Bitcoin and Crypto Market Analysis for the Week Gone By ...

The Digital Tulip Bulb Mania

A community that questions the mania behind bitcoin prices. We are skeptical that cyrptocurrencies are a safe or enduring investment. We want to invoke reason into the discussion about bitcoin and explore rational ways to evaluate any value it may have. Generally, we view bitcoin as a speculative bubble.
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Investimentos

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Cryptocurrency News & Discussion

The official source for CryptoCurrency News, Discussion & Analysis.
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Is your wallet secure? An analysis of the major Bitcoin Wallets

submitted by giszmo to Bitcoin [link] [comments]

Paralysis by analysis when considering security and convenience relating to bitcoin

I've been lurking on reddit and various other cryptocurrency forums off and on for two years and finally decided I want to invest in bitcoin.
When I think about how to balance security and convenience I quickly become overwhelmed. I have several questions that I've been unable to resolve for myself.
For example:
bank account 1, phone #1
bank account 2, phone #2
exchange account, phone #3
localbitcoins, phone #4
How should I divide up or organize all of these things? I'm might be overthinking all of this but I can't help it.
submitted by MountainWrangler to Bitcoin [link] [comments]

To protect our users, we use globally accepted security practices: - Secure SLDC, Statistical and dynamic analysis, Vulnerability Assessment, Testing, WAF, Monitoring. #SwapZilla #ico #crypto #bitcoin #ethereum #blockchain #btc

submitted by valenta5 to Crypto_General [link] [comments]

Bitcoin Seed Security Analysis – Casa Blog – Medium

Bitcoin Seed Security Analysis – Casa Blog – Medium submitted by Spartan3123 to TREZOR [link] [comments]

Analysis: How a Bitcoin mining ban in China could impact BTC's price and security

Analysis: How a Bitcoin mining ban in China could impact BTC's price and security submitted by cryptoslate to Bitcoin [link] [comments]

psztorc reveals 'Drivechain', a Bitcoin sidechains 2-way-peg proposal, with security analysis & FAQ -- ["With sidechains: altcoins are obsolete, Bitcoin smart contracts are possible, Bitcoin Core & XT can co-exist, and all hard forks can become soft forks. Cool upgrades to Bitcoin are on the way!"]

psztorc reveals 'Drivechain', a Bitcoin sidechains 2-way-peg proposal, with security analysis & FAQ -- [ submitted by eragmus to Bitcoin [link] [comments]

Bitcoin NOT A Security + CBOE Expiry! March 2019 Price Prediction, News & Trade Analysis

Bitcoin NOT A Security + CBOE Expiry! March 2019 Price Prediction, News & Trade Analysis submitted by Rufflenator to 3bitcoins [link] [comments]

Bitcoin NOT A Security + CBOE Expiry! March 2019 Price Prediction, News & Trade Analysis

Bitcoin NOT A Security + CBOE Expiry! March 2019 Price Prediction, News & Trade Analysis submitted by ososru to Bitcoin4free [link] [comments]

Analysis: How a Bitcoin mining ban in China could impact BTC's price and security

Analysis: How a Bitcoin mining ban in China could impact BTC's price and security submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

PSA: "My bitcoin got stolen" is now a daily post here. Use paper wallets, only keep 5% of your bitcoin online. More security analysis in this post.

Almost all bitcoin thefts happen because of trojans, compromised Windows machines.
The scenario is eerily repeating: User logs on to Mt.Gox or another exchange or online wallet and does some transactions. While they are online, their compromised browser inserts an API key into the service. A few hours later, after logging off, they get an email: "Your funds withdrawal has completed!". Their bitcoin is stolen, nothing they can do, gone forever.
This will keep happening, again and again. Bitcoin trojans are now common - it makes sense, this is money and easy to steal
Here are a few things that DON'T HELP:
Here's what DOES HELP:
What you should do ANYWAY, on clean OS and offline:
Disclaimer: I am a security expert with 20 years of experience, 15 of them in banking security. I am the founder of the Safe Paper Wallet, which I sell but which also offers open source code and detailed instructions and software for FREE.
submitted by marvborg to Bitcoin [link] [comments]

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position submitted by ThrillerPodcast to thrillerpodcast [link] [comments]

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position - AMBCrypto News

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position - AMBCrypto News submitted by ulros to fbitcoin [link] [comments]

