MONDAY 13TH JANUARY 2014
A Turing-Complete Cryptocurrency http://ethereum.org/ethereum.html
At first glance, looks awesome. Best altcoin so far – Ryan X. Charles
Monday 20th January 2014
Monday 20th January 2014
The 19-year-old behind Ethereum is insanely smart
Vitalik Buterin is 19 years old, and he has never been paid in dollars. Ever since he started earning a full-time salary he has been paid solely in Bitcoin. His new project is called Ethereum, a new digital currency that Buterin created and which he’s launching in about two weeks.
In a whitepaper that he showed me at CES in Las Vegas, Buterin writes Ethereum is “a superior foundational layer offering a uniquely powerful scripting system on top of which arbitrarily advanced contracts, currencies and other decentralized applications can be built.”
Buterin is opening up Ethereum to allow other things such as integration with stocks and bonds and algorithmic trading to be built on top of it. – Zara Stone
MONDAY 27TH JANUARY 2014
The most innovative block-chain based cryptocurrency since Bitcoin itself, and the only one that I would bother acquiring units of – Chris Odom, Open Transactions
I am studying ehtereum, have been for more than a month now and having discussions about it. After all, I believe in multi-crypto-coin world. People asking my opinion on ethereum. It’s too soon for me to form one, but I like coins with a purpose, a clear distinction and it has both. I look for several things in an alt-coin. A distinguishing and significant feature, transaction volume, mining and dev team strength. From a technical perspective, I’m fascinated by the byte-code-like turing-complete Tx script in ethereum. You can write compilers – Andreas Antonopoulos
Friday 31st January 2014
January has been a huge month and it’s surprising how much attention they’ve received. The bitcoin community is very excited about ethereum, with massive anticipation building for the launch. One line of thought is that bitcoin will be used for money and ethereum will be used for everything else (smart contracts). If ethereum can live up to expectations it will be interesting to see how it coexists with bitcoin.
The currency unit for ethereum will be named “ether”. It will most likely become one of the most valuable alt-coins on the market in a short space of time.
Units of ether were planned to be sold at a February 1st fundraiser, but this has been postponed. The new IPO date will be posted on the official site Ethereum.org
MONDAY 3RD FEBRUARY 2014
One of the first applications I’d build on ethereum would be bidirectional ether to bitcoin exchange, a decentralized exchange as an ethereum contract, and then you’ve got some strong linkage to bitcoin. I think the 2 together could work quite nicely as a synergy if I could buy contracts on ethereum with bitcoin. That would be quite a nice useful way to expand the ability of Bitcoin to do smart contracts and at the same time take advantage of the network effect and currency value embedded in bitcoin from all of the investment over the last 5 years.
So I think there’s room for a lot of different alt-coins, a lot of different blockchain solutions and they can all work together quite nicely – Andreas Antonopoulos
Monday 10th February 2014
A few weeks from now is the best guess. Originally, we actually wanted the fundraiser to last 2 months, from Feb 1 to Mar 31. Because we’re giving much more advance warning, we might cut this a bit shorter, but it’ll certainly be longer than 1 week.
Our official website fund ethereum.org when we are ready alongside our partner wallets. Bitcoin only. Our goal is to make the procedure frictionless using wallets such as KryptoKit and Hive wallet.
When the pre-sale is going live you will be able to purchase ether by sending Bitcoin to the generated address and providing an email address. The email address will allow you to recover the funds in case of a disastrous event with your device as long as you can provide the password or the wallet file.
1 BTC = 1000 ether, during the first week you will have a 2X multiplier (i.e. 1 BTC = 2000 ether). First week investors will realize 2x the product value.
