Ich bin kein Berliner, ich bin Knoblauchbrot. I like utility tokens. VET tip jar: 0x22e0820aC11F093e317446458f79C11CFaf58084
Jun 8, 2021 • 17 tweets • 4 min read
1/Thread: How to build intrinsic value in a Blockchain project?
There are many ways for a blockchain project to build up intrinsic value,but the core of all this is utility.
Why is intrinsic value important? Because it sets a price floor which acts as a shield from speculation
2/For projects that aim to become a store of value, intrinsic value is built up as value is transferred outside the project into it. Bitcoin and Paxos Gold are examples of this.
The threat to this is the same threat that affects physical SoVs.
May 22, 2021 • 7 tweets • 2 min read
1/People who Evangelize Bitcoin as the future of money fail to understand something.
The importance of Bitcoin lies not with the “Coin” aspect of it, but that it was the first working PoC of a theoretical concept researched for decades:
Reaching consensus amongst entities
2/who are geographically distributed,and to keep an immutable record of it.Value transfer is one use case for this, and the one Satoshi focused on, but it’s not the only one.
Like all Proofs of Concepts,this consensus mechanism is neither the pinnacle of technology, nor scalable
Apr 2, 2021 • 13 tweets • 3 min read
1/ #VeFam, let’s talk about the role of $VET and $VTHO have in the ecosystem.
In a single token network such as Ethereum, holding $ETH gives you two things: 1) Ownership of part of the network 2) Right to participate in the network
2/ In a two token network such as #VeChain , the primary token ( $VET) gives you ownership of the network while the gas token ( $VTHO) gives you the right to participate in the network.
But what does this mean in practice?
Jan 30, 2021 • 9 tweets • 3 min read
1/#VeFam, I see a lot of heated discussions regarding $VTHO and it’s speculative value. I thought I’d write a thread to clear out some misconceptions.
First up, VTHO is NOT yield from an investment ( $VET).The whole argument that VET has to give xx% returns via VTHO is pointless
2/Why? Because VTHO is a utility token required for network participation. While it is good that we ordinary holders can trade it, its primary purpose is to enable entities to use the network. VTHO is not a dividend, it is not yield, it’s simply a network participation enabler
Aug 6, 2020 • 11 tweets • 5 min read
1/ #VeChainThor primer: #VeChain vs private chains
One story I keep hearing over and over again is how companies can just use a private chain instead of VeChain and not use a token. This thread will attempt to dissect this narrative
2/ first up, just because a private chain has no crypto token doesn’t mean it’s free to use. There are ALWAYS expenses involved while using commercial solutions and the customer pays for them one way or the other. Let’s examine some of the costs involved in a private chain
1/ PSA: The #DeFi bubble
I would request everyone riding the DeFi fever pitch to watch “The Big Short” and understand the parallels.
The market wide crash of 2008 was fueled by the systematic collapse of Mortgage Backed Securities (MBS).
2/ The original premise of MBS was to package a bunch of AAA rated collection of mortgages into a security investors can buy. However, by the 2000s, banks were indiscriminately offering mortgages to anyone and everyone, resulting in junk mortgages which were sold as AAA MBSs
Before delving into this topic, let's look at PDF(Portable Document Format) for a second.Originally created by Adobe and since open sourced, this is a fantastic format to publish documents with text, embedded fontsimages, hyperlinks etc.
2/The PDF file format has specifications on how to handle all these elements & is maintained by the International Standards Organization (ISO)
Now imagine an author who wants to publish a book in the PDF format.Would it be helpful for him to have access to the PDF specifications?
When using a public blockchain, especially for enterprise use, it is imperative to implement a transaction fee (However small it is). The reason is that if transactions are truly free, the network will be spammed with useless Tx.
2/This dramatically increases hardware requirements in the long run. Ethereum for eg. uses "Gas" as network fee. "Gas" is an arbitrary unit, a subdivision of $ETH, the native token of Ethereum. The problem with this approach is that as ETH gets more expensive, so does GAS
Jun 7, 2020 • 16 tweets • 7 min read
1/ #VechainThor primer: What makes VeChain enterprise ready?
Many people don’t know,before the launch of the mainnet in 2018,@vechainofficial operates a private network for select customers and test cases. At the end of 2017, VeChain, together with @PwC_China did a market survey
2/ To understand what corporates think of Blockchain technology,the areas of most promise and the challenges for adoption. The survey received 130 responses and the results can be found here pwccn.com/en/risk-assura…
Many learnings from the survey were incorporated into the Mainnet
Q: why would companies want to put their entire supply chain info on a public chain?