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position

Bitcoin [BTC] and Litecoin [LTC] Price Analysis: Coins’ prices swing higher as bulls secure its position submitted by leftok to atbitcoin [link] [comments]

Reshaping Societal Models and Transforming Governments with Blockchain Bitcoin Futures Crypto Fundamental Analysis New Securities Token Platform to Secure, Manage & Trade Cryptoc

Reshaping Societal Models and Transforming Governments with Blockchain Bitcoin Futures Crypto Fundamental Analysis New Securities Token Platform to Secure, Manage & Trade Cryptoc submitted by charlesgreenrtr to ProjectOblio [link] [comments]

Bitcoin Core deletes over a dozen contributors ACKs for BIP-202 and censors a security analysis of SegWitness

Bitcoin Core deletes over a dozen contributors ACKs for BIP-202 and censors a security analysis of SegWitness submitted by BitcoinCoreCensors to btc [link] [comments]

A Detailed Summary of Every Single Reason Why I am Bullish on Ethereum

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself on the DeFi Pulse website.

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA player Spencer Dinwiddie tokenized his own NBA contract.)

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (Jitsi for the zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to CryptoCurrency [link] [comments]

US OFAC issues advisory: ransom payments for ransomware may involve felony charges and personal civil liability for staff.

Relevant Excerpt:
Under the authority of the International Emergency Economic Powers Act (IEEPA) or the Trading with the Enemy Act (TWEA),9 U.S. persons are generally prohibited from engaging in transactions, directly or indirectly, with individuals or entities (“persons”) on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), other blocked persons, and those covered by comprehensive country or region embargoes (e.g., Cuba, the Crimea region of Ukraine, Iran, North Korea, and Syria). Additionally, any transaction that causes a violation under IEEPA, including transactions by a non-U.S. person which causes a U.S. person to violate any IEEPA-based sanctions, is also prohibited. U.S. persons, wherever located, are also generally prohibited from facilitating actions of non-U.S. persons, which could not be directly performed by U.S. persons due to U.S. sanctions regulations. OFAC may impose civil penalties for sanctions violations based on strict liability, meaning that a person subject to U.S. jurisdiction may be held civilly liable even if it did not know or have reason to know it was engaging in a transaction with a person that is prohibited under sanctions laws and regulations administered by OFAC.
Sauce Here: https://home.treasury.gov/system/files/126/ofac_ransomware_advisory_10012020_1.pdf
OFAC Sanctions list here: https://sanctionssearch.ofac.treas.gov/
Analysis: Both TWEA and IEEPA carries Criminal and Civil penalties, so under these acts they can fine the company, fine staff directly, or press criminal charges. We know the US Government as part of both the 5 eyes agreements and domestic bank monitoring programs under FACTA monitors all international wire transfers. Bitcoin and other cryptocurrencies generally leave a paper trail that can be traced back to who purchased the currency.
What I expect to start happening here is most CFO's are going to write off the cost of the ransom as a tax deduction which tips off the IRS that a ransom of some kind was paid. I expect the next step is the IRS is going to start asking for additional proof of payment and additional information about the cases. That puts CFO's in a bind, because I expect both the IRS, and federal courts, won't let it fly that you didn't know who you were paying money to under the TWEA. They'll sit on the data, and when eventually an APT Group gets compromised, they'll trace the payments back via said tax records. At that point, if your org paid under this, that data gets used to open up a search warrant and then they rip you a new one especially if the payment was substantial.
The bigger issue here is it opens up tremendous liability for security services firms and insurers who pay ransoms on behalf of clients or advise clients to pay ransoms.
Now is a good time to review your backup strategy and ensure you have tested backups that are isolated from your infrastructure.
For those of you with your hands tied behind your back, now is a good time to gently remind your management staff, and especially the CFO if you have their ear, that they cannot rely on the renound cryptographic competence of our eastern european bretheren, and that their worst-case risk is a determined remote attacker and adversary of the US infecting your network, destroying the data while making it look like a ransomware attack, selling you worthless encryption keys to fund their operation before flaunting the fact they took you for a fool with a press release taking credit for the attack to tip off state government you paid them in order to further disrupt the company operations via putting your talented technical staff or c-suite staff in handcuffs and injuring your PR.
To those of you in the business who are afraid of being scapegoated or in a tenuous situation, getchu some evidence tape and some tags, some vanilla envelopes and a glue stick. Print 2 copies, put one copy in a folder, seal it with evidence tape and a tag, then use your handy glue stick to adhere the other vanilla folder to its back and put the 2nd copy in so you can review the paperwork without breaking the evidence seal and shove that sucker in a fire proof safe or safety deposit box. Also, Mailstore home is free.
TL;DR: If your company is attacked by ransomware, tell the management only facts of the occurance you know, what you can and cannot do for them, and don't advise them of anything upto and including getting a security services firm involved. I wouldn't even tell them paying the ransom might work. If you're going to have a verbal conversation, make it a one-on-one.
Happy Saturday all!
submitted by JohnWickBOFH to sysadmin [link] [comments]

