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    Ethereum ETH is money

    July 29, 2019

    Ethereum ETH is money

    ETH is money

    Posted: 29 Jul 2019 10:50 AM PDT

    Beyond the technical, most people don't know what Ethereum really is or the fundamental reasons why Ether is valuable.

    Why is ETH valuable?

    Right now, the world's economic networks are mostly nation states. We talk of the US economy or the European economy or the Chinese economy

    But crypto allows the separation of economy from nation state

    Like the US, Ethereum is an economic network

    And just as USD is the reserve currency of the US, Ether is the reserve currency of the Ethereum economy

    ETH is a triple-point asset

    Ether is three types of asset in one:

    First, when deposited into a staking contract Ether acts as a capital asset, like USD in a T-Bill—staked Ether generates a return denominated in Ether which secures the Ethereum economy

    Second, Ether is the required currency to pay for gas in the Ethereum economy, just as USD is required to pay taxes for the security & infrastructure of the US economy—as the Ethereum economy grows the demand for Ether grows

    Third, when locked in a collateralized loan or lent out for interest or stored in a savings account, Ether acts as a money like USD—as the Ethereum economy increases in size & influence and as Ether is increasingly used as a money, Ether's monetary premium increases

    Note: while the first and second uses of Ether outlined above drive demand, it's likely the third ETH as money will be most significant value driver for Ether by far, just as the use of USD as a money is the primary reason USD is valuable relative to other currencies

    DAI is stabilized ETH

    As a speculative asset in an emerging global economy, Ether is volatile. Poor for day-to-day transactions. Fortunately, the Ethereum economy has an embedded volatility-killer, a secondary stablecoin called DAI

    DAI is tethered to USD so that 1 DAI = 1 USD

    DAI is governed by a decentralized central bank in the Ethereum economy called Maker. Every DAI is backed by an overcollateralized amount of Ether, so DAI is essentially a synthetic version of Ether, only...stable!

    Ether & DAI are symbiotic reserve currencies of the Ethereum economy, Ether is the store-of-value money for holding, while DAI is the day-to-day money for spending

    Why is this magical?

    More than a non-sovereign currency, Ethereum is a non-sovereign economy

    It's permissionless like the internet, censorship-resistant like BitTorrent, a public good like TCP/IP

    A decentralized financial system for the world

    And it's just getting started

    Adopted from tweet thread

    submitted by /u/ryanseanadams
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    Introducing Elle: A formally-verified EVM compiler to write more secure Ethereum code

    Posted: 29 Jul 2019 11:29 AM PDT

    [BLOG] Devcon updates: Announcing Wave 2, a New Application window, and more!

    Posted: 29 Jul 2019 01:07 PM PDT

    Week in Ethereum News - this week we celebrate 5 years since the Eth sale, 4 years since the Genesis Block.

    Posted: 29 Jul 2019 01:57 AM PDT

    My Thoughts On The Future Of Ethereum

    Posted: 29 Jul 2019 06:49 AM PDT

    As recommended by u/jtnichol, I've decided to make this a stand-alone post.

    You may disagree with some of the stuff I say, but I think it could lead to further discussion, and also be aware that this is a work in progress and my thoughts are subject to change as time goes on. Please feel free to comment and provide more insight.

    - ETH as money narrative

    I think it's too early to call ETH money, I say this because the original narrative of BTC was that it was a p2p electronic cash system [white paper]. Well as we all know, that narrative is no longer the case. BTC has formed a new narrative, one that many people support and it has driven BTC to much further success than the original narrative. BTC is now known as a digital gold, a SoV. It is my opinion, that ETH will also change it's narrative down the road as many other use cases begin to pop up. There is nothing wrong with this, but I believe the majority of the people will not be using ETH as money and ETH will be used primarily by big businesses transacting on the network, and nodes securing the chain. I believe that if ETH cements the narrative of a type of digital oil, that narrative is still okay. ETH will primarily be used as fuel to power the blockchain.

