Notes | About the scrutiny of the verifier 100% Slash, a16z talk about open source movement

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

Today's content includes:

1 Celo's Proof of Entitlement (PoS) Mechanism

2 Solana's 100% Slash Penalty – Proposal / Discussion

3 Does cryptocurrency evolve from pseudoscience to primitive science or to religion?

4 A16z: Open source movement, from community to commercialization

5 Bitcoin Macro Discussion Series

Celo's Proof of Entitlement (PoS) Mechanism

This is an article by Celo's PoS mechanism. There are several interesting points in Celo's design. For example, the introduction of the verifier group, "uptime running score", severe punishment, and the like.

In economic design, Celo has innovated in many ways. Some interesting factors are the introduction of a verifier group that separates the rewards of the stakeholders who voted for the verifier group from the rewards of the selected verifier, and finally a “uptime log score” that affects the incentives to inspire long-term Verifier availability.

Celo uses an election mechanism to motivate local asset holders to vote. However, users do not vote directly for the certifier, but instead vote for the certifier group. The certifier group has "members", which are an ordered list of candidate certifiers (each certifier must choose to join himself to the group). The group can add, delete or reorder members at any time. Based on the number of votes received by a group, the verifier group receives compensation by obtaining a portion of the verifier rewards.

The Celo protocol tracks the "uptime score" for each verifier. When the verifier proposes a block, it will also include in the block body each signature it receives from the certifier submitting the previous block. In order for the validator to "validate" on a given block, its signature must be included in at least one of the first ten blocks.

Full text link:


Solana's 100% Slash Penalty – Proposal / Discussion

This is a discussion of the proposal on the Solana forum for 100% Slash penalties for verifiers. There is an interesting discussion. For many PoS projects, from 0-100% Slash penalty, how to find a balance point, maybe here will give you some inspiration.


This may force the verifier to consider risk allocation and promote fair distribution of token rewards between verifiers.

The verification process may be able to attract larger verifier pledges to spread across multiple nodes.

By design, it can lead to a high quality verifier network

It will inevitably promote the development of insurance.


Increase the entry barrier for new certifiers

This may make certain categories of derivatives difficult or impossible.

– Wonderful comments:

Opinion 1:

100% of Slash penalties are turning "carrots and sticks" into "carrots and nuclear weapons."

True decentralization should be measured by the distribution of token ownership rather than commission. Imagine that the government owns all the tokens in a particular blockchain. Even with 10,000 good verification points, they are only protecting the interests of centralized management agencies. The only way to improve decentralization is to reduce barriers to entry, which will promote widespread adoption. I think that stress is not the right direction. I would rather consider the benefits. We should pay more attention to income, value, well-being and love.

Opinion 2:

I do think that long-term PoS needs to be close to 100% cut. However, 100% should be cut only if there is a highly coordinated, apparently malicious attack on the network (for example, a large portion of VP dual signatures). From a network perspective, some scale Slash algorithms (as described by Cosmos / Ethereum) seem to be a good direction.

On the other hand, I also agree with the previous point that it will prevent token holders from participating in mortgages, especially at this early stage. A higher Slash ratio does have a significant impact on the risk/reward calculation. Once the software and validator settings become more mature, you can reduce the risk of Slash. Then, the token holder may be willing to accept a higher Slash because the expected return exceeds the risk.

Full text link:


Does cryptocurrency evolve from pseudoscience to primitive science or to religion?

The cryptocurrency is modern alchemy. Alchemy begins with a pseudoscience, and certain areas of inquiry (such as material research) become the original science, chemistry, which has now become a branch of science.

Meltem believes that encrypted goods are financial alchemy, a movement that is a pseudo-science and religious revival style. A small part of the community of cryptocurrencies will continue to exist, but she believes that the era of "blind faith" is coming to an end. .

In order for our industry to grow and mature, we must move from pseudoscience to the original science. Industry participants and external analysts must be able to identify, collect and analyze data to explain why the industry is important and how it affects technology, markets, politics. , society and our wider world.

Evolved into primitive science. The challenge now is to refine and cover such a large and esoteric thing into its basic building blocks and discrete components for further research and analysis.

Full text link


A16z: Open source movement, from community to commercialization

This article, provided by a16z, focuses on the history of open source development, but emphasizes that business innovation (and especially the rise of software-as-a-service) is critical to the success of the campaign. The revival of the open source movement may just begin, and future giants will Make a lot of investment in open source software. It also provides a framework for bringing open source products to market.

The history of open source highlights the rise of open source as a virtuous circle of technology and business innovation. On the technical side, open source is the best way to create software because it speeds up product feedback and innovation, improves software reliability, expands support, and drives adoption and aggregation of technical talent. Open source is a technology-driven model that has existed since the "free software" era.

However, only by combining technological innovation with business innovation can we fully realize the full potential of open source. Without a business model such as support for paid, Open Core and SaaS models, there would be no open source renaissance.