Analysis: Bitcoin is 100x Less Secure Than Commonly Believed (mining pools only take 1% commissions usually)

Analysis: Bitcoin is 100x Less Secure Than Commonly Believed (mining pools only take 1% commissions usually) submitted by SealsEvolutionary2 to Buttcoin [link] [comments]

A Detailed Summary of Every Single Reason Why I am Bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

TL;DR:

submitted by Tricky_Troll to ethtrader [link] [comments]

The Problems With Tarkov's Economy and Balance.

Welcome to my overly long TED Talk about Tarkov's overall economy and the balancing issues within itself.
First, before I continue with the analysis of Tarkovs economy, let me throw some definitions your way, as understanding these things is very important to understanding what i'm about to explain.
FAUCETS
Faucets are feature or design decision that puts value into an economy.
SINKS
Sinks are features or design decisions that take away value from an economy.
NETS.
Not sure if this is an actual definition, but a Net is something that blocks value from falling into a sink. It's not a faucet, but it acts like one.
LOOT ECONOMY
The loot economy is essentially the 'FIR Economy'. It encompasses every piece of loot found in raid, even loot taken off of players bodies that doesn't have the FIR tag.
THE PLAYER-DRIVEN ECONOMY
The player driven economy is essentially the Flea Market.
Now it's important to understand what makes an economy sustainable. A stable economy would have to have tons of sinks for players to put their money into, while providing faucets for players to take money from. EFT's faucets include...
-FIR LOOT from PMC RUNS
-LOOT Gets Vendored
-LOOT Gets Sold on Flea (Requires Level 15)
-LOOT Gets Crafted Into FIR Items (Requires Hideout)
-CRAFTED LOOT Gets Vendored
-CRAFTED LOOT Gets Sold on FLEA (Requires Level 15)
-CRAFTED LOOT Gets Used
-PvP LOOT from PMC RUNS
-LOOT Gets Vendored
-LOOT Gets Used
-FIR LOOT from SCAV RUNS
-LOOT Gets Vendored
-LOOT Gets Sold on Flea (Requires Level 15)
-LOOT Gets Crafted Into FIR Items (Requires Hideout)
-CRAFTED LOOT Gets Vendored
-CRAFTED LOOT Gets Sold on FLEA (Requires Level 15)
-CRAFTED LOOT Gets Used
-PvP LOOT from SCAV RUNS
-LOOT Gets Vendored
-LOOT Gets Used
-BITCOIN FARM (Requires Hideout)
-And i'm sure many more than i'm missing
An economy also needs to have a lot of sinks to keep an economy flowing and stop players from amassing massive hordes of wealth. EFT's sinks include...
-Lost Gear from PMC RUNS (Recycles back into the 'PvP LOOT from PMC and SCAV RUNS' Faucets. But for another player.)
-Flea Market Taxes
-Medical Costs (Optional)
-Food Costs (Optional and Minor Sink)
-Hideout Upgrade Costs (Temporary Sink, Eventually turns into Faucet.)
-Scav Case Losses (Gambling)
-and a probably a few more that have slipped my mind.
Maybe you can already start to see some issues, and I haven't even started yet.
EFT's economy also has Nets, EFT's nets include
-Insurance
-Armor and Weapon Repairs
-Items in Secure Container (Maybe that would be counted here?)
EFT's economy is not sustainable. In order for an economy like EFT's to continue, they would need far more sinks to create a sense of scarcity. Veterans say that money is far too easy to make, but that's not the issue, money is far too hard to lose.
Ever wonder why you see a lot of squads using meta gear? Its because they all get their insurance back whenever they die, as it only takes 1 surviving member of a 5-man team, to secure his dead squadmates gear, and chuck it in a bush. Eliminating most of a squads expenses.
Solo players on the other hand, don't have this luxury, and will use a lot of low-end to mid-tier gear, expecting to lose it, and get it back in insurance, because it's not worth picking up.
BSG needs to incorporate more sinks and adjust their nets in a way that fixes it, otherwise the game will forever rely on wipes, and there will never be proper scarcity in the economy.
I want everyone to try and remember what it was like when you first booted up the game, had no fucking idea what you were doing, and how i'm sure many of you were scared shitless about losing your last P226 or Grach, and elated about finding a rifle, probably not knowing it shot dog-shit .366 rounds.
Now, i've spoken to a lot of new players, and a lot them have this sense of overwhelming anxiety about playing the game once they realise that death has consequences. This anxiety also helps tremendously with selling the games atmosphere, but as people get more experienced and more wealthy, that anxiety goes away, and so does the games atmosphere.
Its not possible to put us all back into the shoes of a new player, as a lot of the anxiety is caused by not knowing what the hell is going on or that you have an infinite source of income to the left of your PMC. But it is possible to bring back *SOME* of that anxiety by introducing gear scarcity into the Loot Economy.

