CeFi and DeFi will eventually fight

Shinji Satoshi: The best quality article of 5 cryptocurrencies is selected every day.

Today's content includes:

1 cryptocurrency bank and currency agreement (Cefi and Defi will eventually fight)

2 Miners say: Bitcoin will collapse or double in price after halving?

3 Network effects in blockchain games: content is still king

4 cryptocurrency (Ethereum) financial fan love

5 The cryptocurrency community is differentiated by China's blockchain policy

Cryptographic currency banking and currency agreement (Cefi and Defi will eventually fight)

This is the work of Bankless author Ryan Sean Adams. He often milks Defi and Ethereum. The original title of this article is the cryptocurrency bank and currency agreement. I have slightly modified it. There will be a battle for Cefi and Defi. I think There are two points in his article that are quite interesting. One is that "the currency of the Web 2.0 era is data. Google, Facebook are all data aggregators. The cryptocurrency is capital, the essence is money, and success needs to be a capital aggregator." "The other is "Cefi and Defi's depth, the boundaries will be blurred. Cefi may become more like Defi. Defi will become more like Cefi." The following is a summary of the essence:

Cefi and Defi compete for the same treasure. They have similar services: credit, interest, stable currency, exchanges, assets. But use a different approach. One goes to the license limit and the other is the compliance. Unreconcilable differences.

The term Cefi is used to describe centralized exchanges such as Binance, BitMex and Coinbase, as well as lending providers such as BlockFi and crypto.com.

Defi, these are Maker, Uniswap, Set Protocol, Compound, Synthetix. They offer services similar to Cefi, but they are built on Ethereum as a license-free programmable protocol.

They are all part of the cryptocurrency financial system. However, Cefi is closed and you need to get permission to use them. Defi is open and open source, no license required.

Capital competition

Cefi competes with Defi's capital

– (Exchange) Coinbase and Uniswap compete for liquidity and trading volume

– (borrowing) BlockFi and Compound competing for borrowing capital

– (Stable currency) USDT and DAI compete for stable currency funds

– (Derivatives) BitMex and DyDx compete for derivatives

– (Investment) Bitwise and Set compete for index fund capital

This game is to get as much value as possible. The currency of the Web 2.0 era is data. Google, Facebook are all data aggregators. The cryptocurrency is capital, and the essence is money. Therefore, to be a successful Cefi or Defi, you must be a fund integrator.

Cefi has some advantages:

– user experience

– fluidity

– French currency entry

– speed

Defi's advantages

– global

– unmanaged

– programmable

– Go to permissions

Looking to the future

As Cefi and Defi go deeper, the boundaries will be blurred. Cefi may become more like Defi. Defi will become more like Cefi, and most of it will become a fusion product. Coin launched its own chain and Dex and tried to become Defi. Maker's launch of multi-collateral DAI will also make them more like Cefi.

The basic cryptocurrency and the banks and protocols above form the cryptocurrency system. It is important to pay close attention to Cefi and Defi. According to what is happening now, the BTC and ETH development paths will be deeply affected.

Full text link: https://bankless.substack.com/p/crypto-banks-vs-money-protocols

The miner said: Will Bitcoin collapse or double the price after halving?

This is an interview with a miner made by Bitcoin.com. It is mainly about halving the price of Bitcoin next year. Will the price of Bitcoin double or collapse? How will the mining industry adapt to its half-year revenue stream? See what professional miners around the world have to say about this.

The full list of mining experts interviewed includes: Genesis Mining CEO Marco Streng; F2Pool Global Business Director Thomas Heller; Hyperblock Inc. CEO and Board Chairman Sean M. Walsh and many other senior miners.

With the halving, we seem to be able to see the centralization of the business. Those who have more computing power and can use cheaper energy will survive the market operations that require higher margins to survive and profit. “Half is a cruel eradication,” Marco Streng explained. "It immediately eliminated the inefficient miners and was merciless."

Regarding the impact of halving on prices, the differences of opinion are relatively large. We may see prices double, as miners will need to maintain their current source of income or take off shortly after halving. Sean Walsh commented: "If you are six months before halving and six months after halving, you will see a sharp rise in bitcoin prices." "As a miner, know your income stream will It's a little scary to cut in half overnight.

Full text and video link: https://news.bitcoin.com/will-bitcoin-double-in-price-after-the-halving-miners-have-their-say/

Network effects in blockchain games: content is still king

This article is mainly about:

– Explore two key moments in the history of console games (Atari vs Nintendo; Nintendo vs Sony), who won; – Similar to the "blockchain gaming platform" to understand the conditions required for success.

Atari and Nintendo, the two most important companies in the rise of the gaming game industry.

Atari's strategic decisions are based on the market in which it operates. To win platform competition, Atari opens its systems and gives control to game developers. It does this by licensing most of its content, such as Taito's Space Invaders and Namco's Pac-Man. This decision helped them quickly develop the network and win the platform competition, but Atari lost control of the network.

Nintendo took the opposite approach: a closed network of content development. The advantage of this approach is that Nintendo can maintain control of the network, but at the expense of slow growth. This strategy works because there are great games like King Kong, Mario and Zelda. They use this high quality content to guide their user base and then draw developers to their platform. In fact, by 1987, Nintendo had a powerful platform, so that they put forward relatively harsh terms for game developers. Nintendo is doing this to maintain control over network quality, and developers agree, because Nintendo's network is valuable.

