Discover and read the best of Twitter Threads about #Cryptonetworks
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#Cryptonetworks = Deliberate process, emergent outcome.
#Cryptohierarchies = Deliberate outcome, deliberate process.
(h/t @fifthworldzach)
#Cryptohierarchies = Deliberate outcome, deliberate process.
(h/t @fifthworldzach)
Many #cryptohierarchies are parading as #cryptonetworks, but the feel, intent, and distribution of such systems are far from that of a network.
#Cryptonetworks are run by crypto-natives, people committed to decentralization of data, wealth & power for the good of all.
#Cryptohierarchies are often run by Web 2.0 or TradFi transplants. While some can make a full transformation, many remain blind to their cultural habits.
#Cryptohierarchies are often run by Web 2.0 or TradFi transplants. While some can make a full transformation, many remain blind to their cultural habits.
Can't agree more about most #DAO projects are like countries with parliaments but without the relevant executive #government @verbine Would love to incorporate an executive structure to Digital Native Organizations #DNO on #Autonomy Network. Thread here 👇👇👇
For the success of Community owned organizations and Digital companies there is a need for a strong executive team while I also feel a need for a strong governance council. #token #governance models #cryptonetworks
The paradox of #decentralization and team #Leadership defines the future of #Crypto ecosystem. Excited to share my perspective on progressive decentralization in this thread
It starts with the purpose of the token. Is the project using the token to enable community ownership or is it predominantly inclined towards crowd funding ? #tokenization #crypto
Tokens inclined towards #Community #Ownership are on the right path towards progressive decentralization
#Ethereum's on-chain stablecoin transaction volumes surpassed @venmo's total payment volume in Q2 2019: tradeblock.com/blog/stablecoi… (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
tradeblock.com/blog/stablecoi…
"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
tradeblock.com/blog/stablecoi…
@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.
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.
Technology is not defensible in the open source world of #cryptonetworks.
Community is the defensible resource, and a *committed* community can't be bought.
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)
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
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.
As @superwuster made clear in The Master Switch, there will always be a pendulum swinging between centralization and decentralization in information networks.
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."
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).
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: stratechery.com/2015/aggregati…
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.
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.
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. whatbitcoindid.com/podcast/chris-… 🙏 @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
For those that have a demand-side component, there is likely to be an MV = PQ sleeve, requiring sum-of-the parts models
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
Valuation approach(es) to consider:
Market Approach – considering the robustness of the market
-Timeliness and volume
-Quality of information
#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) ...?
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) ...?
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." en.wikipedia.org/wiki/Complete_…
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.
Outside of the top 10 #cryptoassets, shorting is difficult, and even for the top 10, friction remains.
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.
.@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
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.
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.
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.
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. placeholder.vc/blog/2018/9/17…
Main conclusion: Value can’t be forked away as easily as people like to think. placeholder.vc/blog/2018/9/17…
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 😉)
1/ #Crypto has created a *Republic of Value* reminiscent of the “Republic of Letters,” which some claim seeded the Enlightenment & Industrial Revolution. press.princeton.edu/titles/10835.h…
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.
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.
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.
