It’s no secret that the economics of 21st century journalism is in trouble.
Hari Sreenivasan from PBS in NY explores an attempt to use blockchain for the purpose of solving two major issues with modern journalism:
The growing trust gap between consumers and news organizations
The New York-based startup Civil launched last year with the goal of using blockchain — the same technology that powers the cryptocurrency Bitcoin — to help to build a network of independent news organizations with a sustainable business model. Civil hopes to create a new economy for journalism, including its very own cryptocurrency, the “CVL” token.
Trybe launched an EOS airdrop this week that didn’t go well, including the necessity to unilaterally take back crypto that was inadvertently overpaid. Learning experiences resulted. One suggestion was to build in a grace period to allow reversion of errors. That may not always be practical, but under certain circumstance the concept could be useful.
John Biggs makes the case that “Crypto is falling because the people in it for the short term are leaving. Long term players – the Amazons of the space – have yet to be identified.”
Having lived through (and been adversely effected by) the dot.com crash at the turn of the century, I see nothing more than a natural evolution of blockchain and crypto finding its feet while falling headlong into the chaos of a new financial and business framework.
A real market shakeout could establish the environment for sensible innovation to solve serious issues from fundamental direction of just how decentralized world commerce should be in coordination with the technical ability to quickly process the same commerce.
The technical stuff will be solved.
The policy and political stuff (or lack thereof) is a battle worthy of thoughtful consideration.
The opposing philosophies vying to shape today’s blockchain battles have the potential to define things well into the future. By the time much of the world has a chance to consider if blockchain and cryptos should be subject to more or less government regulation, the ramparts may have already been established.
Tokens that are readily available to trade on an exchange are more liquid than equity. Hence, tokens provided to early employees as an incentive for early support in a new company’s evolution are more beneficial to the employees, since they can convert them to cash right away.
Of course equity requires that employees devote themselves to the long-term success of the company to benefit from a liquidity event some day in the future. This would seem to better support the future of the business and hence the employees.
We’ll see how the new blockchain economy plays out with blockchain startups as time progresses.
Brian Armstrong is CEO of Coinbase, which has recently grown to over 500 employees (founded in 2012). Coinbase is working to establish an open financial system for the world that will create innovation, efficiency and economic freedom.
They aim to be the trusted, legal compliant place for people to trade crypto.
Coinbase is known for being the most popular exchange for converting fiat currency into crypto — most of the largest traded exchanges are crypto-to-crypto — but he foresees a future in which it plays host to a growing number of cryptocurrencies as it becomes standard for companies to create their own token, which runs alongside equity as an alternative investment system.
Armstrong states the investment phase is driving the crypto market but the utility of blockchain is where the long-term value exists.
Armstrong articulated that:
Web 1.0 was about publishing information, web 2.0 was about interaction and web 3.0 is going to be about value transfer on the internet because now the web has this native currency and so applications can be built that instantly tap into this global economy on the internet.
Tether is a unique (and controversial) cryptocurrency. It is unique in that it’s tied to existing fiat currencies. Currently, Tether supports US Dollars (USD), Euros (EUR), and in the future Japanese Yen (JPY). What this intends to accomplish is limit the volatility of the Tether cryptocurrency to that of the underlying fiat asset. All good so far.
The controversy is delineated in this TechCrunch article, not the least of which is the lack of transparency with their claims of fiat-backed cryptocurrency, which is in contradistinction to what its website states. The same article points out that:
The most interesting thing about Tether is that you don’t need to redeem them for dollars. As long as a cryptocurrency exchange believes that one Tether is worth one dollar, you can just use your Tether to buy bitcoin, or ether, or whatevercoin, and then transfer / convert that to dollars.
So, although it’s yet to be verified that Tether is a fraud, it’s very much being used. Certainly the utility of some type of fiat-based stablecoin is of interest to the crypto community in that it’s been one of the top ten cryptos for a while, in spite of its reputation.
Gary Vee speaks about blockchain at the ChainXchange conference in Las Vegas on August 14, 2018.
He emphasizes patience, stressing that we are still early in the game.
He suggests becoming a practitioner in the execution of blockchain within your craft to make a long-term impact.
Re cryptocurrencies, he warns that it’s likely that 90-98% of currencies won’t make it. He notes that blockchain is a foregone conclusion, but the currencies built on it are not.
99% of people’s understanding of blockchain begins and ends with Bitcoin, which further signals that we are at the beginning.
If you truly understand blockchain and its inherently decentralized nature, how would China, Russia and the United States accept and allow it to happen? Other than atomic bombs and armies, it takes away all their leverage. Parallel this with a global movement of nationalism and blockchain becomes more vulnerable than you might think.
The internet has already upended the status quo and they don’t want blockchain to execute a 2.0 version on them.
The nirvana of blockchain at scale equates to the dynamics of WW III.
Dallas Rushing Discusses EOS:
* Instant transactions
* No-cost transactions
* Real-Name account names
* VCs have invested hundreds of millions of dollars to the EOS ecosystem
* Chinese govt ranked EOS as best blockchain in world
* Block producers who support the ecosystem
* Currently processing the most transactions per second of any blockchain in the world
* Blocktivity.info shows EOS as the most active blockchain in the world