Discover and read the best of Twitter Threads about #cryptonetworks

Most recents (17)

#Ethereum's on-chain stablecoin transaction volumes surpassed @venmo's total payment volume in Q2 2019:… (h/t @evan_van_ness)
@venmo @evan_van_ness #Ethereum was also < 1/100th as extractive as @venmo:

"customers spent just $827,000, in network fees, to transfer more than $37 billion. Over this same period, fees & fees on associated services paid to Venmo are expected to reach $150M." -@TradeBlock…
@venmo @evan_van_ness @TradeBlock We'll see this thesis play out again and again for successful #cryptonetworks.

They'll scale to be larger than most company-provisioned-services, at a faster rate, and should offer on-par services for order(s) of magnitude less.
Read 3 tweets
Technology is not defensible in the open source world of #cryptonetworks.

Community is the defensible resource, and a *committed* community can't be bought.
It is proof-of-labor, not capital, that converts someone into being there over the long term, as opposed to a fairweather fan.
(And labor as a community member can show up in all kinds of ways, it's not exclusively technical-labor)
Read 3 tweets
By connecting suppliers with consumers through an open protocol, distributors built atop #cryptonetworks lose a significant leverage point that exists in the Web today: exclusive access to the scarce underlying resources of production & consumption.
Put another way, crypto’s open protocols unbundle “distribution” from the “scarce resource,” which should help us avoid a GAFA style consolidation of market power.

cc @benthompson
That said, be on the lookout for consolidation vectors.

As @superwuster made clear in The Master Switch, there will always be a pendulum swinging between centralization and decentralization in information networks.
Read 4 tweets
1/ Given the governance battles we currently see everywhere, winning #cryptonetworks may emerge by merely persisting through "wars of attrition."
2/ If true, we currently focus too much on present-day dominance, underweighting a cryptonetwork's ability to deftly navigate the future.
3/ In the words of @Shaughnessy119, being able to deftly navigate the future allows a cryptonetwork's "tech to compound without fracturing."
Read 9 tweets
1/ Globally successful #cryptonetworks will be aggregators of a scale hardly seen before.

They will also change the market power of suppliers, consumers, and distributors (once again).
2/ @benthompson @stratechery sets the stage for the current digital landscape of Aggregation Theory:…
3/ With cryptonetworks that find fit:

Suppliers & Consumers of the service will be unified & routed via an open and global protocol.

Distribution will happen via application interfaces that have no lock-in to the underlying base of suppliers/consumers.
Read 7 tweets
One of my favorite interviews I've done over the years in #crypto. A balanced & calm conversation between a #bitcoin minimalist and a crypto VC.… 🙏 @PeterMcCormack
A few too-long-didn't-listen takeaways: many #cryptoassets are shaping up as supply-side focused instruments that'll accrue value for providing suppliers access to "value-flows," similar to how a stock provides access to "cash-flows." Demand-side may not need native token at all.
Such #cryptoassets are more a replacement for equities, than for currencies, and majority of value will be projected via "discounted-value-flow" (DVF) models.

For those that have a demand-side component, there is likely to be an MV = PQ sleeve, requiring sum-of-the parts models
Read 24 tweets
1/ Just attended a very interesting @duffandphelps luncheon on valuing #cryptoassets. Here’s a thread on my key takeaways, as I understood them.
2/ Note: this is NOT a thread on experimental valuation methodologies for #cryptoassets like Metcalfe’s law, MV=PQ, discounted expected utility, etc. Rather, this is on how trad. valuation experts and accounting rule makers are currently thinking about valuation best practices.
3/ "Currency Tokens"

Valuation approach(es) to consider:

Market Approach – considering the robustness of the market
-Timeliness and volume
-Quality of information
Read 24 tweets
#Cryptonetworks that started as a security but already launched & will be grandfathered into “sufficiently-decentralized-to-no-longer-be-a-security-land” have a sizable #RegulatoryMoat vs those that raised in 2017 and have yet to launch & cross the security divide.
Much easier for a regulator to say, that #cryptoasset’s no longer a security, and leave its tax treatment, filing requirements, etc as such, than to provide the path to cross from security —> non-security, and that “path” I fear will become a quagmire.
What woes will a team face if upon launch their cryptoasset is a security (until they become a non-security)?

