Weekly BC Insights (CW 24-2020)

Weekly BC Insights

Transaction fees, crypto investing & blockchain developer activity


DEX, DeFi & Bitcoin

In Weekly Blockchain Insights, we share the most interesting Blockchain Tweets, research, and crypto discussions from all blockchain ecosystems from the past week. This week’s blockchain insights focus on the overall crypto and blockchain market, cryptocurrency investing, blockchain scaling, and transaction fees. Make sure to sign up for the newsletter below and get all blockchain insights to your inbox.

You can always stay up-to-date by following us on Twitter @BCComparison and Telegram @BCinsights. On Twitter, we share interesting research and Blockchain-Twitter discussions (Tag us whenever you find a great Tweet!). In our Telegram channel, insights & important updates from various blockchain ecosystems are shared!


Blockchain Market Overview

Last week Outlier Ventures and Digital Asset Research published research about blockchain developer activity based on Github activity. These analyses can be used as a good indicator and trend analyses for the general industry but it’s not perfect since not all development activity is included.

Regan Bozman shared a great list of blockchain funds and funded projects at dovemountaindata.com. Spreadsheets and curated lists such as this make the blockchain industry much more accessible. Consequently, we added the blockchain investor list to our collection of great lists.

Another great list is shared at KYCnot.me. This list showcases exchanges that do not require KYC or AML checks for Bitcoin and Monero. This should make it easier to buy, sell, and use crypto without the need to identify yourself and preserve each individual’s privacy.


Current Blockchain Discussions

Blockchain fees or transaction fees were one of the most discussed topics last week. These transaction fees must be as little as possible for users while being large enough for people to secure the network and prevent attacks on the network. The number of transaction fees are in direct correlation to the willingness to pay for using the network – the current demand.

Most blockchains are great databases to track and trace any kind of transactions. Some crypto analytics companies utilize already very advanced methods to track, trace, and identify users. The general interpretation of fees and actions on the blockchain is not that easy. Blockchains are permissionless, accessible to anyone and one can make thousands of transactions, batch transactions, or even send very high transactions when the network doesn’t even require it.

Another milestone for the crypto industry was reached in Germany when the German Stock Exchange XETRA listed BTCE. This is another step to enable many more people to invest in Bitcoin & crypto.

One of various options to scale layer 1 blockchain protocols is to utilize layer 2 solutions. MatterLabs provided a great overview of 5 different approaches, their advantages & disadvantages.


Crypto investing

DEX tokens are outperforming tokens from centralized exchanges for a number of reasons. While volumes are much smaller than on centralized exchanges and the value capture is not yet as high as on centralized exchanges, the growth of DEXs and DEX tokens & the integration in DeFi is strong.

An interesting opinion was shared about Bitcoin’s positioning compared to traditional markets. Usually, Bitcoin is seen as highly volatile, as risky but currently other markets are also perceived as volatile and risky and Bitcoin – being antifragile – might just be the hedge for that.

While there are still only a few hundred active DeFi users, more and more protocols are evolving and enabling open finance. The total market cap of DeFi seems relatively small compared to some or any layer 1 protocols (Post by Spencer Noon click here).

Cryptocurrency investing requires financial knowledge. Make sure to study the basics first before getting into trading, learn about Dollar-Cost Averaging and risk management.


Blockchain Events

Gitcoin Grants Round 6 starts on Monday with a matching amount of 175,000 USD. This matching funding is intended for public goods and utilizes quadratic funding mechanisms.

Take a look at Gitcoin 👉 click here!

Great insights. No noise. Weekly Newsletter.

In our newsletter we introduce great blockchain solutions and share a collection of the best blockchain insights from the past week.

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