    - Stablecoins

    I believe stablecoins will become the money used on Ethereum through it's L2 solutions, and I believe majority of the people will use stablecoins to conduct their regular lives on the Ethereum network. I am not sure if DAI will be that stablecoin, but I do believe governments will issue their own stablecoins to be used in their respective countries. The volatility nature of ETH is not something most people feel comfortable conducting business with, or even regular lives. People enjoy the stability of a currency. ETH volatility most likely will slow down, but I believe it can never achieve the stability that stablecoins will provide.

    - Use Cases (Example)

    DeFi has really picked up steam lately, but this is just an early use case of Ethereum's potential. I don't believe DeFi will be what pushes Ethereum into the mainstream. I am going to get really far fetched here, but I think gaming will play a major role in Ethereum's success. I think it's hard to see it now, but it is my belief that Virtual Reality will be a major success within the 10-20 year time-frame. People will have 2 lives, one in the real world and the other in a virtual world and this virtual world will be built on top of Ethereum through it's L2 solutions. If you've ever read the book [Ready Player One (Book)] or the movie [Ready Player One (Movie)] then you can get a feel for what I am envisioning. The value behind virtual assets on Ethereum is important, as unlike today's games where you can purchase an item on Fortnite , once the game is finished you no longer own that virtual item. This will all change with Ethereum because you will have complete ownership over all your virtual items. This is why I say people will have 2 lives, because in this virtual world those items are "real" and can be bought and sold just like real life, using the money earned in this virtual world to also conduct your lives in the real world.

    - ETH 2.0

    It is my belief that with the constant delays of ETH 2.0, many speculators have lost confidence in Ethereum for the time being. I stick by my claim that when full Proof of Stake is on the horizon and is proven to be successful, many of these speculators will return. It is also my belief that speculators and developers do value fast transaction times (In terms of smart contract functionality), as seen by EOS market share. The risk associated with the transition towards PoS should be considered when determining why speculators and investors are not flocking to Ethereum at the present. I am certain, many speculators are waiting on the sidelines to see whether or not ETH 2.0 is a success, and this is something no one knows for certain. This is why I believe ETH is seen as "undervalued" by many in this community. With that being said, ETH 2.0 is extremely important for the success of Ethereum moving forward. There are other risk involved with Ethereum at the moment. As mentioned by u/etherbie, There is still a risk that a competitor takes Ethereum's place and becomes the one in which everything mentioned in my post is done by the competing chain. The likelihood of that happening is small, but we cannot disregard this possibility. When we have situations such as the [EIP 2025] popping up, or developers who aren't completely loyal to a single chain, this could all lead to the destruction of Ethereum. So it's important that we factor in these risks and to protect the future of Ethereum.

    - Final Thoughts

    To re-emphasize, these are purely ideas that I have pondered on for a few weeks now, and are subject to change as others provide further insight. This post was to promote discussion over the potential future of Ethereum.

    submitted by /u/Peng_Fei
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    How does Enterprise Ethereum ensure privacy?

    Posted: 29 Jul 2019 09:11 AM PDT

    People on Augur are Making Surprising Predictions About the Second Democratic Debate

    Posted: 29 Jul 2019 11:17 AM PDT

    How to exploit and profit from any Uniswap exchange that uses an ERC777 token

    Posted: 29 Jul 2019 04:41 PM PDT

    Ready To Stake ETH? How To Make Money On Ethereum 2.0

    Posted: 29 Jul 2019 08:20 AM PDT

    "Secret Sets: Run a Hedge Fund with Enigma and Set Protocol." Learn how combining secret contracts with Sets can allow you to build and deploy private investment strategies. Another cool #DeFi use case!

    Posted: 29 Jul 2019 11:40 AM PDT

    Trust Wallet Meetup on End to End Accessibility in SF

    Posted: 29 Jul 2019 04:11 PM PDT

    Trust Wallet Meetup on End to End Accessibility in SF

    When we come together to share knowledge & ideas, everyone benefits.