The purchase period is planned to last ~60 days. There will be no cap. You have the option to buy as much ether as you wish. – Ethereum Founding Team AMA
MONDAY 24TH FEBRUARY 2014
Chirs Powell pointed that it is too early to say whether many of the emerging altcoins will succeed over time. He pointed to Ethereum specifically, saying that it is “months away” from having software that is ready. – Daniel Cawrey
Very interested and will be testing ethereum as soon as it launches. Want to buy ethereum contracts with Bitcoin. – Andreas Antonopoulos
MONDAY 10TH MARCH 2014
I know a tidbit of info about an open source project that the Ethertards wish would die that’s going to revolutionize altcoins Automatic contract fulfillment for distributed network altcoin trading. Wallet-to-wallet. – Bryce Weiner
MONDAY 10TH MARCH 2014
Ether Sales Update
The current ETA is 2-6 weeks (date of this post: March 7th). – Ethereum
That pre-mined pyramid scheme is going to crash harder than that AstroCoin. Ethereum doesn’t need a coin *at all*. That’s what makes it so scammy.
Using SSSS, one could create and sign multi-party contacts with proof-of-ownership in the blockchain. NO PSEUDOCOIN REQUIRED. – Bryce Weiner
MONDAY 24TH MARCH 2014
We’re working heavily with OpenTransactions.
OpenTransactions technology allows you to do a lot of the same things that Bitcoin does except with much lower fees. You could do High Frequency Trading 10,000 transactions a second, almost no charge. You can do micro transactions.
It’s not going to be blockchain based and decentralized in the same way that Bitcoin is, but the servers are auditable so it’s very low trust in that sense. If Mt Gox had been running an OT server as their backend, we would have known something was up. – Vitalik Buterin
TUESDAY 1ST APRIL 2014
You still on your 30 day no spend? – Tom Hashemi
I’m a free man when it comes to trading, but I’m saving for the ether IPO – TwoBitIdiot
TUESDAY 8TH APRIL 2014
De Filippi has made Ethereum a major focus of her research, and she says that cryptocurrency investors are starting to do the same. “They are really, really excited, and they will invest a lot of money in Ethereum, which didn’t happen at the beginning of Bitcoin.”
A pre-sale of ether is slated to begin within a few weeks, although the Ethereum network itself won’t be operational until later this year, at the earliest. – Nathan Schneider
FRIDAY 25TH APRIL 2014
Very intrigued by Ethereum @ethereumproject would love to talk to you guys – David Marcus, Paypal President
The only criticism I have so far of Ethereum is that the one chain becomes an SPOF: one app may negatively impact another app. On the flip side, there are clearly advantages to having multiple apps on a big strong chain. Benefits vs. costs. That said Ethereum is a neat experiment to watch. Ethereum hackathons will produce some interesting projects. – Jeff Garzik
FRIDAY 25TH APRIL 2014
The Contractual Business Platform of The Future
If Ethereum becomes the contractual business platform of the future, I want my share of Ether, before it goes mainstream.
Unfortunately, there isn’t much going on with Ethereum right now, their IPO fell through and their forum doesn’t have a significant number of recent posts. Those who want information regarding updates on their IPO sale should stay tuned to their website, ethereum.org.
Clearly Vitalik, the brains behind Ethereum, is an intelligent guy, but will he and the marketing team be able to win the race in the cryptocurrency/smart contract war? Here is a post of him talking about dominant assurance contracts for those who want a glimpse inside the mind of a genius. –Cryptobang
MONDAY 19TH MAY 2014
DAOs, DACs, DAs
One of the most popular topics in the digital consensus space (a new term for cryptocurrency 2.0 that I’m beta-testing) is the concept of decentralized autonomous entities
Many of us have been frustrated by the lack of coherent terminology here; as Bitshares’ Daniel Larimer points out, “everyone thinks a DAC is just a way of IPOing your centralized company.”
Organizations with Humans at the Center
1 – Boring old organizations (Humans at center)
Google is an organization in this classification, not an autonomous agent, because (1) the work is done by people, and (2) the management is done by people
2 – Robots (Assembly Lines)
Organizations with Automation at the Center
3 – Distributed Autonomous Organizations
I would place Uber halfway between an organization and a DAO (although it’s not decentralized) because the primary decision-making process, the matching of drivers with passengers, is done automatically, though not all aspects follow that model.
