Notes of Satoshi Mamoto: CeFi and Defi will eventually fight
Notes of Satoshi Mamoto: Select 5 latest high-quality articles on cryptocurrencies every day
Today's content includes:
Today's content includes:
1 Cryptocurrency Bank and Currency Protocol (Cefi and Defi will eventually fight)
2 Miners Say: Will Bitcoin Crash or Double in Price After Halving?
3 Network Effects in Blockchain Games: Content Is Still King
5 Cryptocurrency Community Divided Over China's Blockchain Policies
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Cryptocurrency Banking and Currency Protocol (Cefi and Defi will eventually fight)
This is the work of Ryan Sean Adams, the author of Bankless. He often milks Defi and Ethereum. The original title of this article is Cryptocurrency Banking and Currency Protocol. I have slightly modified it. There will be a battle between Cefi and Defi. I think There are two interesting points in his article, one is "the currency of the Web 2.0 era is data. Google and Facebook are all data aggregators. Cryptocurrency is capital, the essence is money, and success needs to be a capital aggregator "; the other is "the deepening of Cefi and Defi, the boundaries will also blur. Cefi may become more like Defi. Defi will become more like Cefi". The following is the essence summary:
Cefi and Defi compete for the same treasure. They have similar services: credit, interest, stablecoins, exchanges, assets. But with a different approach. One goes to license restrictions, the other complies. Irreconcilable differences.
The term Cefi is used to describe centralized exchanges such as Binance, BitMex, and Coinbase, as well as lending providers such as BlockFi and crypto.com.
Defi, these are Maker, Uniswap, Set Protocol, Compound, Synthetix. They provide similar services to Cefi, but they are built on Ethereum as a permissionless programmable protocol.
They are all part of the cryptocurrency financial system. However, Cefi is closed and you need to ask permission to use them. Defi is open and open source, without permission.
capital competition
Capital competition between Cefi and Defi
- (Exchanges) Coinbase and Uniswap compete for liquidity and volume
- (Lending) BlockFi and Compound compete for lending capital
- (Stablecoin) USDT and DAI compete for stablecoin funding
- (Derivatives) BitMex and DyDx compete for derivatives
- (Investment) Bitwise and Set compete for index fund capital
The game is about capturing as much value as possible. The currency of the Web 2.0 era is data. Google, Facebook these are data aggregators. Cryptocurrency is capital, and its essence is money. Therefore, to become a successful Cefi or Defi, you must be a fund integrator.
Cefi has some advantages:
- user experience
- fluidity
– Fiat currency entry
- speed
Advantages of DeFi
– global
– unmanaged
– go to permissions
looking to the future
looking to the future
Full text link:
Full text link:
https://bankless.substack.com/
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Miners Say: Will Bitcoin Crash or Double in Price After Halving?
This is a miner interview done by Bitcoin.com, mainly about the price of Bitcoin halving next year, will the price of Bitcoin double or collapse? How will the mining industry adapt to its revenue stream being halved overnight? See what professional miners around the world have to say about it.
The full list of interviewed mining experts includes: Marco Streng, CEO of Genesis Mining; Thomas Heller, Global Business Director of F2Pool; Sean M. Walsh, CEO and Chairman of the Board of Directors of Hyperblock Inc., and many other senior mining practitioners.
As the halving gets underway, we seem poised to see a centralization of that business. Those with greater computing power and access to cheaper energy will survive market operations that require higher profit margins to survive and profit. “The halving is a brutal wipeout,” Marco Streng explained. “It weeds out inefficient miners immediately and without mercy.”
Full text and video links:
https://news.bitcoin.com/
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Network Effects in Blockchain Games: Content Is Still King
This article is mainly about:
- Explore two pivotal moments in console gaming history (Atari vs Nintendo; Nintendo vs Sony) and who won;
- Similar to "Blockchain Gaming Platform" to understand what it takes to be successful.
Atari and Nintendo were the two most important companies in the rise of the console gaming industry.
Atari makes strategic decisions based on the markets in which it operates. To win the platform competition, Atari opened up its system and gave control of it to game developers. It does this by licensing most of its content, such as Taito's Space Invaders and Namco's Pac-Man. This decision helped them grow the network quickly and win the platform competition, but Atari lost control of the network.