    Trust Wallet meetup in SF w/ Viktor Radchenko on open source incentives, Teck Chia introducing Binance X while Leopold Schabel, Sunny Aggarwal, Linda Xie and Stephane Gosselin shared their thoughts on End to End Accessibility

    https://i.redd.it/rfpf01varbd31.jpg

    submitted by /u/pimptee
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    The Space is Really Hungry for That Magic Moment: Austin Griffith -- The Defiant

    Posted: 29 Jul 2019 06:39 AM PDT

    Eth Garage Sales

    Posted: 29 Jul 2019 12:08 PM PDT

    So, I'm thinking about the future of digital ownership that Ethereum is expected to create. Fast forward 40 years from now. Will people tend to accumulate a bunch of virtual assets that eventually become valueless? If I own a bunch of decks for Gods Unchained, but haven't played the game in 20 years, will I be able to simply delete the asset or give it away? Will I need to do an Eth garage sale to clean up these assets? What will that look like? If we open the conversation up outside of gaming and into the broader implications of Eth on our lives, I think we're all going to accumulate a bunch of useless virtual junk (especially the crowd reading this sub :). And since its virtual, it never really goes away...looking for insight, thanks

    submitted by /u/Hathhorne
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    Sending ERC20 to someone's email or twitter handle who doesnt have an ethereum address

    Posted: 29 Jul 2019 01:45 PM PDT

    This is going to sound a little odd, but I need to send an ERC20 (probably USDC) to someone who may or may not want to accept it. Basically I need them to receive an email that lets them claim the crypto I sent using their email address,
    and they can claim it if they wish.

    The point is I need them to see that the money was sent, and I cannot reverse it. Again, sounds odd, and I'd prefer not to go into details of why I need to do this.

    https://blog.blockchain.com/2014/08/26/tutorial-how-to-send-bitcoins-using-email-or-sms-messages/ I was looking at this guide, but it looks like blockchain.com no longer supports this feature. Support hasn't gotten back to me when I asked about it. This guide actually predates eth so no surprises.

    Is anyone aware of another service where I could do this? I also have their twitter handle, if theres a service where I can use that.

    Cheers

    submitted by /u/Karmaologist
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    [OwnPaste] Now with even more decentralized (ENS+IPFS)!

    Posted: 29 Jul 2019 06:06 AM PDT

    Thanks to everyone who checked out the website and made a few short pastes to get the party started.

    There's been a few tweaks made to the UI side, especially around managing multiple peers. This means it is now possible to host the UI in fully decentralized mode via IPFS/Swarm etc.

    So if you have your own IPFS node you can access the UI via http://127.0.0.1:8080/ipfs/QmbtPRxVUEWomdLovjYJZdKjhazSQSyEnGQiYwnFhUab2s

    OR, if you just want to use a public gateway http://ipfs.io/ipfs/QmbtPRxVUEWomdLovjYJZdKjhazSQSyEnGQiYwnFhUab2s

    Better yet, use the new ENS name http://ownpaste.eth.link

    Finally, for maximum decentralization, load it up in a decentralized app browser like Ensquare and just go to ownpaste.eth

    More updates to come in the next few days.

    Still living in the old centralized world? https://ownpaste.com

    submitted by /u/ReinoutWolter
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    Is it possible to create an ERC20 token with an unbounded supply?

    Posted: 29 Jul 2019 10:51 AM PDT

    Just as the question says, is it possible to create a token without an upper limit on quantity?

    submitted by /u/halfjew22
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    Web3.js 1.2.0 + OpenZeppelin Changes Everything | Blockchain Dev Weekly 29 07

    Posted: 29 Jul 2019 09:00 AM PDT

    Decentralized Recording of State as a Service (DRSaaS)

