Handwriting 丨 Joseph Lubin: The three major transformation directions of Ethereum and the moat

Today's content includes:

1 Joseph Lubin Osaka Speech: Ethereum's Web3 Three Reconstruction Directions and Moat River Four Court Columns 2 Pantera Partner Paul Brodsky: Deep Thoughts on Liba and Global Big Debt 3 Vlad Zamfir: Ethereum's Legal Issues Are Inevitable Crisis 4 Hasu's latest research paper: Bitcoin security and block reward decline model 5 Pandera partner Paul Brodsky: deep thinking about economic unity theory

Joseph Lubin Osaka Speech: Ethereum's Web3 Three Reconstruction Directions and the Moat River Quadruple Column

This is the speech by Consensys founder Joseph Lubin at Devon5 in Osaka on the topic of the dangers of today's networks, the three milestones of the blockchain and the call of Ethereum developers. I think the more interesting viewpoint of the full text is his "three major transformations" direction and the "four pillars" theory that the Ethereum killer must possess.

The Internet begins with some form of decentralized commitment, but this promise has failed or broken. Without the construction of a native currency, the network uses advertising as its core business model. These solutions involve token-based, incentive-based collaboration mechanisms. These networks will bring together many participants in different roles and design incentives through a token-based mechanism that enables collective collaboration behavior on each platform to serve all people operating on the platform and co-owning and managing the platform. As the value of the platform appreciates, all owners who play different roles on the platform will also benefit.

Web3 will be more user-centric than any previous Internet platform, ultimately placing users at the center of the user experience. People must control the roots of their identity so that their identity is not stolen and must control their personal information so that it cannot be used.

Implementing a well-structured Web3 world will involve improvements in three main areas: privacy, scalability, and usability.

Privacy and confidentiality : Privacy and confidentiality are rapidly evolving for a variety of explorations of zero-knowledge technology, stateful channel mechanisms, and Layer 2 private-chain architectures.

Scalability : A huge improvement in scalability With the construction of various Layer 2 solutions, the release and anchoring in Ethereum Layer 1 to provide additional security, this approach is also progressing rapidly. Here he named SKALE.

Usability : Usability has also improved dramatically, and many projects are exploring "gradual entry technology," which gives users immediate access to the dapp.

As regulators have woken up, any post-2015 agreement that is expected to be widely adopted must be based on the following four pillars:

  • Tokens must be issued widely and fairly.
  • Communities must remain engaged, energetic and grow over time. One way to achieve this is to make the tokens held by the community appreciate. Incidental note: The community must also attract a large number of the best and brightest developers and entrepreneurs.
  • The project must introduce sufficient funds to be delivered, maintained and continuously improved.
  • Finally, this is a new challenge: the project must meet regulatory requirements.

Among all the competitors, the Ethereine killer appeared in the past few years after Bitcoin and Ethereum, and there is no convincing indication that all four requirements can be met. The best way to build and develop a strong community is to sell tokens to them and promise to make it appreciate, and they will work hard to do this, which is the definition of securities. Since you are currently selling securities, your tokens will not be widely distributed and the community will not be sound. As time goes by, new mechanisms will be tried, but so far, no project has gained widespread attention, and it is hard to imagine building a trust base in the world of VC Coin (which is touted by capital institutions). Global settlement layer.

Full-text link https://media.consensys.net/joe-lubins-full-speech-from-devcon-5-how-we-get-to-a-decentralized-world-wide-web-1f83b35b2a0c

Pantera Partner Paul Brodsky: Deep Thoughts on Liba and Global Big Debt Accumulation

Pantera partner Paul Brodsky's deep thoughts on Facebook's Libra, Facebook received a lot of people's ridicule when it bought Instagram in 12 years and bought whatsapp in 14 years, and in 2019, they launched Libra, it seems to encounter the same situation. But everyone seems to ignore that the accumulation of large debts that will occur in the next forty years will require collateral in the form of assets to justify them. There was no cryptocurrency in 2008, that is, there were no legal assets and sovereign currencies that could hedge against oversupply. There are. But no more investors are beginning to shift capital investment to better assets. In this context, Libra got an opportunity.

Facebook bought Instagram for $1 billion in 2012 and acquired WhatsApp for nearly $22 billion in 2014. These acquisitions and acquisitions scorned those who were skeptical. When the deal was announced, Instagram had 30 million users, no revenue, and WhatsApp lost nearly $140 million. Both acquisitions are very sensible and timely. Instagram now generates billions of dollars in revenue, while WhatsApp has nearly 2 billion users in 180 countries. By 2019: Facebook announced Libra, a licensed blockchain that uses cryptocurrencies, and skeptical skeptics are still ridiculing that fears of this latest shift may sacrifice their sense of sovereignty.

The accumulation of large debts that will occur in the next forty years will require collateral in the form of assets to justify them. Credit-driven “wealth” has not only increased dramatically, but credit-based spending has also increased significantly, which has driven output growth and rationalized asset prices. We have actually enjoyed a benign economic boom driven by debt – not subject to long-shrinking output growth, as the only necessary condition for a steadily growing recovery is to lower interest rates (ie, refinancing).