4 – Artificial Intelligence (holy grail)
MONDAY 9TH JUNE 2014
The idea of a generalized blockchain platform with Turing complete language that can enable a myriad of applications to be custom written for that language.
I think that is a tremendous innovation, and I’m not saying Ethereum will be it but what Ethereum does will happen one way or another, perhaps by Ethereum, perhaps by a clone of Ethereum or perhaps by something that comes even later, but it gives you a glimpse into just what is possible.
The design pattern of a Turing complete platform based on the blockchain for negotiating contracts is brilliant and genius on a level almost equivalent to Satoshi in terms of taking existing technologies and just pushing them to a whole other level. I think Vitalik is one of the most brilliant people ever for building and designing it and coming up with the idea – Andreas Antonopoulos
MONDAY 16TH JUNE 2014
I’ve been thinking about ethereum a bit recently. Parts of it are pretty interesting.
Some of it seems like needless re-engineering (like creating a new proof-of-work or a new currency). And in general, I suspect they’re trying to do too much– “complexity is the enemy of security”– and will end up either radically reducing the scope of what they’re trying to do or will get tired of playing whack-a-mole with security and DoS vulnerabilities.
Bitcoin already provides a global currency and distributed ledger– there is no need to re-invent those wheels. Combining real-world information with Bitcoin is where things start to get really interesting –Gavin Andresen
Monday 28th July 2014
Future of capital allocation: Ethereum raises $750,000 in 2 hours from private parties all over the world – https://blockchain.info/address/36PrZ1KHYMpqSyAQXSG8VwbUiq2EogxLo2 – Erik Voorhees
Almost $5 milllion raised in the first 5 days – Lee Banfield
Ethereum huge: persistent state, permissionless flexibility to create own Nakamoto-consensus apps. No opnn on price of ether. Ethereum has vast potential, whereas Bitcoin won’t ever do anything well beyond implementing a currency – Nick Szabo
Ethereum refund policy if stuff doesn’t launch, “We will send you one picture of our boat for every 1000$ you sent.”- Jeremy Ross
Thursday 7th August 2014
Ethereum have any new useful ideas? seemed more kitchen-sink coin from current ideas. execution = script or development record? – Adam Back, Creator of Hashcash, 1997
Ethereum has the best ideas in block chain tech. Execution, not so much. They’ve combined most of the best ideas. Not about who originated. Execution = development record: not finishing what they start. – Nick Szabo, Creator of Bit gold, 1998-2005
Saturday 9th August 2014
Ethereum has raised 25,000 Bitcoin ($15 million) in its first 16 days – Lee Banfield
Tuesday 16th September 21014
Think Twice Before Throwing Away Even a Couple Millibits Towards Bitcoin 2.0 Schemes
Bitcoin is poised for exponential growth, so the opportunity costs of not being involved to the highest personal degree possible are incalculable.
Yet merchants, investment peddlers, and other hoarders have been able to convince countless bitcoiners to part with their future riches, despite the obvious downsides given you have a long enough time horizon to see the coming post-fiat world. They’ll tell you spending is vital, that Bitcoin 2.0 will be even better if only you give them some of your Bitcoin 0.9, or that your bitcoins are worth only $475 a piece. They’ll tell you this with a straight face, the wringing of their hands unseen across the Internet.
Bitcoin is exciting. Looking at a static wallet file and balance is not. Instead of holding and forgetting, many bitcoiners choose to “put that money to use,” and endless crypto-peddlers are ready to snatch your bitcoins up. They’ll offer you mining contracts, present their plans for a hedge fund, or entice you into investing in a Bitcoin company. Today, the most popular investment vehicle for bitcoiners are Bitcoin 2.0 schemes, ranging from Mastercoin to Ethereum.
