Today's content includes:
1. Cryptium labs: The Ethereum Foundation is unable to fund core development;
2. 5 predictions for DeFi in 2020;
- Can Ethereum go to the high-speed development of centralization finance, can it trigger the next round of blockchain bull market?
- Decentralization + Finance Ethereum killer application? Li Qiwei: DeFi is terrible
- DeFi locks up to $ 1 billion milestone but cannot be taken lightly
- Ethereum's Economic Bandwidth Theory: Billion Dollar Market for ETH
- ETHDenver, the largest Ethereum hacker in the U.S .: What are the continuous new projects for DeFi?
- Ethereum 2019: year after year, continuous expansion
3. Whether the success of cryptocurrencies is nonsense based on whether it has become mainstream;
4. Defi seems to have known each other;
5. Defi Getting Started Guide for Binance Academy.
Cryptium Labs: Ethereum Foundation is unable to fund core development
This is Cryptium Labs founder Adrian Brink's comment on the conversion of one of the Ethereum development teams, Parity Ethereum, to the DAO ownership and maintainer model. The main core opinion is to criticize the status of the Ethereum Foundation, so that Hudson Jameson and Parity of the Ethereum Foundation also have CTO's mutual comment. Adrian himself is the developer of Pokadot / Tezos / Cosmos. The comments are as follows:
Adrian Brink (Cryptium labs): Newer protocols with on-chain governance have the ability to pay core development costs. Ethereum's inability / unwillingness to pay for one of the core development teams is a clear consequence. I think it's easier to think about token distribution. For example, it is reasonable to provide 2-3% additional tokens in 10 years. Ethereum is valued at more than 10 billion U.S. dollars. Can the contributions of stable core developers not bring 1% value-added to Ethereum in ten years?
Hudson Jameson (Ethereum Foundation): The foundation gave them a partially paid grant. Parity is actually focusing on technologies other than Ethereum (Boca), this is not a funding issue you imagine.
Adrian Brink (Cryptium labs): Agree that this is an opportunity cost issue, not a cost issue. The Ethereum ecosystem does not compensate for their opportunity costs, so their behavior is reasonable.
Lefteris Karapetsas (Ethereum development): As Hudson Jameson said, this is not a funding issue. The Ethereum Foundation actually funded them. They originally had a lot of ETH but were hacked. Now they have no incentive to continue developing in Ethereum, because they cannot get rich by holding Ethereum.
Adrian Brink (Cryptium labs): This is an opportunity cost issue. The Ethereum ecosystem needs to allocate real Ethereum to core developers, otherwise only early Ethereum investors will care about Ethereum.
Alexandra Heller (Parity): This is both an opportunity cost and a cost issue. Parity received $ 2.5 million for ETH 1.0 work. However, Parity's development and maintenance customer costs far more than that. During the peak development phase, Parity spends approximately $ 4 million annually on Parity Ethereum customers.
Hudson Jameson (Ethereum Foundation): I hope you fully explained the cost issue in the blog post announcing OpenEthereum. But the blog shows that this is a shift in priorities due to feedback from stakeholders, and you turn to Poca.
Fredrik (Parity CTO): I have explained it again and again in conferences, lectures and podcasts. I was talking to Peter (Geth) some time ago, and he was angry because the Geth team was paid less than Parity's 2.5 million. The salary of a team is far from what it should be. Do you have any psychological pressure? I don't think we need to explain in the blog post, right?
Hudson Jameson (Ethereum Foundation): The blog just didn't show the full picture, which is why I said that I wanted to do it. It only mentioned the perspectives and focus shifts of stakeholders. I admit that I should not say "this is not a funding issue". Including this situation, things are multifaceted. I don't believe "Parity is giving up on Ethereum." Parity's blog post doesn't state that this is a money issue, it should have been. I believe this will reduce the hostility to you in the community.
Full text link https://twitter.com/adrian_brink/status/1206667247772749826
5 predictions for DeFi in 2020
Wave Financial writes five predictions for Defi for the coming year:
1. Stablecoin market value will exceed $ 15 billion
In 2019, the total market value of stablecoins has increased from about $ 3.3B to $ 5B + by about 50%, and Tether's dominance has reached ~ 80%. The 3x growth of stablecoins will come from multiple fields: – Libra launch – New stablecoins from CELO, Velo, Saga, Franklin Templeton, etc. – Growth of landing use cases – Multi-collateral Dai accepts new assets as collateral (BTC, Treasury bonds) – Increased desire for returns in a negative interest rate environment
2. Interoperability will be achieved in 2020
In addition to Keep's tBTC, Thorchain, Ren mainnet, the growing Cosmos ecosystem, Interledger Protocol, Kava, 1 way pegs, 2 way pegs, bridges, and atomic swaps, Polkadot will be released in 2020.
Despite the inevitability of interoperability, I think the biggest impact will be around Bitcoin. In the ocean of cross-chain competition, I believe that by 2020, these tradeoffs will be met and eventually BTC will be carried out between the various chains Trust exchange solution.
3.BTC will replace Ethereum as the main value locked in DeFi
Bitcoin's liquidity is 3 times that of ETH, and its market value is 8 times that of ETH, and its historical volatility is not as good as ETH, making it an advanced form of collateral. Once the cross-chain is completed, Bitcoin will replace Ethereum as the main base value of Defi.
4.Rollups and non-custodial exchanges will increase the share of decentralized exchanges by ten times
ZK Rollups is particularly expected to increase the throughput of ETH to over 2k + TPS. Cryptocurrencies have been scrutinized by more and more regulators. Many exchanges have delisted assets such as privacy coins, while exchanges as custodians bear high regulatory / insurance costs. As this technology finally catches up with the hype in 2017, decentralized exchanges will gain considerable market share by 2020.
5. Mortgage ratio will remain above 100%
The introduction of less volatile collateral, such as Treasury bonds, USDA-entrusted stablecoins, gold, real estate / invoices, etc., is expected to reduce the collateral ratio. Given the inherent volatility of crypto collateral, collateral ratios will always need to provide a meaningful buffer.
Full text link: https://medium.com/wave-financial/5-predictions-for-defi-in-2020-b888398413cd
Whether the success of cryptocurrencies is nonsense based on whether they have become mainstream adoption
This article is a review of CoinDesk's 2019 annual review, interviewed by Jill Carlson, co-founder of the non-profit research organization Open Money Initiative, which is committed to safeguarding the rights of a free and open financial system and co-hosts What Grinds My Gears podcast. She has also worked as a consultant for startups such as Algorand, Risk Labs, dYdX, CoinList and Tezos.
Why haven't cryptocurrencies become mainstream?
"It cannot expand."
"It's hard to use."
Or maybe it should never go mainstream.
Cryptocurrencies cannot solve mainstream problems. Bitcoin creator Satoshi Nakamoto describes cryptocurrencies as a free tool. He compared it with other Tor-like peer-to-peer networks that are similarly resilient to censorship. We can see that this is indeed the way Bitcoin is used from China to Palestine. In addition, we have little quantitative data to show that cryptocurrencies are more used in countries with financial restrictions. These results and predictions about cryptocurrency adoption have been around for many years. It's time to face this reality: Cryptocurrencies are most useful when breaking laws and social structures.
As an industry, we spend a lot of time thinking about how to drive mainstream adoption of cryptocurrencies. I don't want to live in a world where cryptocurrencies have become mainstream. If anything, the world is a very scary place.
This is not to prevent or devalue any work done to improve decentralized technology or. Many projects in the industry are working to eliminate the shortcomings of this technology. Improvements in Layer1 and Layer2, a large number of applications are building more user-friendly wallets, fiat portals, exchanges and other tools. All these developments are important, but they may never lead to mass adoption. Venezuelans and Chinese businessmen prefer to use BTC or Tether for cross-border trade?
Whether cryptocurrencies are nonsense based on whether they have become mainstream adoption.
Full text link https://www.coindesk.com/cryptocurrency-is-most-useful-for-breaking-laws-and-social-constructs
Defi looks familiar
In the historical development of finance, there are important models, most notably the systemic crisis related to the collapse of asset prices or income streams and the repeated interaction between financial innovation and regulation. Understanding these relationships can help architects of an open, automated crypto financial service called DeFi to assess potential risks and prepare for different economic and regulatory scenarios. This article highlights some relevant historical precedents and considers the potential long-term impact of this latest wave of financial innovation.
(1) In England in the late 18th and 19th centuries, limited liability was combined with a transferable shareholding system. (2) The development of the US financial crisis in the late 19th and early 20th centuries. (3) The stock market boom of the 1920s, the crash of 1929, and its regulatory consequences in the United States. (4) After the collapse of the Bretton Woods system in 1971, especially in the United States, more and more deregulation and technological development worldwide have led to the 2007-08 Global Financial Crisis (GFC).
Financial innovators tend to underestimate the reasoning behind the existing systems' institutional and regulatory arrangements, which represents the result of long and trial and error in a changing economic and political environment. A reasonable understanding of technological and social change in the cryptocurrency financial industry ("old systems are obsolete") is driven, but considering the young people in the industry, there is also a relative lack of experience and historical perspective. In other words, each generation must experience its own hands-on experience while working to maximize the unique possibilities of its time.
Cryptofinancial technology offers unique opportunities to democratize financing channels and make the economic system more efficient and transparent. However, it also has the potential to create new forms of systemic risk, especially as the role of crypto assets and DeFi applications in coordinating actual economic activity continues to increase. As the complexity of the system increases, the ability of humans to understand and directly control or control the system may decline. Time will tell if this is an ideal function, at least as long as finance can achieve its basic purpose, namely, the sustainable realization of the necessary activities for health and happiness.
Full text link https://medium.com/@mariolaul/the-defi-d%C3%A9j%C3%A0-vu-52bc68fd103a
Binance Academy's Defi Getting Started Guide
A Defi Getting Started Guide from Binance Academy. After all, it is a getting started guide, so a lot of content is a cliché, but there are still some interesting points. It has a dubbed version, and it has two parts. What are the challenges that DeFi faces: 1. Poor performance; 2. High risk of user errors; 3. Poor user experience; 4. Chaotic ecology System, and specifically explain what is the difference between DeFi and Open Bank? This is also a point that has not received much attention in many Defi articles.
Full text link https://www.binance.vision/blockchain/the-complete-beginners-guide-to-decentralized-finance-defi