There is almost no gear scarcity in the Loot Economy for a few reasons.
1. The flea-market allows people to buy whatever they want, whenever they want.
-There's a few ways to change this, removing it IS NOT the answer.
2. Playing in a squad tremendously increases your chances of getting your gear back in insurance.
3. Trader prices for Meta gear are far too low and Meta gear is far to easily obtained from raiders, bosses, and players wearing this gear; because it's so easy to obtain.
Now these things COULD be fixed, but if you did it would make a lot of gear useless. Because there are more issues.
Ammo and armor balance is scuffed.
Let me just give a few examples.
Everyone wants 7n31. It's a hot new ammo that everyone wants to try out, yet its sold out every trader reset. To counter this, BSG adds it as a craftable in the hideout. Now, it's all over the flea market, but very expensive, at the time of writing this it's 1700 RUB around. Pricey.
Now 7n31 coupled with the rate of fire of most of the guns that shoot it, goes through level 4 and 5 like butter, and even level 6 pretty well. But this is where we start to run into issues.
By increasing the supply of 7n31 and many other AP ammos, you've essentially massively decreased the effectiveness of many Higher-End armors.
"Oh well, that's fine, now newer and rats players have a chance of getting through all these chad armors."
Except that's not what happens.
Let me use a better example.
M62 is $5 a bullet. It completely ignores level 5 and goes through level 6 like butter. It is widely available, and very cheap.
Why would you use Level 5 and 6 when going up against this ammo?
There is no reason, Level 5 and 6 only slows you down when your up against AP Ammo.
That's fine though, this rare and exotic ammo should be able to go through armor like its nothing, that's why I pay exorbitant amounts of money and grind to obtain this ammo.
Except its not rare and exotic, its extremely common, with very little work to obtain, and this goes for a lot of the bullets in the game. Most Meta ammos are reasonably affordable and put down level 5 and 6 easily, which begs the question, why would I use Level 5 and 6? Why would I spend 800k on a slick, when someone can spend $5 to ignore it.
This goes into another issue that I see a lot of people talking about, the TTK (Time To Kill) The TTK isn't going to be fixed by adding 5 more health to the thorax, it will be fixed when armor actually does something. The only thing 5 more health on the Thorax does is make it more expensive to run AP ammo against unarmored players, and make bolt actions useless compared to DMRs.
TTK also effects the New Player experience, a lot of new player will simply spam their little makarov at big bad Altyn man and wonder why it did nothing. That's because armor isn't hard to get either, its harder to get than the ammo that pens it sure, but it's still very easy to get if you know how to get it. Meanwhile that new player is wondering why everyone is going through their cool new level 4 ceramic armor, and they're bullets aren't doing anything.
Now if they fixed the the Loot Economy and made armor, ammo and other gear harder to find, it would do nothing, because the traders sell ammo extremely cheap and armor extremely expensive compared to the ammo. Which means armor is going to get burnt, found, repaired and used until that person dies and the armor gets picked up again or scrapped at fence.
Now the traders, from what I understand, are supposed to eventually have extremely limited stock and options. However, seemingly, the community hates the idea of sold out traders.
I have an aneurysm everytime I see a post complaining about super high-pen ammo being sold out, and then immediately see the supply go up the next day, like what just happened with 7n31.
Because you're making. The problem. Worse.
Now, I want to believe that BSG will continue with their plans to make an economy based on scarcity, but this community has an issue with crying about a lot of dumb shit. Which, don't get me wrong, if the vast majority agrees that something needs to change, it probably should. We play the game more than the devs, we know what is fun.
But when you guys complain about something as sophisticated as tarkov's economy, and you have no idea what you're talking about, thats bad.
I wouldn't be making this section of the post, if I thought that BSG would ignore the complaints. But they have this habit of caving in to the community's crys. Please BSG, do not do this.
TL;DR: In order to have a good scarcity based economy, BSG needs to have more sinks in the economy to take money out of the hands of wealthy players, and they need to make ammo more expensive compared to the price of armor. The TTK issue is solved by making ammo more rare than armor, community needs to stop crying about stuff they don't understand.