A: VeChain is a public chain in the sense that every Tx can be looked up
2/ However, the rich data contained within each Tx is cryptographically encoded and is not publicly readable. Only the end user interface authorized by the VeChain customer can decrypt this data. This means that companies can choose what data to show the end customer
The below tweet led me to write this thread. @codetsunami is the creator of @ToastWallet & if he sees a problem with the status quo, rest assured there IS one. Something HAS to change for the XRPL to retain community validator presence & remain decentralized
2/ @Ripple and @JoelKatz like the catchphrase “No incentive is the best incentive “. Sorry, this simply isn’t true. Ideology doesn’t pay bills. Besides, Ripple themselves flog this rule by incentivizing partners such as @MoneyGram to use ODL.
Apr 27, 2020 • 9 tweets • 2 min read
1/ Corda 101
There is so much misinformation spread about #Corda by the XRP community that I feel it’s necessary to do this thread.
What is Corda?
An open source DLT platform aimed at enterprise use which allows businesses to set up private, permissioned distributed ledgers.
2/What is Corda Network?
A network that allows different Corda instances (e.g. implementations in 2 companies) to interact with each other with common layers for identity and consensus. It is governed by the Corda network foundation.
Apr 26, 2020 • 13 tweets • 5 min read
1/ Discussing the velocity of #XRP
In a previous thread, I discussed the difference between a Medium of Exchange (MoE)and a Store of Value(SoV), and how they affect the potential value of an asset.
2/ What is the velocity of an asset? It’s the rate at which a unit of an asset changes hands. As a rule,MoEs have extremely high velocity. SoVs have low velocity.This means that people exchange a high velocity asset ASAP for goods & services while hold on to a low velocity asset.
Apr 7, 2020 • 10 tweets • 4 min read
1/ Far too many self taught experts are calling for #Crypto to save us from the current worldwide economic downturn. However, I consider this as nothing more than a pipe dream. Here are my reasons why.
#1 Crypto has zero investor protection
2/ Crypto markets are still the Wild West. Exchanges perform 0 risk assessment before letting people do 100x leveraged trades. There are no circuit breakers. No ban on wash trading, spoofing & exchanges trading against their own customers.
A few hedge funds may dabble in crypto
Mar 12, 2020 • 12 tweets • 3 min read
1/ Tired of hearing #BTC maxis moan about “Bah gubment print moar money”. It’s scary how so few people understand how economies work.
The first step is understanding the differences between Mediums of Exchange (MoE) and Stores of Value (SoV).
2/ An MoE derives its value not from its max supply,but from its utility & liquidity.
An MoE should be universally usable to buy things & pay for services.When the FED “prints” more money & introduces it into the market,it doesn’t change your purchasing power overnight
Dec 24, 2019 • 8 tweets • 4 min read
#VeChainThor primer 2:
How are Tx costs kept stable on #VeChain
A major hurdle towards enterprise crypto adoption is the price volatility of crypto assets. As discussed earlier,@vechainofficial offers a #BaaS product called #ToolChain which enables enterprises to pay a flat fee.
2/ But how does the foundation manage this?
As we already know, the network fee is paid with $VTHO. However, the Tx costs are calculated in an arbitrary unit called $GAS. The ratio between GAS and #VTHO is 1000:1. So if a Tx costs 21000 GAS, you need 21 VTHO.
Dec 23, 2019 • 8 tweets • 3 min read
1/The following thread contains a fair bit of speculation about #XRP and is not investment advice. Reach your own conclusions:
IMO, a threat to the bridge currency model is the concept of atomic swaps between CBDC ledgers. However, this also brings an opportunity.
2/ When two CBDC ledgers do not have the provision to atomically settle, the role of a bridge currency becomes more important than ever.
Now let’s look at all the CBDC PoCs that have been developed in the past couple of years. @inside_r3#Corda has been used in many of them.
Dec 20, 2019 • 11 tweets • 4 min read
#VeChainThor primer: How to understand utility on the chain:
#VeChain is different from other projects in the sense that you can specifically see what actions on the chain relate to utility and what’s not.
A lot of leading chains have high number of Txns, but the reality is that most of it is just coins moving from/ to exchanges and between wallets.
VeChain uses what’s called “Clauses” and every Tx can have multiple clauses. Here are the important ones:
Dec 2, 2019 • 15 tweets • 8 min read
1/ It's quite disheartening to see some in the #XRPcommunity engaging in the same FUD behavior against @vechainofficial#VET as #PoW maximalists did against #XRP a while ago. So I've decided to compile the list of all FUD points, post the equivalent XRP FUD (EXF) and bust the FUD
2/ "Just use a database"
EXF: "Banks will just use SWIFT"
To paraphrase @JoelKatz , if the existing solution was good enough, companies won't be knocking at their doors to implement their solution. Just like SWIFT, using an RDBMS comes with a lot of pain points.
Sep 3, 2019 • 10 tweets • 6 min read
A lot of the discussion around $XRP is about how everyone is waiting for regulatory bodies to classify it as a non-security. And some, like @TheFCA have taken the steps to do this. But that's only one piece of the bigger puzzle.
Of particular interest are the AML5 regulations in the EU, which member states are to implement by 10 Jan 2020, with a crypto specific report to be published by 11 Jan, 2022. See the attached sections: