September 22

Sunday Reading. Grab a coffee and dig in — Highly recommended read!
(Part 1 is summarized below)

“The innovation behind the Internet was to make data cheap, available, and infinitely copiable. However, cheap, available, copiable is the opposite of what money and value is. Money and value is by definition scare, expensive, and difficult to access.

When Bitcoin solved the Internet’s double-spend problem, it achieved creating Internet scarcity. However, with Bitcoin, this is only true if you are sending bitcoins; the Bitcoin protocol only provides scarcity to bitcoins, nothing else.

This is where Ethereum comes in: a platform for providing digital scarcity for any digital asset. “Tokenization”, and the ERC20 standard, is the printing-press for digital scarcity. As a result, Ethereum has become the asset-agnostic settlement layer for the Internet. Because of its permissionlessness and openness, any asset can come to Ethereum and use it for management of its scarcity and settlement between parties.

Ethereum exists as a new layer on the Internet. Ethereum is the value-layer of the Internet.

The Internet of Web 2 is the Internet of centralized databases and centralized data. While the Internet of Web 2 is saturated, and dominated by gargantuans, Web 3 provides an unclaimed landscape of potential value-applications.

Open Finance on Ethereum has begun to lock-in Ethereum as a global value settlement platform. The open finance movement that started as a curiosity in 2018, has erupted into what is perhaps Ethereum’s main purpose: A network for permissionless financial applications and services.

“With the Token Builder, you can create tokens that track the price of anything (the S&P 500, the # of Twitter/IG followers someone has, the # of upvotes your meme has…). All you have to do is choose the price feed and deposit DAI.

UMA is a decentralized financial contracts platform built to enable Universal Market Access. Use UMA’s self-enforcing contract design patterns and provably honest oracle mechanism to create your own financial products.”

“Introducing Charts, a new tool for traders, researchers, and journalists to compare up to ten cryptocurrencies at one time across multiple sentiment, fundamental, and market metrics.”

“The main result is that lightning network is as secure as bitcoin. An honest participant of lightning network can only lose their money if the signatures or the hash function used by bitcoin are broken.

While the specification verification is an important step, it only applies to the code blueprint of lightning and not the software implementations that have been produced by developers. There are three main lightning network implementations. ‘Our analysis is based on the formal specification, not an implementation.'”

“This guide will walk you through how to set your computer up to interact with the beta when it launches on the 24th of September