What Could Crypto Look Like in 2030?
Charles Hoskinson on USD | ETH Consensus Issues | Fantom Catalysts | Enclave Markets Arkham Intelligence
GM Intels, this is your Daily Bolt briefing.
Today's research includes the founder of Cardano himself; Charles Hoskinson, and his thoughts on the deprecation of the U.S. Dollar.
Additionally, we'll be providing our research on Enclave Markets, a fully encrypted exchange, as well as notes on how the Fantom Foundation operates and what FTM users can soon look forward to.
Over and out.
Key Discussions Happening Today
1/ Charles Hoskinson - Depreciation of U.S. Dollar
Preview: Charles Hoskinson talks about U.S. Dollar slowly losing its value. He also discussed the future of Cryptocurrency as the new paradigm for money. here to listen to the full episode.
Length: 17 mins | OUR NOTE: 2 mins
In 2014, people didn't see Crypto as a potential long-term investment.
The banking system in general is falling apart predictably; because it's always been a Ponzi Scheme.
In the next 10 years, all Defi protocols will at least go through five major upgrades, and be able to scale and handle transactions with Billions of people.
In the next 3-5 years, the entire notion of identity will be able to be a universal identifier that returns people's data and privacy; a concept known as self-sovereign identity.
2/ Ethereum Foundation - Finding Consensus Issues on Layer 1
Preview: In this show, Marius van der Wijden, a developer at Ethereum talked about Finding Consensus Issues on Layer 1. Click here to listen to the full episode.
Length: 25 mins | OUR NOTE: 3 min
Here are some key takeaways:
The issue of DoS via malicious snap request with was that someone could craft a weird GethTrieNodes package or network package.
These kinds of issues are not that bad because you only crash one node. If we have crashes within the EVM, those are usually worse because you can crash a bunch of nodes.
The community found some interesting issues in go-Ethereum.
3/ Blockbytes - with Juan Angel of Fantom Foundation
Preview: In this episode, Clay Kilgo is joined by Juan Angel to discuss Fantom, validators, governance, gas monetization program, marketing, adoption and more. Click here to listen to the full episode.
Length: 72 mins | OUR NOTE: 3 mins
Here are some key takeaways:
Gitcoin Grants provide a way to utilize what they call quadratic funding which disproportionately incentivizes the amount of unique donations or voters relative to the total amount donated: Fantom is the first L1 network outside of Ethereum to have this pilot.
15% of all the FTM gas fees that the projects’ smart contracts generate get kicked back to them like a rebate or affiliate rewards program.
The Fantom Foundation is much more conservative and think scale slowly, build things well and then launch them.
4/ The Scoop - Fully Encrypted Exchange on Avalanche
Preview: In this episode of The Scoop, Frank Chaparro is joined by David Wells, CEO of Enclave Markets to discuss why OTC traders benefit from maintaining confidentiality via Enclave's Fully Encrypted Exchange ('FEX'), and how Enclave aims to combine the best elements of centralized and decentralized exchanges in its products. Click here to listen to the full episode.
Length: 107 mins | OUR NOTE: 2 min
Here are some key takeaways:
FEX removes the single point of failure from crypto marketplaces by combining centralized and decentralized models.
Enclave Cross is a crossing network that prevents information leakage and protects against price slippage.
There is excitement about tokenized assets, fractional ownership, and potential for listing on Enclave.
Security tokens may re-emerge as "Real World Assets" (RWAs) in the market.
5/ Polygon Alpha Podcast – Arkham Intelligence CEO on Crypto Intel
Preview: Justin Havins and Miguel Morel CEO of Arkham Intelligence, talk about Arkham as an intelligence platform. They also talk about conflicting ideologies and trends within the Crypto Space. Click here to listen to the full episode.
Length: 45 mins | OUR NOTE: 5 min
Here are some key takeaways:
The first piece in the company is collecting all important information through the usage of Publicly available data.
The 2nd piece is that they attempt to find attributions/labels such as the alphanumeric address and eventually attach the name of a particular company.
The internet has a similar trajectory to Crypto, starting small and growing within a technologically advanced group of people.
On the Revelo Intel platform, we’ve summarized these 5 episodes and in total, would have saved you: 4 hours and 10 minutes!
To get access, you just have to sign up for a FREE plan.
Note of the Day
Animoca Brands - Yat Siu on Web3's Impact on Digital Property Rights
Mehdi Farooq, Mohamed Ahmed, and Yat Siu the Executive Chairman of Animoca Brands talk about the Web3 Vision and how is culture a powerful "Network Effect" in the Crypto world. They also talk about the importance of Digital Ownership and Gaming NFTs.
Read our notes below to learn more.
