The Disrupt Weekend

“I think blockspace is the best product to be selling in the 2020s.

What’s special about blockchain blocks? They’re the global banking ledger. They’re the property rights of the Metaverse. They’re the economies of digital nations. They’re a civilizational trust anchor.

The numbers don’t lie. The market values blockspace. And in the blockspace market, Ethereum has the most valuable blockspace by far. It’s not even close.

Ethereum sold $504m worth of blocks last week—$26 billion annualized. Ethereum did nearly 100x the block sales of Bitcoin. Ethereum did nearly 1,770x the block sales of Solana. Heck, two of Ethereum’s layer 2’s each did over 3x Solana last week. For perspective, if the value of Layer 1 assets were based on block sales then ETH would be over 91% of the market cap for all Layer 1s. 🤯

For perspective, Solana had $100m of issuance costs last week on $40k worth of sales. A net loss of 99.96%. This can’t last forever—in order to become sustainable Solana must increase block sales.

Without valuable blockspace a chain is unsustainable. A company whose costs exceed its product sales isn’t sustainable over the long run. This is the same for chains.

Blockspace is the new oil. Dixon is right. Blockspace is the product of the decade.

See Also: Ethereum Roadmap Update (Recommended Read)

“At 5:15 UTC (00:15 EST) on Sunday, Nov. 14, Taproot, the long-anticipated Bitcoin upgrade, activated at block 709,632, opening the door for developers to integrate new features that will improve privacy, scalability and security on the network.

At the root of the upgrade are “Schnorr signatures.” Bitcoin has been using a cryptographic scheme ECDSA for its “digital signatures”. In addition to being smaller and faster that ECDSA, Schnorr signatures have the added benefit of being “linear,” a combination that will boost Bitcoin’s transaction privacy and allow for more lightweight and complex “smart contracts”.

Taproot will have many positive repercussions for various projects across the ecosystem. For instance, multisignature transactions, which require more than one out of a group of signers to sign a transaction, will be cheaper and will use less data. [Further], while right now Lightning Network transactions stand out on the blockchain, Taproot offers the possibility for them to look just like any other transaction, further enhancing transaction privacy.

The key thing to keep in mind is that Taproot will enable new developments and new solutions. It is giving developers an expanded toolbox to work with as they continue to ideate, iterate and build.

If history is any guide, it could take months or years for wallets to board the train. It took roughly two years for Bitcoin’s last comparably large upgrade, SegWit, to reach 50% adoption, for example.”

“Many cryptocurrency proponents tend to think of bitcoin replacing the dollar or at least providing a parallel alternative. But it’s possible to see a pathway where blockchains and digital assets (a much better descriptor of the tokens for these purposes than “cryptocurrencies”) do away with the need for universal common currencies altogether.

We have a long way to go, but if interoperability protocols and transaction processing can be scaled in a properly decentralized manner, such that buyers and sellers of digital assets can conduct cross-chain atomic swaps en masse without having to trust intermediaries, something akin to a global system of fractionalized digital value exchange is conceivable.

Need a car? You can buy it, not with dollars, but with a portion of another piece of property such as your small stake in that Beeple non-fungible token. Ironically, this vision seems like a new, digital version of an otherwise archaic value exchange system: barter. In this way, using the power to fractionalize digital ownership to any size imaginable addresses at least part of the “coincidence of wants” problem that made that system inefficient for civilizations.

The dollar could remain as the world’s reference price, for example, but there would be no need for people to obtain it in a transaction. In effect, we could strip dominant currencies of their medium of exchange and store-of-value functions while maintaining their unit of account role. Already, central banks in Singapore and the United Arab Emirates are exploring interoperability solutions for their central bank digital currency that would do just that.

Many believe bitcoin, with its censorship-resistant, persistent supply mechanism, could evolve to become the base layer collateral for the global financial system, taking on a role akin to Treasury bonds.

Whether, in this coming world, the dollar fully disappears from the picture or remains a reference price, the expansion of a crypto system implies it could eventually be a universal unit of account.”

Due to the high initial cost of buying/borrowing/breeding Axies, in-game guilds have formed as of late to fund players’ upfront expenses, or offer scholarships, in exchange for their SLP earnings as they play. One such in-game guild is Singapore-based Crypto Gaming United, or CGU, which has close to 100,000 Discord users.