Long term investors should use Bitcoin as their unit of account and every single investment should be compared to the expected returns of Bitcoin.
If hyperbitcoinization occurs, Bitcoin holders will see their purchasing power increase by orders of magnitude. Bitcoiners should think twice before throwing away even a couple millibits towards a project “just to see where it goes.” A running joke in the community is how expensive the two pizzas Laszlo bought were. We joke about a million dollar pizza, and hyperbitcoinization has not even occurred yet. I praise Laszlo for his entrepreneurial use of a new technology, but I do not wish for myself or others to be a Laszlo.
My friends and I joke about starving due to the intense deflation, but I can’t say I don’t look back and wish I had skipped a couple lunches in the crappy dorm cafeteria to buy $10 bitcoins when I had the chance. Hyperbitcoinization will not be a force to trifle with. Even a marginal bitcoin holding right now will constitute a very significant majority of a bitcoiner’s portfolio. Once it happens, there is no going back. One day, your Bitcoin balance will likely never see the decimal point move to the right again. – Michael Goldstein
Tuesday 23rd September 2014
One of the projects that Odom was not willing to demonize during his opening statements wasEthereum. When asked about his thoughts on the project and their $15 million crowdsale, Odom simply stated, “It’s too early to tell.” Kyle Torpey
Monday 20th October 2014
Why Open Transactions? Because Appcoins Suck
Here’s the endgame as I imagine it:
* Bitcoin is base money. It is used as cash for most types of routine purchases.
* The blockchain also serves a few non-monetary roles, like hosting colored coins.
* OT is a contract-processing system. It is used for financial instruments (everything that is not base money): loans, stocks, bonds, trade credit, smart contracts, all types of credit in general
* In order to achieve federation, OT will rely heavily on colored coins
* Colored coins can’t host their own metadata in the blockchain, so they need some type of external metadata processing system in order to be useful.
* OT will become the standard metedata system for colored coins
* OT + colored coins makes Ripple, Counterparty, Mastercoin, Bitshares, etc all redundant.
* Users will prefer OT+CC to all the above because OT+CC doesn’t require them to purchase tokens from IPO investors.
* Ethereum is impractical for reasons beyond the scope of this post
* Openbazaar-style functionality is already being added to the reference OT GUI
* OT will survive because it has avoided the mandatory token approach, all the other projects will not.
Monday 29th September 2014
Ethereum itself is economically broken. An increase in ‘ether’ value raises costs for unrelated apps A, B & C.
App A gets popular, App B becomes more expensive to use (& execute). You don’t want apps tied together economically like that. See http://namecoin.info for a better example of the future.
With Ethereum, an overnight bubble can mean you cannot use your favorite app, as it just became too expensive – Jeff Garzik
Friday 21st November 2014
Counterparty / Ethereum
What a coup! CounterpartyXCP,
* Grabs the good stuff – Ethereum tech
* Ditches the bad stuff – Wonky economics, new chain. This is precisely what I’ve been telling people to do since Ethereum appeared. Ethereum has good tech, broken economics, and useless chain.
Core ethereumproject mistake: They let the fund raising dictate the tech. Ass backwards. Did not put product first. “Coin IPO” now locks ethereumproject into separate chain, even if not the best tech (it is not). Short term seed dictates long term design.
Tuesday 25th November 2014
Pierre Rochard: Ethereum will have to overcome Bitcoin’s liquidity advantage, take on risks of a rewrite from scratch, and implement complex features. The first challenges economic law, the second two are Herculean feats of software engineering. God speed.