So what happens when the interest rate is close to zero or negative? The longer the credit-based economic development, the greater the systemic balance sheet and the less able it is to withstand the recession (ie, the credit crunch). The central bank lowered interest rates once again to overcome the last credit crunch in 2008. Today, global sovereign debt exceeds $17 trillion, and lenders actually pay debtors to store their "wealth." The reality today is that sovereign debt cannot be repaid in the currency in which it is used, without seriously diluting the purchasing power of these currencies (ie, inflation), thereby seriously reducing the “wealth” measured in these currencies. What will happen to the next recession? There was no cryptocurrency in 2008, that is, there were no legal assets and sovereign currencies that could hedge against oversupply. There are.

So why aren't more investors starting to shift capital investment to better assets, such as cryptocurrencies and private equity in blockchain business? Perhaps those responsible for large sums of money are motivated to accept stagnation, regardless of expected returns. Perhaps investors know that monetary policymakers must support current asset values ​​at all costs, because if they don't, the value of mortgaged system debt collateral will fall, causing a balance sheet recession, as happened in 2008. That? Or both?

In this context, brewing innovation and emerging technologies are easily overlooked by investors. For those who can use it, this is an opportunity.

Full text link: https://medium.com/@PanteraCapital/scale-8e90424f239

Vlad Zamfir: The legal issue of Ethereum is an inevitable crisis

Vlad Zamfir is a star researcher at Ethereum. The article focuses on his point of view in Osaka. The Ethereum/smart contract is actually a kind of "private law" in the sense that it will inevitably challenge or revolutionize our existing legal contracts. We must face this confrontation. And its "big but not down" theory is also very interesting.

Vlad Zamfir issued a warning on Devcon 5: Developers need to start thinking about the legal status of Ethereum, not just the size of Ethereum, so large that the government must accept it.

“Ethereum was born in a counterculture movement, a cryptographic punk movement. In Ethereum, we walked farther than Bitcoin and said that we are not just doing this for money, but for everything.”

He pointed out one of the characteristics of the Ethereum blockchain: the concept of smart contracts, when the contract conditions are met, the code will automatically lead to capital flow. So far, we have seen it as legally binding. “Smart contracts are essentially an esoteric legal form that has been marketed and understood as a substitute for legal contracts.”

There is a general consensus that blockchain is a form of “private law”. This is a blockchain-based contract between two people is considered a private contract between two people, and it is unique.

"What does the law have to do with our legal revolution? It certainly does not do nothing, we are destructive. He said that this will inevitably come to an end. "The things we are doing are too radical and revolutionary, so that the established legal order. Can not be ignored.

Full text link: https://decrypt.co/10215/researcher-vlad-zamfir-ethereums-legal-question-is-an-inevitable-crisis

Hasu Research Paper: Models for Bitcoin Security and Block Reward Declining

This is a new work by writer Hasu, who has been very active before. I feel that Hasu has not written an article for a long time. It should be half a year. In the first half of the year, he wrote a lot of great articles. This article mainly talks about the decline of Bitcoin block rewards. The impact on security.

This is a research paper that successfully owned these security in the first decade of Bitcoin's birth. At the same time, the academic community has largely failed to replicate the robustness of Bitcoin in its model, which has led to the notion that "bitcoin is safe in practice, but not theoretically safe." The article aims to bridge the gap between theory and theory.

Bitcoin can now tolerate high attack motives, motivating miners' motives to be consistent with the system for a long time. The key reason is that mining requires a large amount of up-front investment, and its value is closely related to the health of the network. Basically, any damage to the network's value is devastating before the mine union recovers the return, which explains why many of the attacks that scholars are worried about are actually unreasonable in practice.

The biggest threat to Bitcoin security is more manifested in the protocol itself than any external attacker. A fixed reward for Bitcoin declines, which will result in a lower commitment to miners. If there is no market development, the decline in block incentives poses a significant risk to the future.

Full text link https://uncommoncore.co/research-paper-a-model-for-bitcoins-security-and-the-declining-block-subsidy/

Paul Brodsky, Partner of Pantera: Deep Thoughts on Economic Unity

Pantera's partner, Paul Brodsky, feels "if", saying that it is a sensation, but actually produces more questions, that is, more? Deep thinking on unified economic theory

The author cites many of the former innovation giants who are not optimistic about the latter innovation, and it turns out that they are all wrong. The answer is unclear, but it turns out that the vision of the current authority may not make any sense:

Regarding the adoption and destruction of blockchains, the key question to ask is: How many economies (micro-ecological systems or adjacent nation-state economies) can exist without external forces? What will be the impact of production costs and overall price levels? How will wealth creation and wealth measurement change? Today, can we absolutely (100%) determine whether the blockchain ledger system and the cryptographic assets that use them will be used or not, and then expand? Is it wise to give blockchain private equity and encrypted assets zero weight (0.00%) in our portfolio? There is a more asymmetrical risk/reward everywhere (assuming the market either falls from $250 billion to zero or expands to more than $10 trillion in ten years)?

Full text link: https://medium.com/@PanteraCapital/what-if-787bada07a37