Thank you for coming to my TED Talk.
submitted by AftT3Rmath to EscapefromTarkov [link] [comments]

A complete list of everything our PMC has to do in Tarkov

Have you ever wondered the insane amount of suffering our PMC has to endure to complete every quest in the game and have the Hideout maxed out? Well, wonder no longer, because I've done the math.
Disclaimer: Long post ahead. I've used guides, data and analysis by other content creators, like Pestily, Europino and Questalace, as well as the all-mighty Tarkov Wiki to make this list. The resulting data should reflect the almost-perfect 100% Tarkov Speedrun starting with a Standard Account at the end of 12.7.
I don't know if this has been done before, so cut me some slack for any inconsistencies, as I did this for fun.

Killing:
The PMCs character arc will take our poor USECs and BEARs from battle-tested veterans to blood-thirsty killing machines the likes of Atila, with an indescribable amount of mental and physical trauma. This is all on the traders, who force us to commit genocide just to gain a standing with them. Here is the ranking:
This totals to a staggering 488 Scavs and 166 PMCs. 654 mothers will mourn the deaths of their sons, as you long surpass Simo Häyhä as the most effective soldier in recorded history.

Use, place, find in raid or deliver:
Apart from sustaining irreparable psychological damage as the bringer of so much death, your PMC is also expected to retrieve a back-breaking amount of loot for his Hideout and the 7 Traders of the Apocalypse. From life-saving devices to mere cigarettes, your PMC will have to.

Skills:
After all this Devil wears Prada reenactment, your PMC is faced with a Sisyphus-like destiny. You need to improve your skills until you get to Health level 9, Stress Resistance level 6, Sniper level 9, Memory level 8, Searching level 9, Charisma level 10, Vitality level 5, Endurance level 2, Attention level 3, Metabolism level 3 and Strength level 2. Some of this skills improve others, so let's start by the independent ones and asume you can completely avoid the deminishing returns mechanic.
And that's it. You want to escape Tarkov? Pay the toll!
Edit: Some pesky typos
Edit 2: Fixed the results of the Vitality skill, thanks to Erkeric for the correction
submitted by lady_barbuda to EscapefromTarkov [link] [comments]

A detailed summary of every reason why I am bullish on ETH.

The following will be a list of the many reasons why I hold and am extremely bullish on ETH.

This is an extremely long post. If you just want the hopium without the detail, read the TL;DR at the bottom.

ETH 2.0

As we all know, ETH 2.0 phase 0 is right around the corner. This will lock up ETH and stakers will earn interest on their ETH in return for securing the network. Next comes phase 1 where the ETH 2 shards are introduced, shards are essentially parallel blockchains which are each responsible for a different part of Ethereum’s workload, think of it like a multi-core processor vs a single core processor. During phase 1, these shards will only act as data availability layers and won’t actually process transactions yet. However, their data can be utilised by the L2 scaling solution, rollups, increasing Ethereum’s throughput in transactions per second up to 100,000 TPS.
After phase 1 comes phase 1.5 which will move the ETH 1.0 chain into an ETH 2 shard and Ethereum will be fully secured by proof of stake. This means that ETH issuance will drop from around 5% per year to less than 1% and with EIP-1559, ETH might become a deflationary asset, but more on that later.
Finally, with ETH 2.0 phase two, each shard will be fully functional chains. With 64 of them, we can expect the base layer of Ethereum to scale around 64x, not including the massive scaling which comes from layer 2 scaling solutions like rollups as previously mentioned.
While the scaling benefits and ETH issuance reduction which comes with ETH 2.0 will be massive, they aren’t the only benefits. We also get benefits such as increased security from PoS compared to PoW, a huge energy efficiency improvement due to the removal of PoW and also the addition of eWASM which will allow contracts to be programmed in a wide range of programming languages, opening the floodgates for millions of web devs who want to be involved in Ethereum but don’t know Ethereum’s programming language, Solidity.