For example:
1) tax ramifications of “transacting” a security are horrible for use.
2) heavy filing requirements drag on resources, especially if dev heavy team
3) ...?
Read 5 tweets
1/ Don't underestimate the strength of the #hodl meme. Until we have market completeness, hodlers will make #cryptoasset prices stickier than anticipated.
2/ Market completeness: "In such a market, the complete set of possible bets on future states-of-the-world can be constructed with existing assets without friction."…
3/ It's no secret the #crypto markets have a strong long bias.

Outside of the top 10 #cryptoassets, shorting is difficult, and even for the top 10, friction remains.
Read 15 tweets
1/ $ETH came to market as a security, but a big part of what's protected #Ethereum from regulators recently is the amount of innovation happening atop the platform.
2/ Strong innovation protects against heavy-handed regulation, as regulators work to avoid stifling ingenuity in a world that relies on it for economic growth.
3/ #Cryptonetworks that also launched their token as a security, but have little being built atop their platform, won't have the same protection as $ETH.
Read 4 tweets
.@elonmusk you refer to companies like @facebook as "a cybernetic collective of people and machines," which I ❤️ as an idea, but I think is even better when applied to #cryptonetworks like Bitcoin.
Collectives imply that *all constituents* work together w/ a common interest.

With companies, it is the shareholders that have a common goal of profit, while the rest of the constituents (consumers, suppliers, 3rd party devs, etc) eventually end up short-changed due to that goal
By uniting all constituents around a shared repo of open source software, which lays out the rules of the game (and how those rules are changed) for the supply-side, demand-side, & investors, #cryptonetworks are an upgraded version of the "cybernetic collective" you reference.
Read 5 tweets
Spoke with @licuende & @izqui9 from @AragonProject this morning, reminded me that the "decentralized interfaces" with short-to-medium term promise will be *high value / low velocity* systems.
2/ Take structuring and decision making around organizations, as @AragonProject is focused on. In the existing world, those processes make wire transfers look snappy.
3/ @AragonProject as a "decentralized interface" that provides mostly *high value / low velocity* functionality, is likely to be > an order of magnitude faster than traditional governance & voting systems.
Read 4 tweets
1/ #Cryptonetworks represent a coordination mechanism around a scarce resource (or resources).
2/ In #Bitcoin, the scarce resource is space on the ledger, and a highly secure ledger at that.
3/ If you believe “ledger space” is the only scarce resource that a blockchain can coordinate around, then you’re a maximalist of some kind.
Read 6 tweets
1/ @alexhevans recently dug into the numbers behind forks of #Bitcoin, #Ethereum, #Monero & #Zcash.

Main conclusion: Value can’t be forked away as easily as people like to think.…
2/ Secondary conclusion: Despite parent #cryptonetworks retaining users, devs & value, the child forks trade at (puzzling) relative valuation premiums.
3/ To follow are graphs and conclusions from @alexhevans that are relevant to specific actors or ratios (if you're not a fan of long form writing 😉)
Read 11 tweets
1/ #Crypto has created a *Republic of Value* reminiscent of the “Republic of Letters,” which some claim seeded the Enlightenment & Industrial Revolution.…
2/ Global diversification of thinkers is key for #crypto as it breeds resilience to any nation's attempt at intellectual censorship.
3/ People ask, “What happens if the gov seizes mining equipment? Or bans crypto transactions? Or..." But banning minds from thinking and tinkering has proven near-impossible over time.
Read 6 tweets
FWIW, my bet's on MV = PQ sticking around within #crypto with iterative extensions including some of those already put forth by @alexhevans @sall @wintonARK @sbmckeon and more (no disrespect to Jimmy here at all).
2/ Everyone's welcome 2 their own opinion rn, the models + market will tell the truth over time. If MV = PQ proves a valid way to analyze the economies of #cryptonetworks, as it has proved useful in physical economies, then that will materialize clearly through the research & #'s
3/ As an identity, MV = PQ is a relatively harmless mathematical tool, fits nicely with mapping money flows, and dimensioning both the supply & demand sides of an economy.
Read 5 tweets
1/ Put together some informal thoughts on smart contract platforms for friends that I figured I should share. Clearly, this market is #Ethereum’s to lose.
2/ The reward, however, for any smart contract platform that can achieve #Ethereum levels of success is significant. Makes the expected value of investments potentially positive, even if low odds.
3/ #Ethereum has a “feature gravity advantage” over the upstarts, and a proven willingness to move fast and avoid ossification. So long as scale doesn’t make things a quagmire, such flexible governance will suit $ETH well going forward.
Read 9 tweets

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