    Posted: 29 Jul 2019 10:56 AM PDT

    I have been thinking for days about the Ethereum valuation narrative and so far the token economics do not make total sense to me. I found it interesting when someone came up with a new valuation metric these days:

    https://twitter.com/cburniske/status/1154070400336355328

    Essentially the metric is Network value to Token Value in which Ethereum massively outperforms EOS (for very good reasons; as we all know EOS is not sufficiently decentralized for large DeFi applications to trust the network). Despite this metric being favorable for Ethereum it is not useful to the Ethereum network at the current state. Ethereum currently charges for transactions; However it does not charge for recording state. If you look at the value proposition that Ethereum has to offer to this world it is the decentralized recording of state. It is not so much the transactions (that are currently priced) that count, but the recording of state over time. In that sense it is comparable to a large ledger that records all the property/companies that we own. Whereas for Uber and Facebook it is important to have as many user transactions as possible for a bank the things that really matter are other metrics such as Assets under management. I argue that business model wise Ethereum is more like a bank than like Facebook.

    Introducing State Rent

    We have all witnessed the advent of SaaS (Software as a Service) and Platform as a Service companies, that eventually found a business model for enterprise software solutions that worked for thousands of start ups and their clients. However, we have not yet witnessed a business model that worked for a DRSaaS (Decentralized Recording of State as a Service ) network.

    Therefore I propose State Rent which is a fee that fungible and non-fungible tokens on the Ethereum network would need to pay on an annual basis. The fee could be as little as 0.1% of their market cap. That percentage is arbitrary. I did not run a mathematical model for a percentage that actually makes sense at this stage. The value of these tokens that are stored on the Ethereum network could be easily calculated based on the price data of DEXes such as Uniswap. Non-fungible tokens that have never been traded could instead pay a small lump sump fee.

    In exchange for their state rent ERC20 and ERC721 tokens receive the service that their state gets recorded on a decentralized and permissionless public ledger. This is the value proposition of Ethereum.

    Let's face it, Ethereum has shifted mostly toward a DeFi platform in the past year. DeFi is so far the only use case that has taken off. What really matters is not the ability to make thousands of transactions but rather the assurance that the assets that are recorded on Ethereum remain save.

    Let's assume a world in the future where we see more of the recently trending Security Token Offerings (I have the feeling that this trend will take off even more in the next months - compare https://www.securities.io/fundament-group-to-issue-e250-million-in-security-tokens-backed-by-german-real-estate/). In such a world it makes sense to charge a state rent instead/on top off of transaction fees. The state rent would be paid in Eth and could be used as a reward for miners/stakers. Right now I feel the token economics are not balanced; you might have a super large STO and all their state gets recorded safely on the blockchain. This represents a very large benefit to the token issuer, however the network itself benefits only marginally from minimal transaction costs. When Ethereum was first designed it was not foreseeable that DeFi would become the killer application. Therefore I believe it makes sense to reassess the token economics at the current stage.

    submitted by /u/ro-_-b
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    Streamr is backing our partner Elk’s kickstarter to produce development boards for the decentralized web. It's great to see another gateway open to Ethereum and de-siloed IoT data.

    Posted: 29 Jul 2019 04:27 AM PDT

    ProgPow Audit Update — July 2019

    Posted: 29 Jul 2019 03:30 AM PDT

    ERC 1973 Alliance

    Posted: 29 Jul 2019 09:53 AM PDT

    Hello Vitalik fans,

    I'm looking to form an alliance around EIP 1973 Scalable Rewards. I think this will be a really useful ERC for the application layer - deals with scaling and allows you to distribute rewards for 'n' participants by letting you escape the block gas limit issue!

    link to EIP - https://github.com/ethereum/EIPs/blob/master/EIPS/eip-1973.md

    ideally wanna follow Mr. Fabian and create something like this - https://erc725alliance.org/

    The proposal is open to interested companies, independent developers and tech enthusiasts cause it's all about building the new open web3 !

    You can send me your contact information in a DM or comment here and I'll reach out accordingly. Thanks!

    submitted by /u/trontomoon
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    Bounty0x Company Update — July 25, 2019

    Posted: 29 Jul 2019 09:14 AM PDT
    Read more
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