Cryptocurrency Newsletter October 10th, 2018
This cryptocurrency newsletter analyzes stories about Ethereum 2.0, Binance listing fees, a phone call made without a traditional centralized carrier thanks to Pundi-X, asset tokenization, and an upcoming 51% attack.
Effective immediately, Binance will make all listing fees transparent and donate 100% of them to charity.
Takeaway: There were rumors that Binance forced 100-300BTC listing fees for new cryptocurrencies. This transparency will clear up any unconfirmed rumors people were saying about Binance. This transparency will also encourage competition between exchanges. As one of the premier exchanges, Binance will force smaller exchanges to lower their fees if Binance chooses to make transparent and low listing fees.
Some view this listing fee change as an accounting scheme to pay less taxes. Regardless, It will result in more money being spent towards the development of blockchains and cryptocurrencies.
A Twitch user by the name of Geocold is going to live stream a 51% attack on Einsteinium or another small cryptocurrency. It is the first public and scheduled attack of its kind. The attack is for the sake of education and not malicious purposes.
Takeaway: it will be interesting to see how easy/hard it is for somebody to launch a 51% attack with low resources (money). With recent attacks from other coins like Verge, Bitcoin Gold, Horizen, 51% attacks have been prevalent in 2018.
Although it is meant for educational purposes, this live stream could have negative consequences. If it shows people how easy it is to perform 51% attacks, they may become more frequent in the near future. However, 51% attacks are part of the economics of proof of work blockchains. Ultimately, 51% attacks would lead to survival of the fittest where some of the bigger, more invulnerable blockchains like Bitcoin and Ethereum will get fortified.
In a recent interview, Vitalik Buterin said that Ethereum 2.0 is at the stage Ethereum 1.0 was at during Fall 2014, implying that Ethereum 2.0 may be ready within 2 years. Ethereum 2.0 is supposed to include scalability solutions involved proof of stake (casper) and sharding, as well as some other miscellaneous improvements. No theoretical problems are left unsolved, however, the Ethereum team needs to verify details and perform safety checks.
Takeaway: In early 2018 there was more hype about scaling solutions as there have been in the last couple of months. Talks about Casper and Plasma have been relatively quiet. It is reaffirming to hear Vitalik’s implication that Ethereum 2.0 should be released relatively soon and that there are not any major gaps in the Ethereum 2.0.
Through a partnership between Propellr and Fluidity, tokenization for real estate assets in Manhattan may become a reality.
Takeaway: Tokenization makes assets more liquid, tradable, and transferable, but the specific functionality of tokens still remains in question. Do the tokens represent ownership, tenancy, voting rights, rights to profits? There are still many unanswered questions about the details about how tokenizing assets specifically works.
Pundi X made a phone call using a blockchain without a centralized mobile carrier. More details about their demonstration will be released on October 15th so be on the look out for that. In the mean time, if you are curious about Pundi X, check out Matt’s explanatory video about it here.
Takeaway: Making a phone call through a blockchain without a traditional mobile carrier sounds excited. Who likes paying phone bills? Unfortunately we do not know how this service will compare to competitors yet or if there is much substance to Pundi X’s demonstration at all. We will be able to make a better judgement call on October 15th when they release more details. In the mean time, expect some hype about the Pundi X project and their cryptocurrency NPXS.