Until one understands the basics of this tech, they won’t be able to grasp or appreciate the impact it has on our digital bank, Genesis Block.submitted by mickhagen to genesisblockhq [link] [comments]
This is the second post of Crypto-Powered — a new series that examines what it means for Genesis Block to be a digital bank that’s powered by crypto, blockchain, and decentralized protocols.
Our previous post set the stage for this series. We discussed the state of consumer finance and how the success of today’s high-flying fintech unicorns will be short-lived as long as they’re building on legacy finance — a weak foundation that is ripe for massive disruption.
Instead, the future of consumer finance belongs to those who are deeply familiar with blockchain tech & decentralized protocols, build on it as the foundation, and know how to take it to the world. Like Genesis Block.
Today we begin our journey down the crypto rabbit hole. This post will be an important introduction for those still learning about Bitcoin, Ethereum, or DeFi (Decentralized Finance). This post (and the next few) will go into greater detail about how this technology gives Genesis Block an edge, a superpower, and an unfair advantage. Let’s dive in…
Bitcoin: The First CryptocurrencyThere are plenty of online resources to learn about Bitcoin (Coinbase, Binance, Gemini, Naval, Alex Gladstein, Marc Andreessen, Chris Dixon). I don’t wanna spend a lot of time on that here, but let’s do a quick overview for those still getting ramped up.
Cryptocurrency is the most popular use-case of blockchain technology today. And Bitcoin was the first cryptocurrency to be invented.
Bitcoin is the most decentralized of all crypto assets today — no government, company, or third party can control or censor it.Bitcoin has two primary features (as do most other cryptocurrencies):
The fact that there are so few things one can do with Bitcoin is one of its greatest strengths.Its design is simple, elegant, and focused. It has been 10+ years since Satoshi’s white paper and no one has been able to crack or hack the Bitcoin network. With a market cap of $170B, there is plenty of incentive to try.
Public AwarenessA few negative moments in Bitcoin’s history include the collapse of Mt. Gox — which resulted in hundreds of millions of customer funds being stolen — as well as Bitcoin’s role in dark markets like Silk Road — where Bitcoin arguably found its initial userbase.
However, like most breakthrough technology, Bitcoin is neither good nor bad. It’s neutral. People can use it for good or they can use it for evil. Thankfully, it’s being used less and less for illicit activity. Criminals are starting to understand that transactions on a blockchain are public and traceable — it’s exactly the type of system they usually try to avoid. And it’s true, at this point “a lot more” crimes are actually committed with fiat than crypto.
As a result, the perception of bitcoin and cryptocurrency has been changing over the years to a more positive light.
Bitcoin has even started to enter the world of media & entertainment. It’s been mentioned in Hollywood films like Spiderman: Into the Spider-Verse and in songs from major artists like Eminem. It’s been mentioned in countless TV shows like Billions, The Simpsons, Big Bang Theory, Gray’s Anatomy, Family Guy, and more.
As covid19 has ravaged economies and central banks have been printing money, Bitcoin has caught the attention of many legendary Wall Street investors like Paul Tudor Jones, saying that Bitcoin is a great bet against inflation (reminding him of Gold in the 1970s).
Cash App already lets their 25M users buy Bitcoin. It’s rumored that PayPal and Venmo will soon let their 325M users start buying Bitcoin. Bitcoin is by far the most dominant cryptocurrency and is showing no signs of slowing down. For more than a decade it has delivered on its core use-cases — being able to send or store value.
At this point, Bitcoin has very much entered the zeitgeist of modern pop culture — at least in the West.https://preview.redd.it/dnuwbw8mfu951.png?width=800&format=png&auto=webp&s=6f1f135e3effee4574b5167901b80ced2c972bda
Ethereum: Programmable MoneyWhen Ethereum launched in 2015, it opened up a world of new possibilities and use-cases for crypto. With Ethereum Smart Contracts (i.e. applications), this exciting new digital money (cryptocurrency) became a lot less dumb. Developers could now build applications that go beyond the simple use-cases of “send value” & “store value.” They could program cryptocurrency to have rules, behavior, and logic to respond to different inputs. And always enforced by code. Additional reading on Ethereum from Linda Xie or Vitalik Buterin.
