Daily Bit: August 16, 2018

 

 

 

 

Issue #158 | August 16th, 2018
 

THE DAILY BIT

 

 

 

 

 

Tweet Of The Day

1. Today I am going to make a tweet storm explaining the history and state of Ethereum’s Casper research, including the FFG vs CBC wars, the hybrid => full switch, the role of randomness, mechanism design issues, and more.

– @VitalikButerin


Or should we say Tweets* of the Day… all 75 of them. Find a chair, fetch a coffee, and plug your phone into an outlet – Vitalik’s thread is a marathon.

  

 

 

BITCOIN (BTC)  |  -0.35%  |  $6,353.95


ETHEREUM (ETH)  |  1.50%  |  $289.20


RIPPLE (XRP)  |  0.14%  |  $0.28768


BITCOIN CASH (BCH)  |  1.24%  |  $521.88


EOS (EOS)  |  0.60%  |  $4.66


STELLAR (XLM)  |  -2.43%  |  $0.21069

*As of 9:15am

Aaaaaaand it’s gone. Crypto’s total cap slid to ~$205B as traders took profit following yesterday’s [short] short squeeze.

Blockchain equities are in a similar boat after hump day:

  • Riot Blockchain (RIOT; -19.55%) was leveled following revelations that SEC inquiries could ignite a trading freeze.
  • Overstock (OSTK; -7.45%) got piped, bringing the total decline for tZero’s parent to nearly 35% since August 10th.

 

 

WORD ON THE STREET

 

 

 

 

May Deloitte Be With You
In an industry deafened by noise, few things are more soothing than cold hard facts – especially when they come from executives who built multi-billion dollar enterprises without the use of tokens.

So Deloitte, you the real MVP.  The firm’s 2018 global blockchain survey just came out, and it’s jam-packed with data and insights on:

  • 1,053 blockchain executives
  • Across 7 countries
  • From 10 different industries

(1) Expected investment next calendar year
General

  • 26% expect $1 million to <$5 million
  • 5% have no planned investment
  • 16% expect north of $10 million

By Country

  • Above $5 million: China (#1; 50%), Mexico (#2; 47%)
  • No investment: USA (#1; 16%), Canada (#2; 6%)

(2) Expected disruption by industry
Top Three

  • Automotive: 73%
  • Oil & Gas: 73%
  • Life Sciences: 73%

Bottom of the barrel: Public Sector, Other (both 46%)

(3) Biggest advantages of blockchain
Top Three

  • Greater speed: 32%
  • New business model/revenue: 28%
  • Greater security/lower risk: 21%

Bottom of the barrel: None (2%), Other/Not Sure (1%)

(4) Barriers to greater investment (top 5)

  • Regulatory issues: 39%
  • Implementation – replacing/adapting: 37%
  • Potential security threats: 35%
  • Uncertain ROI: 33%
  • Lack of skills/understanding: 28%

(5) Use cases being explored (top 6)

  • Supply chain: 53%
  • Internet of Things: 51%
  • Digital identity: 50%
  • Digital records: 44%
  • Digital currency: 40%
  • Payments: 30%

(6) Spend to date by industry
Most firms invested ($5 million+)

  • Automotive: 61%
  • Life Sciences: 42%
  • Oil & Gas: 45%
  • Tech, Media, Telecom: 41%

Least firms invested ($5 million+)

  • Public sector: 15%
  • Other: 26%

Takeaways: Executives are slowly wrapping their heads around blockchain, and companies are moving past the idea stage to developing products. Industry front-runners will help shape our thinking in terms of when we can blockchain tech to hit the shelves.

The same goes for activity by country. Some (‘sup, China?) appear fully committed to growing their blockchain sectors, while others (USA)… not so much. We figure that #4 plays a part here as well.

Access to Deloitte’s report is linked above, but let’s save you time – check it out here.

 

 

OTHER NEWS

 

 

 

 

General

(1) BitMEX CEO Arthur Hayes went scorched-earth on Ether in the company’s latest digest… see it to believe it – and to appreciate his candidness – here.

(2) Come for the trading, stay for the lectures: Binance Academy is open for business. The latest branch of CZ’s empire will bring a collection of educational content to the heavily trafficked site.

You heard it here first: other top exchanges will do the same to attract, engage, and retain users. And hey, we’re all for the movement – promoting education is kind of our thing.

Markets
(1) Coinbase acquired Distributed Systems, a team researching decentralized identity solutions. Rather than give up a copy of your information (i.e. centralized route), “a decentralized identity will let you prove that you own an identity… without making a copy” (Coinbase Blog).

Super innovative stuff coming from Distributed Systems – now go wow your boss.

(2) Japanese comms app LINE stretched their blockchain engagement even further, committing $10 million towards their new wholly-owned subsidiary Unblock Ventures. The token venture fund arrives on the heels of LINE’s crypto trading platform, Bitbox, that launched last month.

Products
(1) Everything comes better in threes. That includes dogs, goals, brothers (speaking from experience) and index funds. Bitwise Index Services launchedthree of the latter, which will be hereby known as (1) 20 Mid Cap Crypto Index, (2) 70 Small Cap Crypto Index, and (3) 100 Total Market Crypto Index.

Why indexes are important: “Well-constructed indexes and index-linked products are key to the development of efficient investment and risk management in any new asset class.” – Srikant Dash, Bitwise index advisory board // MDR & Research Head @ Standard & Poor’s Indices.

(2) Bitcoin ETFs are on the back burner for now, though a Bitcoin ETN (exchange-traded notes) known as Bitcoin Tracker One is all the rage. The debt-instrument was listed on the Nasdaq Stockholm exchange back in 2015 and is now quoted in USD for American investors.

Protocols
(1) Wormhole is a protocol created by Bitmain that will allow projects to launch ICO’s on top of Bitcoin Cash. But is it too late? ICO funding took a hit in July, and there are more developers working on other protocols – Ethereum and EOS come to mind – whose guidance can possibly be more valuable for teams.

From that perspective, the protocol sounds like more of a Blackhole… *ba dum, tssss*.

(2) … can’t let Bitcoin Cash get all the attention. Steemit is full steam ahead (had to do it) with developing their own protocol that will also allow projects to raise capital via ICOs and launch “STEEM-like” tokens with unique features.

The hub of smart contract platforms just got larger. Plus, this feels like a trend – will other crypto tokens make similar pivots? Is this a new strategy to attract developers? Is anybody even listening to me?

Problematic
(1) AT&T better call a lawyer. The telecom giant was smacked with a $224 million negligence lawsuit after *allegedly* sharing a customer’s phone number with a hacker, who then *purportedly* stole $24 million in crypto.

How bad was their service? “What AT&T did was like a hotel giving a thief with a fake ID a room key and a key to the room safe to steal jewelry in the safe from the rightful owner” – 69-page complaint.

(2) Playboy sued Global Blockchain Technologies, a Canadian startup whose business performance allegedly fell short of expectations. The bunnies claim GBT did not integrate a crypto token onto their website as promised while leveraging the relationship for their personal gain.

Brain Fuel

  • 7 min read: The power of doing nothing at all (Ayetkin Tank)
  • 5 min read: The road to a Bitcoin ETF (Jordan Clifford)12 min read: Minimum Viable Security (Mason)
  • 19 min read: Pantera Blockchain Letter, August 2018 (Pantera Capital)

 

 

 

 

 

THAT’S ALL FOR TODAY!

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