Oh and they have to do it all before their theoretical competitive advantages are eroded by incumbents and challengers –
Jimmy Song: Don’t forget all the coin cloners that have access to the same open source code
Pierre Rochard: yes, that makes their pre-sale especially amazing
Saturday 13th December 2014
The Dawn of Trustworthy Computing
“Block chain computer” (not just “block chain”) & “fiduciary code” very helpful concepts for building mental model – Richard Gendal Brown
The most elegant explanation of on-chain computing, well, ever. By Nick Szabo – Stephan Tual
This Nick Szabo post on the ‘rise of trustworthy computing’ is one of the top 10 things I have read on blockchains – Antonis Polemitis
This new Nick Szabo article “The dawn of trustworthy computing” is a roadmap to about a dozen new companies – BTCplainEnglish
Today’s computers are not very trustworthy, but they are so astronomically faster than humans at so many important tasks that we use them heavily anyway. We reap the tremendous benefits of computers and public networks at large costs of identity fraud and other increasingly disastrous attacks.
Recently developed and developing technology, often called “the block chain”, is starting to change this.
A block chain computer is a virtual computer, a computer in the cloud, shared across many traditional computers and protected by cryptography and consensus technology. A Turing-complete block chain with large state gives us this shared computer.
QuixCoin is a recent and Ethereum is a current project that has implemented such a scheme. These block chain computers will allow us to put the most crucial parts of our online protocols on a far more reliable and secure footing, and make possible fiduciary interactions that we previously dared not do on a global network
Much as pocket calculators pioneered an early era of limited personal computing before the dawn of the general-purpose personal computer, Bitcoin has pioneered the field of trustworthy computing with a partial block chain computer.
Bitcoin has implemented a currency in which someone in Zimbabwe can pay somebody in Albania without any dependence on local institutions, and can do a number of other interesting trust-minimized operations, including multiple signature authority. But the limits of Bitcoin’s language and its tiny memory mean it can’t be used for most other fiduciary applications, the most obvious example being risk pools that share collateral across a pool of financial instruments.
A block-chain computer, in sharp contrast to a web server, is shared across many such traditional computers controlled by dozens to thousands of people. By its very design each computer checks each other’s work, and thus a block chain computer reliably and securely executes our instructions up to the security limits of block chain technology, which is known formally as anonymous and probabilistic Byzantine consensus (sometimes also called Nakamoto consensus).
Trust-minimized code means you can trust the code without trusting the owners of any particular remote computer. Regardless of where any of the computers or their owners are, the block chain computer they share will execute as reliably and securely as consensus technology allows, up to the aforementioned limits. This is an extremely high level of reliability, and a very high level of security, compared to web server technology.
While there is much futurism in many block chain discussions, including many trying to solve problems that aren’t actually solved by the block chain, I will generally stick to low-hanging fruit that could be usefully implemented on Quixcoin, Ethereum, or similar technology in the near future, often interfacing to still necessary parts of traditional protocols and institutions rather than trying to reinvent and replace them in whole – Nick Szabo
Monday 29th December 2014
Decentralized Internet Projects
Seeing Ethereum increasingly characterized as decentralized Internet substitute rather than a bitcoin substitute. Off the top of my head, MaidSafe, meshnet, and Namecoin are all “decentralize the Net” approaches – Andrea Castillo
Thursday 1st January 2015
Intense hype surrounded the Ethereum project which has so far delivered little. Vitalik Buterin became a household name in the bitcoin world and won numerous plaudits over the year (awarded a Thiel fellowship, won the World Technology Network prize).
After generating much excitement in 2014, the first quarter of 2015 brings heavy pressure to deliver something spectacular. – Lee Banfield
Sunday 11th January 2015
Ethereum vs. Counterparty
Ethereum ppl very smart, can’t be counted out. However, Bitcoin network effect + Counterparty hard to overcome – Balaji S. Srinivasan, Andreessen Horowitz
The ethereumproject has one _great_ thing (contract lang) and many flaws (fund raising drives tech, broken econ, PoS,..)
Proof of Stake, which is heavily flawed, not an “upgrade”. In PoS, stakeholders are censors: They may arbitrarily censor transactions (fundamental to consensus), like miners. In PoS, stakeholders are gatekeepers. You must get your stake from an existing stakeholder. Central bankers baked in. Proof of Work is more permission-less, and features greater separation of powers.