Because these applications are built on blockchain technology (Ethereum), they preserve many of the same characteristics as Bitcoin: no one can stop, censor or shut down these apps because they are decentralized.One of the first major use-cases on Ethereum was the ability to mint and create your own token, your own cryptocurrency. Many companies used this as a way to fundraise from the public. This led to the 2017 ICO bubble (Initial Coin Offerings). Some tokens — and the apps/networks they powered — were fascinating and innovative. Most tokens were pointless. And many tokens were outright scams. Additional token reading from Fred Ehrsam, Balaji, and Naval.
Digital Gold RushJust as tokens grew in popularity in 2017–2018, so did online marketplaces where these tokens could be bought, sold, and traded. This was a fledgling asset class — the merchants selling picks, axes, and shovels were finally starting to emerge.
I had a front-row seat — both as an investor and token creator. This was the Wild West with all the frontier drama & scandal that you’d expect.Binance — now the world’s largest crypto exchange —was launched during this time. They along with many others (especially from Asia) made it really easy for speculators, traders, and degenerate gamblers to participate in these markets. Similar to other financial markets, the goal was straightforward: buy low and sell high.
That period left an embarrassing stain on our industry that we’ve still been trying to recover from. It was a period rampant with market manipulation, pump-and-dumps, and scams. To some extent, the crypto industry still suffers from that today, but it’s nothing compared to what it was then.
While the potential of getting filthy rich brought a lot of fly-by-nighters and charlatans into the industry, it also brought a lot of innovators, entrepreneurs, and builders.The launch and growth of Ethereum has been an incredible technological breakthrough. As with past tech breakthroughs, it has led to a wave of innovation, experimentation, and development. The creativity around tokens, smart contracts, and decentralized applications has been fascinating to witness. Now a few years later, the fruits of those labors are starting to be realized.
DeFi: Decentralized FinanceSo as a reminder, tokens are cryptocurrencies. Cryptocurrencies can carry value. And value is a lot like money. Because tokens are natively integrated with Ethereum, it’s been natural for developers to build applications related to financial services — things like lending, borrowing, saving, investing, payments, and insurance. In the last few years, there has been a groundswell of developer momentum building in this area of financial protocols. This segment of the industry is known as DeFi (Decentralized Finance).
In Q2 of 2020, 97% of all Ethereum activity was DeFi-related. Total DeFi transaction volume has reached $11.5B. The current value locked inside DeFi protocols is approaching $2 Billion (double from a month ago). DeFi’s meteoric growth cannot be ignored.
Most of that growth can be attributed to exciting protocols like Compound, Maker, Synthetix, Balancer, Aave, dYdX, and Uniswap. These DeFi protocols and the financial services they offer are quickly becoming some of the most popular use-cases for blockchain technology today.
This impressive growth in DeFi certainly hasn’t come without growing pains. Unlike with Bitcoin, there are near-infinite applications one can develop on Ethereum. Sometimes bugs (or typos) can slip through code reviews, testing, and audits — resulting in loss of funds.
Our next post will go much deeper on DeFi.
Wrap UpI know that for the hardcore crypto people, what we covered today is nothing new. But for those who are still getting up to speed, welcome! I hope this was helpful and that it fuels your interest to learn more.
Until you understand the basics of this technology, you won’t be able to fully appreciate the impact that it has on our new digital bank, Genesis Block. You won’t be able to understand the implications, how it relates, or how it helps.
After today’s post, some of you probably have a lot more questions. What are specific examples or use-cases of DeFi? Why does it need to be on a blockchain? What benefits does it bring to Genesis Block and our users?
In upcoming posts, we answer these questions. Today’s post was just Level 1. It set the foundation for where we’re headed next: even deeper down the crypto rabbit hole.
