Synthetix’s founder: crypto and DeFi still in the earliest inning of its next growth cycle
As Bitcoin and especially Ethereum’s DeFi ecosystem has drawn down from its recent highs, analysts have been left wondering what phase of the market cycle are cryptocurrencies in. Is this the early innings of a bull market or the start of another bear trend?
According to Kain Warwick, the founder of Synthetix and a long-time crypto market participant (since 2012), ongoing price action and fundamental trends suggest we’re still in 2016.
That’s to say, cryptocurrencies have a lot further to grow in the coming years.
Warwick explained that having lived through two previous crypto cycles, he thinks that the industry’s current situation is analogous to 2016, which was the “calm before the 2017 storm,” so to say:
“I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…”
I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…
The main reason why he thinks so is that after the recent strong decline in Bitcoin, then in top altcoins including his own SNX, there are few looking to buy the dip.
He expanded on his thoughts on the current situation in the crypto market in a post published to the Synthetix site.
Warwick commented that right now, DeFi is a “total clusterf**k” in a good-bad kind of way:
“So many things are happening simultaneously that it is impossible to track the potential consequences of all of them let alone the combined consequences of stitching them all together.
Thus you get the challenges for the DAI peg, and weird volume spikes across the DEX landscape due to shifting protocol incentives, and high yields on specific DeFi tokens on lending protocols.”
He also mentioned how builders in the crypto ecosystem now must acknowledge that the decisions they make affect the rest of the DeFi ecosystem, meaning there needs to be a concerted effort amongst all teams to work together to better products.
While crypto’s recent price action has been slow to say the very least, going off of Warwick’s comments and those of other top commentators, a parabolic growth trend is to follow.
Chris Burniske, a partner at Placeholder Capital, recently commented that he thinks that Ethereum will reach a market capitalization of $1 trillion this market cycle:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
Other commentators have made similar comments about Bitcoin, remarking that the likelihood the coin undergoes another exponential growth trend in this market cycle is likely.
Author: Published 3 hours ago
Tokenize the World: A Framework for Digital Assets
It is clear today, and certainly more so than even just six months ago, that organizations need to grasp the generational urgency of digitization. The playing field for commercial success has shifted and entities need to exploit new digital models to create value; commercial entities must adopt digital business strategies to survive and to have the opportunity to compete.
Ecommerce is arguably the most disruptive digital transformation that we have seen in history. While the digitization of retail was previously on the executive agenda, implementation has been uneven across sectors, entities, and geographies; and it is very apparent now that those who were leading are now exponentially ahead, dominating the market and defining the landscape.
The Digital Asset sector is at a similar juncture; entities that capture the opportunity today will define the rules for tomorrow.
The potential to effectively tokenize real-world assets on a digital system and to efficiently transact is creating new asset classes and entirely new markets for hitherto illiquid assets; and it is reducing risk and cost in clearing, settlement, custody, collateralization and more. Tokens can represent any asset or agreement across multiple parties, and in any sector or industry.
With the broad diversity in the nature and type of tokens, a repeatable design approach, and notably one that leads to predictable results, needs to be anchored on a “meta-model”, an ontology that defines an underlying standards-based language for digital assets. For context, the Periodic Table serves as the meta-model for Chemistry.
The Token Taxonomy Framework is one such meta-model for digital assets. It and serves to define a common set of concepts and terms that may be used by commercial and regulatory participants to enable compliance and governance; and to generate precise specifications for developers to follow, for tools to generate from, and for standards organizations to validate.
A standards-based taxonomy for tokens is crucial for world markets and for global policymakers because a token class or type determines its attributes and behaviors i.e. securities rules, issuance facilities etc. With the growth in the number and types of digital assets, there is an increase in the demand from regulators and from investors to consistently classify and categorize token types.
In addition to enabling the core meta-model, the Token Taxonomy Framework (TTF) also facilitates a platform to enable the creation, classification, and the reuse of token definitions.
A token definition is a template to create and instantiate a specific tokenized asset. In the TTF for instance, three atomic elements together comprise a token template: the Base Type (e.g. fungible), Behaviors i.e. capabilities that are present (e.g. transferable), and Properties i.e. values that may be queried and/or updated (e.g. SKU).
The Taxonomy classified token types using five capabilities that they possess:
Whilst demands from regulators, policymakers and the global markets are a powerful motive for categorization, classification metadata is powerful for visualization; tools built using this metadata accelerate the learning about and the re-use of existing token templates. Re-use ensures the long-term sustainability of the underlying repository and the asset community at large.
In practical terms, the TTF is a composition framework that breaks token definitions down into basic reusable components – base token types, behaviors, and properties. These reusable components are then categorized by type and support grouping and classification. Composing these reusable entities together generates newer token definitions, and so forth.
The taxonomy serves to establish the definition and the categories and is complemented by proven industry practices, that lead to predictable business results. Looking across sectors, industries and geographies, three activities are key:
The meta-model, taxonomy, and the approach are all implementation-neutral, and platform(chain)-agnostic, and the resulting token definitions may then be input to one or more code-generation tools to instantiate the token definition onto a blockchain or even to a centralized database, as appropriate.
In summary, a structured designed approach for digital asset definition needs to be based on an underlying meta-model (i.e. a language)for digital assets; and this meta-model needs to enable an ontology (i.e. a taxonomy) for the creation, classification and re-use of asset definitions and templates. The rest is implementation detail, as they say.