CGU funds all characters/NFTs costs via a scholarship, which can amount to $4,000 per player. What’s more, CGU provides education and mentoring for its partnered players to enhance their cryptocurrency knowledge and gaming skills. In exchange, CGU takes a 50% commission on players’ earnings, some of which are issued to investors of the CGU token; afterward, 5% of earnings go to local management in the countries in which CGU operates, with players keeping the remaining 45%.

Players on the lower end of the earnings can make approximately $120 for 60 hours of play each month (after CGU’s cut). Even this amount surpasses the minimum wage for full-time work in countries such as the Philippines and Russia on a pro-rated basis.”

See Also: How Blockchain Technology Is Transforming Microtransactions and Revitalizing the Gaming Industry

DAOs will likely be the most transformational change in how venture capital (VC) funds operate. Venture funds will have to change how they invest in projects, how they engage with them, and how they bring value. At the same time, though, their own business model might get disrupted by DAOs that themselves become investment vehicles. Web 3.0 will also fundamentally change access to investment opportunities and deliver democratic ways of investing without having to be an accredited investor or without net worth restrictions.

While investment deals are, traditionally, often made behind closed doors with little to no stakeholder involvement, VC funds in Web 3.0 have to engage much more publicly in order to get a seat at the table. Especially in the NFT space, it remains to be seen how VC funds can somehow gain an edge over retail investors.

As DAOs represent the next generation of VC funding, VC funds are not only investing in and participating in DAOs, but are becoming DAOs themselves. Stacker Ventures is an example of a VC fund becoming a DAO, which is attempting to democratize early-phase investments in emerging assets. BitDAO, which is a protocol governed by BIT token holders, is one of the world’s largest DAOs focused on delivering open finance and a decentralized, tokenized economy. PleasrDAO, an investment and art acquisition platform, collects digital art that represents and funds important ideas and movements cemented on-chain as NFTs.

VC is primarily a social investment tool to coordinate resources around a shared investment thesis. And Web 3.0 will enable innovative new ways in which people can come together to pool capital and other resources that go way beyond the rigid structures we see in the current VC landscape.”

Music producers and sports stars are monetizing themselves with social tokens. Brands are next, and marketers should take notice. Unlike loyalty points, tokens are programmable and can be wired to do certain things.

Instead of United [frequent flyer] points, those will eventually be social tokens. Those will grant access to their website and premium content, and to watch movies on the plane. Maybe this United token will let you access the lounge at the airport. Or if you tweet positive things about United, you’ll automatically get UNITED zapped to your wallet.

Social tokens put the power in the hands of creators. Creators have an independent economy that they own wholly.

Historically, even the stars of NCAA football and basketball teams, who drive an estimated $18.9 billion in profit to their universities, have never received a nickel. Then something extraordinary happened: All nine Supreme Court justices agreed on something, deciding, in June, that student athletes could now profit from their NIL, or “names, images and likeness.” Suddenly they’re eligible for social tokens. ‘These college athletes have valuable brands, and they’re going to make a lot of money.’

Some have already started. Jaylen Clark, a sophomore guard on UCLA’s men’s basketball team, created the $JROCK coin on Rally. Bruins fans can buy $JROCK for the current price of $0.63, essentially betting on his future. They’re buying a new kind of equity. If, one day, Clark gets drafted into the NBA and becomes an All-Star? This could make his fans rich.

Rally, which launched in October 2020, said it has 212 creators, of which 74% have built six-figure mini-economies with their tokens, and five have built ecosystems worth more than $1 million.”

“VanEck’s bitcoin futures exchange-traded fund (ETF) is set to debut on the Chicago-based CBOE exchange on Tuesday, going live after delays since winning SEC approval in late October.

In October, the SEC greenlit the ProShares Bitcoin Strategy ETF, which subsequently listed on the New York Stock Exchange (NYSE). Following ProShares’ much anticipated ETF launch, Valkyrie Investments’ bitcoin futures ETF started trading on the Nasdaq a couple weeks ago.”

“While the Indian government is cognizant of risks associated with cryptocurrencies, it intends to take “progressive” and “forward-looking” steps on the matter, sources told Indian news agency Asia News International (ANI) after Prime Minister Narendra Modi chaired a meeting on cryptocurrencies’ future in the country.

The government is cognizant of the fact that this is an evolving technology; hence the government will keep a close watch and take proactive steps.

The Indian government has been sitting on a crypto regulation bill for at least a year. Officials have softened their stance on cryptocurrencies in recent months and have invited crypto representatives to discuss the opportunities and challenges of the industry in a meeting scheduled for Nov. 15.”