Web3 Vision
People view the entire Web3 space as the construction of new economies and countries.
The concept of tokenization is the ability to combine various cultures into tangible economic units.
When people think about the worth of the internet; it created a way for each individual to come together from all over the world and create new identities.
Micro-identities such as Irish American or Chinese American mushroomed further through the help of the internet.
In the culture of gaming, there are different tribes that are being formed within the gaming community.
People on World Wide Web nowadays are experiencing digital nationalism and patriotism.
What binds the entire space in the economic construction isn't money but culture, such as love for sports, music, and even movies that people share across the world.
The business of culture was the second-largest revenue-generated service in the U.S.
Popular business brands such as HBO, Samsung, Sony, and even Netflix wouldn't exist if it wasn't for the influence of culture from different countries.
The Automotive industry is also influenced by culture; in terms of people choosing a car manufacturing brand.
NFTs are a store of culture; wherein Bitcoin is a store of value.
An economy that has no culture is only around money: which means everything is tradable; it means everything has no long-lasting effect beyond its immediate value.
Is Culture a "Network Effect"?
Culture is considered the most powerful network effect in the world.
The American culture is a prime example of why culture is the world's most powerful network effect.
The American concept of liberalism/free market is regularly promoted in popular American literature and media, which is regarded as the country's biggest "soft power".
In several countries, entertainment has become something that must go through various cultural ministries; some content must be regulated, such as pornographic, aggressive, or violent content.
What creates revolution or change in the history of humanity is ideas.
Certain harmful notions are spreading through a new type of Tribalism, which also influences how individuals perceive culture.
What makes NFTs and Blockchain so powerful is that you can enumerate their worth in a quasi-mathematical manner that can be translated into a new value.
In terms of the footwear industry, people prefer the diversity of choice between comfort and price of a shoe, creating a Network effect.
In the earliest days of the NFT world, it was dominated by traders; whereas trading was the predominant function of Crypto.
Nowadays, when people consider the number of NFTs that are commonly sold, it is less than ten in the minority in terms of the percentage that was traded.
What will Crypto look like in 2030?
One of the Big Visions for the Crypto world is to deliver traditional property rights and people should own equity in what they build.
Given that everyone is talking about AI, the chat GPT would not exist without the data generated by end users.
People have a lot of misconceptions regarding data because every piece of data that people generate has a derivative effect on it in the future.
Universal Basic Income is a difficult concept for most people to swallow, for the reason that it will adversely affect the economy leading to a labor and skills deficit.
Universal Basic Equity is the concept of creating valuable data by generating it from an incentive mechanism perspective.
The reason why equity is important is that it's a long-term approach; the idea is for people to contribute more to receive more equity.
Blockchain and tokenization give an intriguing technique to develop stakeholder relationships that are regarded as a shared network effect; which is a basis for what people hope to happen in 2030.
By 2030, the Crypto industry is hoping to cross a Billion people, which is an inevitable path because it's a better outcome for the community.
The Tokenization and Web3 are creating sustainable 'Financial Incentive' relationships between groups which Animoca Brands is working with.
If people don't have Financial Sustainable Thinking, then they can actually have the luxury to think about Environmental, Social, and Governance.
Importance of Digital Ownership and Gaming NFTs
Animoca Brands have completed its acquisition with a company called Fuel Powered, and it shared its office with another company called Axiom Zen; these companies are developing Crypto Kitties.
The co-founder of Fuel Powered ended up becoming the co-founders of Dapper Labs.
As part of the arrangement, Animoca ended up being publishers for 'Crypto Kitties' and shareholders in Dapper Labs.
Animoca Brands were not the classic Crypto OGs but considered themselves financially sophisticated because the emphasis at that time was very financial for the Crypto world.
CryptoKitties and NFTs became the motivation for Animoca Brands to gain more connections in the Crypto world.
Video game assets became a part of Animoca Brand's identity.
January 2018 was the year Animoca Brands started investing with Dapper Labs.
Animoca Brands also invested in companies like OpenSea, Sandbox, and XInfinity.
As of now Animoca Brands holds/invested in more than 380 companies and was called the Animoca Family.
The reason why Animoca Brands focused on gaming is that they felt that gamers had a relationship with their virtual goods as one of ownership.
Game balancing is majorly observed in the game industry, by nerfing some features to generate more revenue.
If Animoca Brands will be able to decentralize its ownership of the Fortnite assets, they're probably going to see thousands of new businesses emerge.
If people will look at the lens of history, gaming is the only category at a scale that is digitally native; in which most assets are connected to the real world.
Animoca Brands believe that in the future, ownership of an NFT contract would give people ownership in something physical when legal issues are resolved.
Digital items are the opposite in games because it starts through a digital construct and influences the physical world as it moves.