Economic interests have created a virtuous circle or flywheel. The more business innovation we have, the larger the developer community, which will stimulate more technological innovation and increase the economic incentives for open source.

The success of the open source business depends on three pillars. These are initially carried out in stages, one in turn to the next. In a mature company, they become the backbone of a sustainable business that needs to be maintained and balanced:

Community fit, your open source project has created a community of developers who have made a positive contribution to the open source code base. This can be measured by GitHub star rating, submission, pull request or contributor growth.

Product market fit, users use your open source software. This is measured by downloads and usage.

Value market fit, where you can find the value proposition that the customer wants to pay. The success here is measured by income.

As software devours the world, open source is consuming software.

Today, almost every major technology company from Facebook to Google is backed by open source software. These companies are also increasingly building their own open source projects. For example, Airbnb has more than 30 open source projects, while Google has more than 2,000!

In the future, a virtuous cycle will continue. Technically, artificial intelligence, open source data, and blockchain are some examples of emerging innovations. The next-generation business model may include ad-supported OSS, just as large private companies support open source projects. Data-driven revenue; and crypto tokens monetized through blockchain.

I believe Open Source 3.0 will extend our view and definition of open source business. Open source will no longer be RedHat, Elastic, Databricks and Cloudera; it will at least be Facebook, Airbnb, Google and any other business that has open source as its main content. When we look at open source in this way, the ongoing renaissance may be just in its infancy. The market and possibilities of open source software are far greater than what we have not yet realized.

Full text link:


Bitcoin's macro discussion series

This is the three recent discussions of Nathaniel Whittemore's Podcast column "Bitcoin Macros", including Josh Brown, who explains why Bitcoin is like the railroad boom of the 1800s; Ambre Soubiran talks about Bits The "intrinsic value" of the coin; and Meltem Demirors talk about three things that Bitcoin represents. The topics discussed are very interesting. The content of the conversation will not be listed one by one. Just list the outline. If you are interested, you can look at the original text:

  • Josh Brown talks about why bitcoin is like the railroad boom of the 1800s

Josh said: “Ultimately, technology (railway) has found a profitable, useful method that has been integrated into our society.” “So the cryptocurrency investments that people made in 2017 are stupid, but they have the right ideas. ""

Over the past six months, there has been an increase in dialogue between the Bitcoin industry and global financial leaders. No longer being used as a negligible niche market, more and more people are asking: Is Bitcoin a macro asset? Is it a safe haven? How will it behave in the next recession?

The main contents include:

Why Bitcoin feels like it is against assets, but it does not see the large amount of capital flowing into the turbulent region.

Why the dollar and assets like Manhattan real estate are still the best choice for outflows of wealth.

Given the unique circumstances surrounding the market over the past 11 years, it is not known how Bitcoin will react during the recession.

Why bitcoin and cryptocurrency space are turning back and forth between being too optimistic and too pessimistic.

Why true technical disruption often occurs long after the earliest promoters leave the stage.

The impact of Bitcoin may be quite different from today's assertion of supporting macro, non-sovereign currencies.

  • Kaiko's Ambre Soubiran talks about the "intrinsic value" of Bitcoin

Ambre Soubiran, CEO of cryptocurrency market data startup Kaiko, said: "One thing I have been hearing in the banking world is that 'bitcoin has no intrinsic value.'"

She continued: "This is obviously totally disagreeable." "How can you say that you have a system that can transfer licenses and digitally transfer ownership in a decentralized, secure way? [No value]? Just the system. The fact that it is effective and has been in operation for 10 years is of value, and this is the intrinsic value in my eyes."

The main contents include:

The "macro" origin of Bitcoin.

As time goes by, the bitcoin narrative changes.

Why the ICO boom is a groundbreaking moment for external markets to gain more interest in the cryptocurrency sector.

Why Bitcoin acts as a safe haven is related to local politics and economics.

Why the currency behavior indicates that Bitcoin is expected to become a safe haven in the future.

The near-term risk of Bitcoin in the context of the global economic downturn.

Which order data indicates market conditions.

  • Meltem Demirors talks about three things that Bitcoin represents

The main contents include:

Why cryptocurrencies are widely known throughout the field, but most investors are not registered to buy.

Why Libra is the opposite of Bitcoin in many ways.

Why the dollar is still the most needed asset in troubled areas, and why education is the key to playing this role in bitcoin.

Why speculation is a portal for deeper interaction with Bitcoin.

How the global “seeking gains” shaped the narrative of Bitcoin.

The era of "future fetish" in the development of blockchain.

The idea of ​​why Bitcoin is called “unregulated” is not very accurate.

A new struggle around the central bank's digital currency.

The most interesting indicator of why the cryptocurrency field is the percentage of bitcoin held by third-party institutions.

Full text link: Ambre-soubiran-on-bitcoins-intrinsic-value