Other Ways to Consume Today's Episode:
Have you already downloaded the app? We're Genesis Block, a new digital bank that's powered by crypto & decentralized protocols. The app is live in the App Store (iOS & Android). Get the link to download at https://genesisblock.com/download
Silk Road Bitcoin Auction! The United States Marshal’s office announced today that they will auction off about 29,000 bitcoins it seized from Silk Road last year. The 29,000 bitcoins the FBI is tagged to auction is only a fraction of the amount of bitcoins taken from the illegal drug online marketplace! The FBI stands to collect more than $18 millions for the auction – according to current ... Silk Road Coins auf Wanderschaft. Vor einigen Tagen hat nun ein solcher Hobby-Blockchain-Detektiv berichtet, dass eine Wallet, die mit dem legendären Online-Drogen-Bazaar Silk Road in Verbindung steht, Guthaben bewegt. Die Wallet enthielt ursprünglich 111.114,62 Bitcoins (und ebenso viele Bitcoin Cash), die sie in mehreren Schritten auf viele ... In den Anfangszeiten von Bitcoin war BTC bevorzugte Währung im Darknet. Die Plattform Silk Road nahm bis zu ihrer Schließung große Bitcoin Beträge ein, ihr Gründer sitzt im Gefängnis. Nun wurden überraschend Silk Road zugerechnete Bitcoin für 1 Milliarde US-Dollar bewegt. Bei Ewiggestrigen wird Bitcoin (BTC) nur schwer den Ruf los, eine virtuelle Währung hauptsächlich für illegale ... Recent data from the XRPL Monitor transaction tracker reveals that, over the past twenty hours, the blockchain decacorn Ripple made several transfers of 90.8 mln XRP in total and received 13.1 mln from Binance.. Slightly under 100 mln XRP wired by Ripple. As per tweets posted by popular XRP transaction tracker XRPL Monitor over the past twenty hours, the San Francisco-based DLT giant Ripple ... Binance kündigt den Start ihrer Kreditplattform an. Anleger können auf ihre ungenutzten Krypto-Assets eine Rendite von bis zu 15 Prozent generieren. Source: BTC-ECHO Der Beitrag Binance: Bitcoin-… Dem Bericht zufolge hat ein anonymer Benutzer 69.370 Bitcoin von einer Adresse aus verschoben, die mit einem der ersten Märkte der Silk Road in Verbindung steht, der Silk Road. Ciphertrace spekulierte, dass die neue Transaktion höchstwahrscheinlich durchgeführt wurde, um zwischen alten und neuen Adressformaten zu wechseln. Nicht nur US-Wahlen sind derzeit spannend, sondern auch die Bewegungen innerhalb einer der reichsten Krypto-Geldbörsen Binance war zuvor nach seinem Weggang aus China im Jahr 2017 in Japan ansässig, verblieb aber knapp ein Jahr, bis das Unternehmen seine Büros nach Malta verlegte. Die Verlagerung geschah, nachdem im Jahr 2018 die Börse von den japanischen Aufsichtsbehörden bei der FSA verwarnt wurde, da die Börse ohne Lizenz arbeitete. Außerdem waren Änderungen der Krypto-Vorschriften durch den ... She doesn’t remember exactly how the Silk Road case got opened in New York, but she recalls Senator Chuck Schumer read a Wired article that prompted him to wonder why the marketplace was allowed ... Binance Coin $ 26.78 0.83%. Polkadot $ 4.07 3.48%. Litecoin $ 54.51 2.94%. Cardano $ 0.095308 3.84%. Alle Kurse . Meinungs-ECHO US-Notenbank treibt Bitcoin-Kurs womöglich über 1.000.000 US-Dollar – Raoul Pal . Startseite; Aktuelle Artikel im Überblick; Insights; Kolumne; Fed treibt Bitcoin-Kurs womöglich über 1.000.000 US-Dollar – Raoul Pal . von Christopher Klee. Am 31. August 2020 ...
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