Nintendo vs. Sony. Sony almost uses a strategy like Atari, but why did Sony win and Atari lose? Because the competitive environment at the time changed.

Market: In 1996, the console game industry was more mature and had a large number of high-quality third-party developers. Architecture: The PS1 architecture (CD-ROM) provides developers with an order of magnitude added value, while the 7800 architecture is at a disadvantage relative to the NES with a focus on developers: Sony simplifies the work of third-party developers as much as possible. PS1's direct hardware architecture, development tool suite and C language support make it easier for developers to program 3D graphics.

Content is king

The history to date proves two important points:

– Open networks have the advantage of rapid growth, but sustainability depends on the quality of the content on the network.

– The best hardware rarely wins video game wars, but a great architecture usually leads to better content, and that's true.

Most importantly, the network and architecture model is the means to an end: content that satisfies the user. In the blockchain industry, scalability and decentralization are sometimes their ends.

Scalability

Scalability (ie, transaction throughput) is unlikely to be a winning factor in blockchain platforms. NES shows us that high quality content can be created despite the technical limitations of the underlying platform.

Network model

Open networks alone will not be a winning weapon for blockchain-based gaming platforms. For a large number of high-quality "original blockchain" third-party developers, the market is still immature, NES tells us that developers are concerned about users, and users are concerned about content. Early winners are likely to have their own internal development studios or exclusive agreements with traditional third-party developers to guide content on the web.

It is not necessary to calculate the game state for a blockchain. Conversely, when the game state is off-chained, the blockchain can act as a data layer. This allows the blockchain to do its best. In short, the blockchain works well as a value layer for the game.

People play games because they are interesting, not because they are built on blockchains. This means that the threshold for success is high because competition is not just about smart contract platforms, but also about powerful hardware and beautifully designed experiences.

Full text link: https://hackernoon.com/network-effects-in-blockchain-games-content-remains-king-ic1m3625

Financial fan of cryptocurrency (Ethereum)

ETH is Money is the resounding slogan of the recent Ethereum community, but slogans like “blockchain is finance” and “Ethereum is money” may actually prevent the blockchain like Ethereum from playing its full potential.

Since its inception, Ethereum has been a healthy contradiction to finance, money and law, just like the Bitcoin white paper.

If you want to create a common blockchain operating system with Turing's complete programming language, why limit the system's functional dapps and favor financial-based applications?

Although forks have always been a key governance lever and a check and balance tool, Dragonfly Capital's latest article attempts to show that this has become increasingly difficult in the Ethereum field.

When people start to think of blockchains as "wealth" of money and money, they are actually just pricing a cyberattack.

Nakamoto's genius is designed to use this price tag to reduce the risk of defense. The bigger genius is to convince potential attackers that the value of a decentralized trading network denominated in BTC or ETH is far greater than the legal liquidation that an attacker may achieve. income.

What is the price of an open global blockchain? If pricing at legal price

Blockchain ~ financial homology has serious flaws. Even if you see yourself as a blockchain staker that is purely monetized by money, you should also see that the blockchain's currency premium comes from decentralization, not just “digital scarcity.”

The blockchain financial framework (Bitcoin is "the most reliable and secure financial network in the world; Ethereum is a financial infrastructure; etc.") directly threatens decentralization. True decentralization is why blockchain tools have a legal currency value. In a paradoxical situation, the blockchain financial framework has destroyed and depressed the value of cryptocurrencies. In other words, attacks and network failures have been factored in prices.

The financial fetish of cryptocurrency may be just that people are more concerned about protecting their own "financial property" than about protecting the blockchain.

After Nakamoto, (1) ensuring one's financial property security and (2) protecting the blockchain are two different facts that may actually be incompatible.

  • The financial framework is not a benign or cost-free narrative tool.
  • Calling Bitcoin/Ethernet a “financial network” and calling Bitcoin/Ethernet a “money” (or another type of financial instrument) may have a rising effect in the short term. But in the long run, financial superstition of cryptocurrency is a one-way road.

DeFi is available throughout the entire encryption world. As we have seen, the proposed theme is not limited to finance, DeFi, etc. The issue discussed here is a manifestation of a broader trend, which we call financial confession of cryptocurrency. One of the most disturbing parts of this fascination is that as long as the price rises, it tends to rationalize anything. Even decentralization and anti-review values ​​are no longer meaningful.

Full text link: https://medium.com/cryptolawreview/cryptos-finance-fetish-7cc88b4cf081

The cryptocurrency community is differentiated by China's blockchain policy

Author Priyeshu Garg is an analyst at CryptoSlate, a foreign currency media. There is also a review of his market volatility caused by recent concerns about China's blockchain and its impact on the community.

Many people believe that China's encouragement of blockchain research and innovation is the reason for Bitcoin's massive rebound last week, with bitcoin prices rising more than $1,000.

Some people have called on China to "grab the opportunity" and "lead in the leading position" in the blockchain. This seems to some people to be a direct attack on the United States. They lack new regulations, and the review of LIBRA is becoming more and more strict. The development of blockchain and cryptocurrency.

Few developments in encryption technology can be as deeply disrupted as China's blockchain policy support. Half of the cryptocurrency community praised China's positive attitude toward emerging technologies, but the other believes that this means so much government oversight of the blockchain, which is dangerous for the future development of cryptocurrencies.

Full text link: https://cryptoslate.com/crypto-community-divided-over-chinas-blockchain-law/