EIP-1559 and ETH scarcity

As I covered in a previous post of mine, ETH doesn’t have a supply cap like Bitcoin. Instead, it has a monetary policy of “minimum viable issuance”, not only is this is a good thing for network security, but with the addition of EIP-1559, it leaves the door open to the possibility of ETH issuance going negative. In short, EIP-1559 changes the fee market to make transaction prices more efficient (helping to alleviate high gas fees!) by burning a variable base fee which changes based on network usage demand rather than using a highest bidder market where miners simply include who pays them the most. This will result in most of the ETH being paid in transaction fees being burned. As of late, the amount which would be burned if EIP-1559 was in Ethereum right now would make ETH a deflationary asset!

Layer 2 Scaling

In the mean time while we are waiting for ETH 2.0, layer 2 scaling is here. Right now, projects such as Deversifi or Loopring utilise rollups to scale to thousands of tx/s on their decentralised exchange platforms or HoneySwap which uses xDai to offer a more scalable alternative to UniSwap. Speaking of which, big DeFi players like UniSwap and Synthetix are actively looking into using optimistic rollups to scale while maintaining composability between DeFi platforms. The most bullish thing about L2 scaling is all of the variety of options. Here’s a non exhaustive list of Ethereum L2 scaling solutions: - Aztec protocol (L2 scaling + privacy!) - ZKSync - Loopring - Raiden - Arbitrum Rollups - xDai - OMGNetwork - Matic - FuelLabs - Starkware - Optimism - Celer Network - + Many more

DeFi and Composability

If you’re reading this, I am sure you are aware of the phenomena which is Decentralised Finance (DeFi or more accurately, open finance). Ethereum is the first platform to offer permissionless and immutable financial services which when interacting with each other, lead to unprecedented composability and innovation in financial applications. A whole new world of possibilities are opening up thanks to this composability as it allows anyone to take existing pieces of open source code from other DeFi projects, put them together like lego pieces (hence the term money legos) and create something the world has never seen before. None of this was possible before Ethereum because typically financial services are heavily regulated and FinTech is usually proprietary software, so you don’t have any open source lego bricks to build off and you have to build everything you need from scratch. That is if what you want to do is even legal for a centralised institution!
Oh, and if you think that DeFi was just a fad and the bubble has popped, guess again! Total value locked in DeFi is currently at an all time high. Don’t believe me? Find out for yourself at: https://defipulse.com

NFTs and tokeniation

NFTs or “Non-Fungible Tokens” - despite the name which may confuse a layman - are a basic concept. They are unique tokens with their own unique attributes. This allows you to create digital art, human readable names for your ETH address (see ENS names and unstoppable domains), breedable virtual collectible creatures like crypto kitties, ownable in game assets like Gods Unchained cards or best of all in my opinion, tokenised ownership of real world assets which can even be split into pieces (this doesn’t necessarily require an NFT. Fungible tokens can be/are used for some of the following use cases). This could be tokenised ownership of real estate (see RealT), tokenised ownership of stocks, bonds and other financial assets (which by the way makes them tradable 24/7 and divisible unlike through the traditional system) or even tokenised ownership of the future income of a celebrity or athlete (see when NBA Star Spencer Dinwiddie Tokenized His Own NBA Contract.

Institutional Adoption

Ethereum is by far the most widely adopted blockchain by enterprises. Ethereum’s Enterprise Ethereum Alliance (EEA) is the largest blockchain-enterprise partnership program and Ethereum is by far the most frequently leveraged blockchain for proof of concepts and innovation in the blockchain space by enterprises. Meanwhile, there are protocols like the Baseline protocol which is a shared framework which allows enterprises to use Ethereum as a common frame of reference and a base settlement layer without having to give up privacy when settling on the public Ethereum mainnet. This framework makes adopting Ethereum much easier for other enterprises.