Nintendo took the opposite approach: a closed network for content development. The benefit of this approach is that Nintendo can maintain control of the network, but at the cost of slow growth. This strategy works because there are great games like Donkey Kong, Mario, and The Legend of Zelda. They use this high-quality content to lead their user base and then attract developers to their platform. In fact, by 1987, Nintendo had such a powerful platform that they imposed relatively harsh terms on game developers. Nintendo does this to maintain control over the quality of the network, and the developers agree, because Nintendo's network is valuable.
Nintendo vs. Sony. Sony almost used Atari's strategy, but why did Sony win and Atari lose? Because the competitive environment has changed.
Market: The console game industry in 1996 was more mature, with a large number of high-quality third-party developers.
Architecture: The PS1 architecture (i.e. CD-ROM) provides an order of magnitude value-add for developers, while the 7800 architecture is at a disadvantage relative to the NES
Developer-focused: Sony has made life as easy as possible for third-party developers. The PS1's direct hardware architecture, development tool suite, and C language support make it easier for developers to program 3D graphics.
content is king
History to date demonstrates two important points:
- The open web has the advantage of rapid growth, but sustainability depends on the quality of content on that network.
Most importantly, network and architectural models are a means to an end: content that delights users. In the blockchain industry, scalability and decentralization are sometimes ends in themselves.
scalability
scalability
Scalability (i.e. transaction throughput) is unlikely to be a winning factor for blockchain platforms. The NES showed us that it was possible to create high-quality content despite the technical limitations of the underlying platform.
network model
An open network alone will not be the winning formula for a blockchain-based gaming platform. The market is still immature for a large number of high-quality "blockchain-native" third-party developers, and NES tells us that developers focus on users, and users focus on content. Early winners are likely to have their own in-house development studios or exclusive deals with traditional third-party developers to channel content across the web.
Full text link:
Full text link:
https://hackernoon.com/
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Cryptocurrencies (Ethereum)'s Financial Obsession
ETH is Money has been a loud slogan in the Ethereum community lately, but slogans like "blockchain is finance" and "Ethereum is money" may actually prevent blockchains like Ethereum from reaching their full potential.
Since its inception, Ethereum has maintained a healthy ambivalent attitude towards finance, money, and the law, just like the Bitcoin white paper.
If a general-purpose blockchain operating system is to be created with a Turing-complete programming language, why limit the system to functional dapps in favor of financial-based applications?
While forks have always been a key governance lever and check and balance, Dragonfly Capital's latest article attempts to show that this has become increasingly difficult to be effective in the Ethereum space.
When people start thinking of blockchain as money and monetary "wealth", they are really just putting a price on cyberattacks.
Satoshi's genius design was in using this price tag to reduce the risk of defense, the greater genius was in convincing potential attackers that the value of a decentralized exchange network denominated in BTC or ETH is far greater than the fiat liquidation an attacker could possibly achieve income.
What is the price of an open global blockchain? If the legal price
Blockchain ~financial homology is deeply flawed. Even if you see yourself as a blockchain stakeholder purely motivated by monetary profit, you should see that blockchain's monetary premium comes from decentralization, not just "digital scarcity".
Blockchain financial frameworks (Bitcoin is "the world's most reliable and secure financial network; Ethereum is financial infrastructure; etc.") directly threaten decentralization. True decentralization is why blockchain tools have fiat currency value.
In a paradoxical situation, the blockchain financial framework has disrupted and depressed the value of cryptocurrencies. In other words, attacks and network failures already have a price on them.
The financial fetishism of cryptocurrencies may simply be that people care more about protecting their “financial possessions” than they care about securing the blockchain.
After Satoshi Nakamoto, (1) securing one's financial possessions and (2) securing the blockchain are two different realities, and may actually be incompatible.
Financial framing is not a benign or costless narrative tool.
Calling Bitcoin/Ethereum a "financial network" and Bitcoin/Ethereum "money" (or another type of financial instrument) could have a short-term upside effect.
Full text link:
Full text link:
https://medium.com/
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Crypto Community Divided Over China's Blockchain Policies
The author, Priyeshu Garg, is an analyst at CryptoSlate, a foreign currency circle media. There is also a review of his recent market volatility caused by China's attention to blockchain and its impact on the community.
Many believe that China's encouragement of blockchain research and innovation is responsible for Bitcoin's massive rally last week, in which the price of Bitcoin rose by more than $1,000.
Few crypto developments have been as deeply divisive as China’s blockchain policy support. Half of the cryptocurrency community praised China for its positive attitude towards the emerging technology, but the other argued that it meant so much government oversight of blockchain that it was dangerous for the future of cryptocurrencies.
Full text link:
https://cryptoslate.com/
