New crypto frameworks, crypto security guides & the state of CBDCs
This week’s blockchain insights include a report on the state of CBDCs, security measures for smart contracts and blockchain development, and trends towards Web 3 interoperability & composability.
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The IMF (“International Monetary Fund”) shared an introductory video to blockchain.
What are cryptocurrencies? https://t.co/ggONlLkA2r pic.twitter.com/yYpj3Jf37E
— IMF (@IMFNews) August 23, 2020
Meltem Demirors shared an interesting report on how Bitcoin fits into an investment portfolio. It picks up important functions of Bitcoin such as “Bitcoin as a store of value” and shows shifting sentiment with investors as well as interesting stats such as “8.7% of Bitcoin were taken off exchanges this year”.
1/ how does #Bitcoin fit into an investment portfolio? our latest @CoinSharesCo research “A Little Bitcoin Goes a Long Way” covers this topic
we believe bitcoin has a place in portfolios as an alternative, diversifying asset. Let’s dive in! 🤿👇https://t.co/GIfvVv8dfP
— Meltem Demirors (@Melt_Dem) August 19, 2020
Brendan Blumer explained that Block One (behind EOS blockchain) is looking into working with different blockchains. This may be interesting for blockchain interoperability but it’s also a good sign for Bitcoin & Ethereum since Blumer & Block One belief in potentially better gains from getting exposure to these assets as well.
B1 has begun exploring a multi-chain mining strategy to build proficiencies that we see as important to long term ecosystem interoperability, and to strengthen our corporate treasury through diversification. #EOS #Bitcoin #Etherem
— Brendan Blumer (@BrendanBlumer) August 21, 2020
A great framework for crypto capital assets and value flows for protocol-generated cashflows was presented by Jon Itzler. His framework includes 3 tiers: Protocol volume, protocol revenue, and protocol divvy which describes how values are distributed among market participants.
On protocol tokens and on-chain cash flows
“This paper aims to lay out a framework for protocol-generated value flows, the sets of stakeholders to which value is distributed, and how a native token fits in”https://t.co/POtkqLjS7w
— Jon Itzler (@jonitzler) August 19, 2020
An interesting thread was published on decentralization and Web 3. The decentralized Web attracts new talents, facilitates funding, composability of solutions and powerful network effects.
Decentralization is about to reset a decades long entrepreneurial calculus.
1/ So far, entrepreneurs have needed Silicon Valley to source talent, knowhow and investors…
— Dominic Williams (@dominic_w) August 20, 2020
Here’s a simple first guide on safer liquidity farming. Even non-technical people can use the Diff Checker to compare new smart contracts with existing, audited contracts.
1/x Guide to partially protecting yourself when staking in new or untested farming contracts. Full version with pictures here (https://t.co/APZnqEZavG)
— Spreek (@spreekaway) August 18, 2020
Best practices in blockchain and smart contract development have evolved in the past years. The most recent go-to-market strategies & “test in production” experiments in Defi are complete opposites of the best practice workflow of specification definition, testing, limited exposure, audits.
– Write a specification
– Test, test, test your code!
– Write deployment scripts so good, @0xc4ad can release your code without your permission
– consider limiting your AUM at first
– consider an audit from a reputable auditor
– follow @DefiSafety best practices
— I'm just a doggie boi (@fubuloubu) August 17, 2020
Consensys also shared their smart contract best practices.
A vigilant Ethereum developer always keeps five principles top of mind:
1️⃣ Prepare for failure
2️⃣ Rollout carefully
3️⃣ Keep contracts simple
4️⃣ Stay up-to-date
5️⃣ Be aware of the EVM’s idiosyncrasies
— ConsenSys (@Consensys) August 18, 2020
Since blockchain applications and smart contracts control billions of dollars, risk metrics are evolving and parties try to quantify that risk. DefiSafety is offering a risk score for Defi projects. Check it out here.
State of Central Bank Digital Currencies
The Block released an extensive report on the current state of CBDCs. Several Central Banks have already completed experiments, moved to advanced stage pilots & China is taking the lead. More jurisdictions provide a clear legislative path to project implementations and create sandboxes for pilot testing. Most CBDC proposals maintain a two-tier monetary system architecture with licensed intermediaries. The inclusion of private market feedback is important to stay on top of developments.
The Block Research presents: A Global Look at Central Bank Digital Currencies.
This 180 page + white paper takes a deep dive into the history of CBDCs and current developments by central banks around the world.
Commissioned by @BlocksetHQ and @KPMGhttps://t.co/pspJlWqdXD
— The Block (@TheBlock__) August 19, 2020
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