to transfer money freely and readily. Those will be the areas that will matter, and not simply “because blockchain”.

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