Growth of crypto ecosystems
In Weekly Blockchain Insights, we share the most interesting Blockchain Tweets, discussions about crypto from all blockchain ecosystems and various research and use case insights from the past week. Make sure to sign up for the newsletter below and get all blockchain insights to your inbox.
This week’s blockchain insights focus again largely on DeFi but also include great resources that explain how layer 1 blockchain protocols, DeFi, and governance evolve and relate to each other.
If you come across a great Tweet in the future, please tag us @BCComparison. And make sure to join our new Telegram group where we collect insights from all ecosystems: @BCinsights.
Blockchain Research & Blockchain Insights
Coingecko released its Q2 report on the crypto market. BTC is up 78% since March. Stablecoins are very much in demand but trading volume decreased. They are most likely used as a hedge against the economic crisis or locked-up in DeFi to generate returns. The overall market cap of crypto grew significantly in Q2. Since spot trading declined, there could be a shift towards hodling, derivatives and DeFi trading.
1/ 🔥It’s out!🔥 We have just published our Q2 2020 Quarterly Cryptocurrency Report!
Grab it here: https://t.co/Q0yKnHHm4z
Sneak peek below 👇 pic.twitter.com/yxu1wqzq39
— CoinGecko (@coingecko) July 3, 2020
The authors of the following research paper have evaluated existing blockchain design and Dapp development approaches and propose a three-stage process to address the usability and complexity of blockchain technology:Requirement modelling of DApps (AOM), Architecture modelling (goal model diagram), Use-case modelling (sequence diagrams).
📜Evaluation of Approaches for Designing &
Developing Decentralized Applications1⃣ Traditional system design methods are not suitable for developing #blockchain systems
2⃣Proposition of a new model-driven #DApp design method👉Full article: https://t.co/mrVMsThX3Y
— Blockchain-Comparison.com (@BCComparison) July 2, 2020
Blockchain governance is complex and a lot of experimentation is happening at the moment with governance tokens and on-chain governance. Blockchain was often described as a trustless system but it is more about minimizing trust.
Blockchain as a confidence machine: The problem of trust & challenges of governance@yaoeo @MannanMorshed @WesselReijers https://t.co/okOqPiVan1! pic.twitter.com/RiOHTcgW6V
— #TokenEngineering (@tokengineering) July 5, 2020
Through a formal framework for governance and ongoing improvements of governance processes this previously rigid governance process moves towards rapid software development lifecycles. This leads to constant innovations and improvements of the product offering.
As humans we only have about 2-300 years of formal study of governance systems.
We only have a few 1000 years of experience with governance systems.
Most governments are on a generational innovation cycle.
Most corporate governance is constrained by technology to a few models.
— Jake Brukhman (@jbrukh) July 4, 2020
Cameron Winklevoss shared his perspective on the USD and Bitcoin investments. Putting this controversial tweet into perspective of the pandemic and the governments’ response of printing money – this may help some people learn about money, monetary policy and Bitcoin.
If you don't understand Bitcoin as an investment, what you are really demonstrating is that you don't understand what's happening to the U.S. dollar.
— Cameron Winklevoss (@winklevoss) June 29, 2020
We have shared an introduction to crypto and money that includes a comparison of money, Gold, Bitcoin and stablecoins. Eric Voorhees explains the superiority of Bitcoin compared to Gold in regard to “verifiability”.
I'm an advocate of gold, but one monetary attribute in which #Bitcoin handily beats gold is "verifiability." With free software any human (or machine) can verify Bitcoin authenticity. Verifying gold requires expertise and equipment, & hard to scale. https://t.co/iNYmuznuxQ
— Erik Voorhees (@ErikVoorhees) June 29, 2020
The latest developments in DeFi and the launch and improvements of layer 1 protocols and token economics led to some predictions for the future of the blockchain industry. The following thread includes theses about layer 1 protocols, layer 2 solutions and the adoption of blockchain apps.
21 predictions for next little while.
1. Lots of large protocols using token-based bootstrapping mechanisms.
2. Proliferation/innovation in decentralized governance systems.
3. Many networks bridging Ethereum.
4. Single-chain maximalism death throes start.
— Jake Brukhman (@jbrukh) July 1, 2020
Techemy Capital shared a nice insight into what fuels the DeFi ecosystem on Ethereum and how the different aspect accelerate each other. Layer 1 blockchain protocols, inherent incentives and the ecosystem are the underlying force of DeFi. Important building blocks such as stable coins, DEXs and lending protocols enabled innovation and additional protocols. New protocols, tokens and projects facilitate the composability of protocols, management of portfolios and add liquidity to accelerate the growth of the ecosystem
This is how we @TechemyCapital view the cryptoeconomic drivers and feeds into #DeFi as an Open Finance ecosystem.
1/ A thread on the #DeFiVortex that is accelerating the velocity of #Ethereum 👇 pic.twitter.com/9T6AfdgYXY
— Paul Salisbury 🇳🇿 (@paulsalis) July 3, 2020
Blockchain and especially tokens are great for growth hacking and incentivization of people and businesses. Web 3 also enables new business models but only a few crypto-unique models have been identified. Flash loans are among the most radical innovations.
Flash loans are one of the most unique things enabled by crypto. Someone can borrow and repay a loan in the same transaction to instantly take advantage of arbitrage opportunities. There's nothing close to its equivalent in the traditional system. What are other unique examples?
— Linda Xie (@ljxie) June 29, 2020
We have already listed blockchain functionality that can be used individually or in combination to enable general use cases. We will share more insights into use cases and Web 3 business models in blockchain solutions for businesses in the future.