Institutional Investment

One of Bitcoin’s biggest things it has going for it right now is the growing institutional investment. In case you were wondering, Ethereum has this too! Grayscale offers investment in the cryptocurrency space for financial institutions and their Ethereum fund has already locked up more than 2% of the total supply of ETH. Not only this, but as businesses transact on Ethereum and better understand it, not only will they buy up ETH to pay for their transactions, but they will also realise that much like Bitcoin, Ethereum is a scarce asset. Better yet, a scarce asset which offers yield. As a result, I expect to see companies having ETH holdings become the norm just like how Bitcoin is becoming more widespread on companies’ balance sheets.

The state of global markets

With asset prices in almost every asset class at or near all-time highs and interest rates lower than ever and even negative in some cases, there really aren’t many good opportunities in the traditional financial system right now. Enter crypto - clearly the next evolution of financial services (as I explained in the section on DeFi earlier in this post), with scarce assets built in at the protocol layer, buying BTC or ETH is a lot like buying shares in TCP/IP in 1990 (that is if the underlying protocols of the internet could be invested in which they couldn’t). Best of all, major cryptos are down from their all-time highs anywhere between 35% for BTC or 70% for ETH and much more for many altcoins. This means that they can significantly appreciate in value before entering uncharted, speculative bubble territory.
While of course we could fall dramatically at any moment in the current macro financial conditions, as a longer term play, crypto is very alluring. The existing financial system has shown that it is in dire need of replacing and the potential replacement has started rearing its head in the form of crypto and DeFi.

Improvements in user onboarding and abstracting away complexity

Ethereum has started making huge leaps forward in terms of usability for the end user. We now have ENS names and unstoppable domains which allow you to send ETH to yournamehere.ETH or TrickyTroll.crypto (I don’t actually have that domain, that’s just an example). No longer do you have to check every character of your ugly hexadecimal 0x43AB96D… ETH address to ensure you’re sending your ETH to the right person. We also have smart contract wallets like Argent wallet or the Gnosis safe. These allow for users to access their wallets and interact with DeFi self-custodially from an app on their phone without having to record a private key or recovery phrase. Instead, they offer social recovery and their UI is straight forward enough for anyone who uses a smart phone to understand. Finally, for the more experienced users, DApps like Uniswap have pretty, super easy to use graphical user interfaces and can be used by anyone who knows how to run and use a browser extension like Metamask.

The lack of an obvious #1 ETH killer

One of Ethereum’s biggest threats is for it to be overthrown by a so-called “Ethereum killer” blockchain which claims to do everything Ethereum can do and sometimes more. While there are competitors which are each formidable to a certain extent such as Polkadot, Cardano and EOS, each have their own weaknesses. For example, Polkadot and Cardano are not fully operational yet and EOS is much more centralised than Ethereum. As a result, none of these competitors have any significant network effects just yet relative to the behemoth which is Ethereum. This doesn’t mean that these projects aren’t a threat. In fact, I am sure that projects like Polkadot (which is more focused on complimenting Ethereum than killing it) will take a slice out of Ethereum’s pie. However, I am still very confident that Ethereum will remain on top due to the lack of a clear number 2 smart contract platform. Since none of these ETH killers stands out as the second place smart contract platform, it makes it much harder for one project to create a network effect which even begins to threaten Ethereum’s dominance. This leads me onto my next reason - network effects.

Network effects

This is another topic which I made a previous post on. The network effect is why Bitcoin is still the number one cryptocurrency and by such a long way. Bitcoin is not the most technologically advanced cryptocurrency. However, it has the most widespread name recognition and the most adoption in most metrics (ETH beats in in some metrics these days). The network effect is also why most people use Zoom and Facebook messengeWhatsApp despite the existence of free, private, end to end encrypted alternatives which have all the same features (https://meet.jit.si/ for zoom alternative and Signal for the private messenger app. I highly recommend both. Let’s get their network effects going!). It is the same for Bitcoin. People don’t want to have to learn about or set up a wallet for alternative options. People like what is familiar and what other people use. Nobody wants to be “that guy” who makes you download yet another app and account you have to remember the password/private key for. In the same way, Enterprises don’t want to have to create a bridge between their existing systems and a dozen different blockchains. Developers don’t want to have to create DeFi money legos from scratch on a new chain if they can just plug in to existing services like Uniswap. Likewise, users don’t want to have to download another browser extension to use DApps on another chain if they already use Ethereum. I know personally I have refrained from investing in altcoins because I would have to install another app on my hardware wallet or remember another recovery phrase.
Overthrowing Ethereum’s network effect is one hell of a big task these days. Time is running out for the ETH killers.

