“Overwhelmingly, the two public blockchains with the greatest degree of gainful use today are Ethereum and Bitcoin, and frankly it’s not even close. Both of these blockchains provide value to their users, to the point where users are willing to pay significant fees to use them.
The value proposition for Ethereum and ETH is:
- Maximally censorship-resistant transactions with ETH and Ethereum-based assets
- Expressive, smart-contract based interactions with ETH and other Ethereum-based assets; including use in a a robust and composable ecosystem, within an economy where billions of dollars of value are transacted each day
- Use of ETH as a “programmable store of value” asset in DeFi, etc.
- Use of ETH as a “unit of account” for NFTs and other digital goods and services
- Use of ETH as a “medium of exchange” to pay for Ethereum block space (via “gas”), as well as other digital goods and services within the Ethereum economy
And for Bitcoin and BTC, the value proposition is:
- Maximally censorship-resistant transactions with BTC
- Use of BTC as a “store of value” macroeconomic asset
- Use of BTC as a “medium of exchange” to pay for Bitcoin block space
The biggest elephant in the room for other chains right now is Ethereum Layer 2 technology (L2). If successful, this could scale Ethereum by orders of magnitude, all while relying on Ethereum for security. These rollups could also natively interact with Ethereum-based assets and inherit trust-minimized operation directly from Ethereum, i.e., Layer 1 (L1).
In this world, economic settlement & security become the primary value proposition of Ethereum L1, and L2 is used as a computational layer.
The real question is will other L1 blockchains provide a real value proposition people are willing to pay for? In their current state, many occupy an uncomfortable middle-ground between decentralized Ethereum and centralized side chains. Over time, as these chains prove they have fair, censorship-resistant operation and perhaps develop dynamic economies, they may become more attractive. But so far, based on actual paid & gainful use, the market is saying there is not a unique value proposition for these chains.
Further, it is very unlikely that other L1s at this point will be able to develop their native tokens into a form of money, thereby earning a monetary premium demand on top of basic utility and speculative demand as BTC and ETH have. Over time, I actually expect monetary premium is where ETH will draw most of its financial value—with growing use as a programmable store of value in DeFi and as staking collateral.
In general, I suspect that Ethereum L2 will address most, if not all, needs over time.”
See Also: Ethereum Scalability Race
“Back in 2016, the idea of a collectively owned vehicle for the Ethereum community to invest together was ‘born’ as The DAO.
As many of us know, this early experiment ultimately ended in drained funds, a hard fork and a good few years of ‘PTSDAO’. The implementation of this experiment is famous for having failed on a technical level, but perhaps more importantly, the community, tooling, and breadth of investable projects weren’t really ready five years ago.
Fast forward to early 2020, and the soil for a decentralized venture fund was much more fertile.
MCV sees a future where decentralized technology will serve as the backbone of venture funds, investment clubs, startups and more. A world where most people work for a DAO rather than a traditional company, where remuneration and value exchange is discussed in an open and transparent manner, and where no person has an unfair advantage over another.
We’re finding new ways to coordinate, incentivize, collaborate, and new tooling to empower all of this.”
“It’s an irony not lost on anyone: the biggest company in the Bitcoin business is… a trusted middleman.
But how long can Coinbase thrive as more and more financial activity moves online natively? What happens to the original fiat-to-crypto on-ramp when people stop needing on and off ramps because all the money they earn and all the places they spend it are on the leaderless record-keeping systems known as blockchains?
That bridging process is going to take decades.
Coinbase prevails today on [user experience] and easy onramps for US retail. Both will be commoditized in DeFi over time – open systems inspire and mobilize developers to tackle both problems aggressively in a way that a closed monopoly like Coinbase never can.
You cannot discount how important this function is to putting crypto into the wallets of the next hundred million users and beyond. That said, DeFi is maturing rapidly, and will continue to offer complementary solutions that give users maximum control.
I would say the biggest threat to Coinbase is from banks not from DEXs, that’s my view. If banks start letting customers buy crypto from within their checking accounts, there won’t even be a need for users to connect Coinbase to their bank.
If crypto is money native to the internet, using it with a nice user interface while borrowing a stranger’s identity (the exchange’s) will always be tourism. Anyone who visits blockchains often enough will want full citizenship eventually.”
“Polygon’s goal is use their existing experience with Matic to build infrastructure to allow developers to easily deploy their own L2 systems all with bridges to Eth. As a key proponent of a multichain Ethereum, we think that a Polygon world with many L2s makes sense and the case for Connext much stronger.
Connext will be used for fast, frequent L2-L2 interactions between Polygon chains. Using Connext, these applications will be able to enter and exit Matic with fast, simple UX and will also be able to interact directly with other EVM-compatible systems like xDai and BSC.
As a first step in the partnership, we’ve integrated Connext into wallet.matic.network for fast USDC and USDT transfers between Ethereum and Matic. Currently, the Matic wallet takes 6–7 minutes for onboarding and up to 3 hours for offboarding using the POS bridge. With Connext, this time is reduced to a couple of minutes at most.
In the longer term we expect to work with the Polygon team on researching more generalized communication between Polygon chains, with the goal of creating a Polygon/Ethereum equivalent to IBC.”
See Also: Kyber DMM beta is Live!
“Savvy traders are locking returns of over 40% in the wake of bitcoin’s widening contango – the spread between prices in futures and spot markets.
Acarry trade taken now will yield an annualized return of 44% to 48% – a number significantly higher than interest rates on crypto deposits offered by lending platforms such as Genesis and BlockFi or government bond yields in emerging economies.
With the premium on bitcoin futures expanding to as high as 40% per annum for the June expiry, there is a lot of interest from cash and carry traders to arbitrage the premium and lock-in risk-free gains.”
See Also: JPMorgan: A Bitcoin ETF Could Dampen Yields on Bitcoin Futures
“Bitcoin’s price neared its all-time high of $61,712 early Saturday while ether set a new all-time high at $2,190.
The price action comes just days before leading U.S. exchange Coinbase begins trading on Nasdaq in one of the crypto industry’s most anticipated events. A sign of the maturing market, the listing will likely give Wall Street traders their most accessible bet yet on growth in the space.
Bitcoin bulls were further bolstered on Friday by the idea that an exchange-traded fund (ETF) with exposure to the digital asset space might be approved in 2021, after the Securities and Exchange Commission (SEC) confirmed it was reviewing ETF giant WisdomTree’s application.”
“VET’s price growth in 2021 has largely been stimulated by the adoption of its supply chain tracking technology. The price of VET has increased more than 400% over the past two months.
On April 8 the team announced a collaboration with the software company Salesforce. VeChain’s technology has also been utilized on several projects that are managed by its partner DNV. DNV uses VeChain’s blockchain solution to manage the data from projects with the Danish company ReSea and the Norwegian industrial company Hydro.”