There wouldn't be Playstation or Xbox if it wasn't for the origin games being entirely virtual stuff.
Main Blockers to Web3 Adoption
In terms of genuine activation of the communities, WhatsApp is a great example, because of its network effect.
Back in the lens of a nation, there are places in the world married to the network effects that are embedded within that place.
The cost of switching/Web3 adoption for the majority of users will be very high because users and investors shall give up all the networks they built.
Animoca brands also has difficulties leaving Facebook/Instagram because of the embedded network effects that exist there.
One thing that makes it easier for creators and users in the digital world is that; it doesn't have borders and the switching costs are much lower.
Even though WhatsApp is very influential, it is being challenged by Telegram and other sorts of new messaging apps.
Views on NFT Royalties
Animoca created their versions of an allow-less type of approach with Mocha verse so that Blur and Open Sea would enforce royalties.
At the end of the day, it's still up to Blur, OpenSea, and Magic Eden to enforce royalties or not, because it's not a specific smart contracting.
The reason why Royalties are so important is that: it is the engine that keeps the whole independent creative cultural movement going.
If people want to have a decentralized network, they need to ensure that the monetary benefits are also distributed appropriately.
Royalties cannot be enforced in Web2, therefore they have to be given to Spotify to be given to a bigger platform such as Apple or Android to enforce.
ASCAP was effectively a royalty enforcement mechanism. Unfortunately, they started to accumulate more power instead of protecting the creators.
Unfair use of power from such platforms can be prevented by ensuring that the value is appropriately distributed.
Value and Power are very much correlated especially in a Capitalist Framework.
With the ability to participate at Ground Zero and to benefit and add value to the network, people can have a 'low-cost free mint'.
If people continue to contribute to the network such as Ground zero, the value of that ownership could potentially increase because they are now a part contributor to the network.
There wouldn't have Bored Apes or Cool cats if it wasn't for the royalties that are generated from it.
NFT License
The licensing agreement of NFTs could live on the Metadata.
The key point is that you have to give a notification to the platform which is under the Digital Millennium Copyright Act to enforce the license.
The reason for the emergence of 'Royalty wars' was that: it was possible for players to take advantage; because there was no way to keep the market level.
People will return to paying royalties because there are a small number of platforms that wanted to gain market share at the expense of other people's royalties.
📚 Research Using Revelo | 🐦Follow Twitter | 🎥 Subscribe to YouTube
Views on Soulbound Tokens
Soulbound tokens are one example of a fascinating approach in terms of innovation in the Crypto space.
Additional considerations include multiple cell-bound tokens and the fact that people exist as multiple identities.
People are already living with multiple identities, such as how people view themselves in the digital world and the physical world.
If people will be tied to a single identity, there would be a struggle for them because they differ in many things.
Privacy is very important, in terms of chain transactions or how people invest.
There should be a system that can be tied to people's ultimate identity, in which Soulbound tokens are a really good step in that direction.
Views on DAOs & Governance
The very common criticism that a lot of people have said about DAOs or democratic approaches is that; it is very difficult to get consensus and direction.
If people create a product that has been generated from an initial community consensus, then the community has bought into it and people don't have to sell it.
People are also taking accountability because they are voting, which is considered a stronger foundation for the community because they become stakeholders.
If each individual owns a digital property, the property's health is determined not by the fact that individuals possess anything, but by their deep affection and accountability.
Democratic turnout tends to be often higher in young democracies.
DAO plays an important role in how people view democracy, because now through digital ownership of coins in the Crypto ecosystem, people are now able to vote and participate.
Nowadays, democracy is being exercised in the Crypto world through certain platforms such as Twitter space.
Democratic institutions will learn from DAOs way of conveying democracy through small communities within the scope of their organization.
Q&A
Q: What are the top 5 NFT collections that you own/are excited about?
A: Bored Apes, Mocaverse, Cool Cats, The Sandbox, and Toska are the top 5 NFTs that Yat Siu is excited about.
Q: Last Google search?
A: Yat Siu is basically Googling some economic statistics of different countries, as he is trying to compare DAOs to nations.
Q: Biggest Pet Peeve in Crypto?
A: Yat Siu's biggest Pet Peeve is the phrase 'When Lambo'? Because it refers to the distaste of people which is also called Brash Capitalism.
Q: What are you currently most curious about in Web3?
Blockchain's political systems, because it is embedded inside a political worldview, such as free markets capitalism and a liberal worldview.
Web3 creates direct and better incentives that are capitalist in nature, which is described as stakeholder capitalism.
Check out these important links
To get access to Notes like this, join for free today.
Thanks for reading The Daily Bolt by Revelo Intel! Subscribe for free to receive new posts and support my work.