Ethereum is the most decentralised and provably neutral smart contract platform

Ethereum is also arguably the most decentralised and provably neutral smart contract platform (except for maybe Ethereum Classic on the neutrality part). Unlike some smart contract platforms, you can’t round up everyone at the Ethereum Foundation or any select group of people and expect to be able to stop the network. Not only this, but the Ethereum foundation doesn’t have the ability to print more ETH or push through changes as they wish like some people would lead you on to believe. The community would reject detrimental EIPs and hard fork. Ever since the DAO hack, the Ethereum community has made it clear that it will not accept EIPs which attempt to roll back the chain even to recover hacked funds (see EIP-999).
Even if governments around the world wanted to censor the Ethereum blockchain, under ETH 2.0’s proof of stake, it would be incredibly costly and would require a double digit percentage of the total ETH supply, much of which would be slashed (meaning they would lose it) as punishment for running dishonest validator nodes. This means that unlike with proof of work where a 51% attacker can keep attacking the network, under proof of stake, an attacker can only perform the attack a couple of times before they lose all of their ETH. This makes attacks much less financially viable than it is on proof of work chains. Network security is much more than what I laid out above and I am far from an expert but the improved resistance to 51% attacks which PoS provides is significant.
Finally, with the US dollar looking like it will lose its reserve currency status and the existing wire transfer system being outdated, superpowers like China won’t want to use US systems and the US won’t want to use a Chinese system. Enter Ethereum, the provably neutral settlement layer where the USA and China don’t have to trust each other or each other’s banks because they can trust Ethereum. While it may sound like a long shot, it does make sense if Ethereum hits a multi-trillion dollar market cap that it is the most secure and neutral way to transfer value between these adversaries. Not to mention if much of the world’s commerce were to be settled in the same place - on Ethereum - then it would make sense for governments to settle on the same platform.

ETH distribution is decentralised

Thanks to over 5 years of proof of work - a system where miners have to sell newly minted ETH to pay for electricity costs - newly mined ETH has found its way into the hands of everyday people who buy ETH off miners selling on exchnages. As pointed out by u/AdamSC1 in his analysis of the top 10K ETH addresses (I highly recommend reading this if you haven’t already), the distribution of ETH is actually slightly more decentralised than Bitcoin with the top 10,000 ETH wallets holding 56.70% of ETH supply compared to the top 10,000 Bitcoin wallets which hold 57.44% of the Bitcoin supply. This decentralised distribution means that the introduction of staking won’t centralise ETH in the hands of a few wallets who could then control the network. This is an advantage for ETH which many proof of stake ETH killers will never have as they never used PoW to distribute funds widely throughout the community and these ETH killers often did funding rounds giving large numbers of tokens to VC investors.

The community

Finally, while I may be biased, I think that Ethereum has the friendliest community. Anecdotally, I find that the Ethereum developer community is full of forward thinking people who want to make the world a better place and build a better future, many of whom are altruistic and don’t always act in their best interests. Compare this to the much more conservative, “at least we’re safe while the world burns” attitude which many Bitcoiners have. I don’t want to generalise too much here as the Bitcoin community is great too and there are some wonderful people there. But the difference is clear if you compare the daily discussion of Bitcoin to the incredibly helpful and welcoming daily discussion of EthFinance who will happily answer your noob questions without calling you an idiot and telling you to do you own research (there are plenty more examples in any of the daily threads). Or the very helpful folks over at EthStaker who will go out of their way to help you set up an ETH 2.0 staking node on the testnets (Shoutout to u/superphiz who does a lot of work over in that sub!). Don’t believe me? Head over to those subs and see for yourself.
Please don’t hate on me if you disagree about which project has the best community, it is just my very biased personal opinion and I respect your opinion if you disagree! :)

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