John deVadoss is a founding Director of the InterWork Alliance and co-chairs the Token Taxonomy Framework Working Group. He leads NGD Enterprise, based in Seattle, Washington, building developer tools for Neo. Previously, he built and successfully exited two machine learning start-ups. Earlier in his career at Microsoft, John incubated and built Microsoft Digital from zero to $0.5B in revenue; he led architecture, product, and developer experience for the .NET platform v1 and v2; and he was instrumental in creating Microsoft’s Enterprise Strategy.
The post Tokenize the World: A Framework for Digital Assets appeared first on CryptoSlate.
Author: By Luke Bailey
BCH Hash Watch: Most Miners Point to BCHN, Coinex Exchange Announces Futures
Proponents of Bitcoin Cash have recently noted that the last 612 blocks or more than 61% of the last 1,000 blocks have been mined using BCHN, according to statistics from Coin Dance. Furthermore, the data also shows that 82% of the Bitcoin Cash hashpower is pointing to BCHN, as prominent miners Btc.com and Antpool have started to point out.
BCH fans are waiting patiently as there are 53 days left until the November 15 Bitcoin Cash update. News.Bitcoin.com reported on September 1 on how there is a high probability that the BCH blockchain will fork into two networks.
At that time, our news table detailed how prominent members of the BCH community said goodbye to the Bitcoin ABC developers, and various mining operations began pointing to the BCHN node.
Today, Coin Dance statistics show that 612 of the last 1,000 blocks have been mined using the BCHN full node software. Towards the end of September, two new groups joined the BCHN flagging fray, as Btc.com and Antpool began flagging BCHN on their coin base parameters.
This means that currently 82% of all BCH hashrate has been signaling BCHN. Groups included in this group include Binance, Antpool, Btc.com, Btc.top, Bitcoin.com, Huobi, Okex, MY7A, easy2mine, and Bejn.
Over the past 12 hours, around 2.6 exahash per second (EH / s) of hashrate has been directed to the Bitcoin Cash (BCH) chain. Additionally, trading platform Coinex revealed contingency plans for the next update, as the announcement mentions the possibility of a network split.
Coinex also announced the introduction of futures scheduled to drop on September 24. Supporters of Bitcoin Cash will also be waiting for other exchanges to reveal contingency plans in the future.
The futures listed on cryptocurrency trading platform Coinflex show that ABC futures versus BCH are still 10 to 1 in favor of BCH. While the BCHN blocks crossed the 60% range, BCH supporters on the Reddit r / btc forum discussed the changes. Many expect the number of blocks mined from BCHN to increase over the next few weeks.
One Redditor noted that since Antpool recently joined with 20% of the hashrate, the “average of [seven] days should reach ~ 75% in [five or six] days.”
Author: Souvik Sarkarhttps://news.triunits.comCrypto Expert And Blogger .
Apex Crypto News – DeFi projects rush towards Layer 2 as Ethereum clogs up
Decentralized finance (DeFi) protocols are racing to implement Layer 2 scaling solutions as Ethereum gas fees skyrocket and the network struggles under the demand.
Popular DeFi platforms including Uniswap, Aave, and Synthetix are gettin closer to rolling out the scaling solutions.
Synthetix, an on-chain synthetic assets protocol that tracks the value of real-world assets, is upgrading September 24 to a primitive version of L2 scaling.
According to a blog post by founder Kain Warwick the ‘Fomalhaut’ upgrade is the first phase of L2 migration to Optimistic Ethereum. It’s an incentivized testnet aimed at alleviating gas costs for small SNX stakers who have faced fees in the hundreds of dollars to collect weekly rewards.
A second upgrade called ‘Deneb’ is due on September 29 which also includes measures to reduce gas fees. Warwick added said:
“Both of these releases are direct responses to increased gas costs due to Ethereum congestion. Some of the changes are stop-gaps while we transition to Optimistic Ethereum but included in these two releases is the first step towards L2 Synthetix.”
The hybrid approach to L2 will likely take Synthetix through to the end of the year, he concluded. Optimstic rollups is a Layer 2 solution that scales Ethereum smart contracts and dApps up to 2000 transactions per second.
The world’s leading DeFi DEX, Uniswap is also working on a major upgrade with Uniswap V3. When asked earlier this year, Uniswap founder, Hayden Adams, said that V3 would ‘fix everything’ implying that L2 may be a big part of the upgrade.
What improvements will v3 have?
— 千㠪㇄✪ (@rafdo) July 25, 2020
There is already a basic demo of the L2 version of the token swap protocol running at unipig.exchange. Unipig was launched in October 2019 in collaboration with Optimistic rollups.
London based lending protocol Aave, which is the second most popular DeFi protocol in terms of total value locked, is preparing the launch of version two of the platform which will streamline operations in order to reduce transaction fees.
In a blog post last month, Aave stated that its ‘aTokens’, which are minted to represent crypto collateral assets on the platform, will integrate EIP 2612 for gasless approvals. The Ethereum Improvement Proposal (EIP) enables transactions involving ERC-20 operations to be paid using the tokens themselves rather than gas accruing ETH.
“The short term objective is to push on the aToken adoption, and Aave is actively researching on bringing them to L2.”
The post did not give further details on which L2 solutions it would be adopting or a time frame for the launch of Aave v2.