PoW has flaws, but it is not a closed system that suffers from costless simulation & other math-provable problems – Jeff Garzik, BitPay
Sunday 18th January 2015
Since bitcoin has lost a lot of value since the crowdsale does this not affect the project in any way?
We unfortunately tied out feet to the anchor to a large extent, though have been selling larger amounts lately. We got another $465k sold through private buyers just 30 minutes before the latest $30 drop (if there’s a causal relationship sorry guys!). We have enough fiat to get ethereum launched at the very least – Vitalik Buterin, Ethereum
Bitcoin Sidechains vs. Ethreum
Truthcoin is planned to be a sidechain of Bitcoin. This means you can switch between Bitcoin and Truthcoin’s CashCoin as much as you wish, whenever you wish
The goal of this project is to get external data into the blockchain reliably, and use that data efficiently and conservatively.
Truthcoin attempts to create a trustless oracle, which reliably absorbs accurate data into a blockchain for use in Prediction Markets. These markets have many applications (which include superior alternatives to Lighthouse, Counterparty/Medici, BitsharesX, and Ethereum, for a start).
If you’ve got only a few seconds to spare: Truthcoin in Six Slides.
Thursday 5th March 2015
Vitalik Buterin: Reminder: the Ethereum team has >30 people, many of whom have way more software dev exp than I do. Project is much bigger than just myself.
Cazalla: Is this your way of saying don’t blame me once investors figure out they blew 30k bitcoin?
Thursday 5th March 2015
Vitalik Buterin: Blockchains are a friggin database technology; 5 years down I doubt any users will care what the underlying network token is.
Jon Matonis: Disagree. Resiliency of the database network is the main purpose of the underlying token, which makes it about survival. If you think that the underlying network token doesn’t matter for the block chain, you’re doing it wrong.
Michael Goldstein: Not all ledgers are equal. Network size + liquidity suggest Bitcoin maximalism. Setting a reminder for Feb 23, 2020.
Wednesday 18th March 2015
Does everything I say have to revolve around cryptocurrency? I’ve been explicitly trying to expand my mind beyond that lately – Vitalik Buterin
Monday 20th April 2015
Initially I was into the blockchain of things idea, but after spending the last 12 months pondering on it, I realized how foolish it is.
The bitcoin blockchain has absolutely no benefit, but many negatives on anything that does NOT require being immutable, fungible, non-discriminatory, and trustless. UBS does not want these features, and pizza delivery boys don’t care.
I would be glad to see a decent reason to use blockchain technology outside of bitcoin – its definitely not competition but interesting technology – but there are very few good usecases. Money needs these features, stock issuance can be interesting with these features. At best, this is over-engineering at its finest.
I think a lot of people are comparing the blockchain to the internet, in that it will eventually be part of every aspect of most peoples’ lives. However the internet was, like most advances, more efficient. The car is faster than the horse, the plane faster than the boat, the internet faster than the mail. Equally bitcoin is faster than government restrictions on international payments, the blockchain faster than an SQL database? No. That is not the case. – William Dunne
Monday 15th June 2015
standardcrypto: Memo to Etehereum Foundation Council: impudence begins with calling your investors “donors”
fireinyourhole: in the doc some devs are admitting they have funds for a few more months and need to raise more money
Kelley Becker, deputy assistant to Jeffrey Wilkes of the Ethereum Foundation Council, just called ethereum investors “donors” in a skype chat leaked by (former?) ethereum employee Matt Liston:
[5/15/15, 11:58:16 AM] Matt Liston: Ethereum has plenty of investors
[5/15/15, 11:58:35 AM] Kelley Becker: Donors
[5/15/15, 11:58:39 AM] Kelley Becker: Not investors
Sunday 28th June 2015
Ethereum’s Frontier Release
Prediction markets at Fairlay.com seem to indicate that the release won’t happen until after August 1. This is far off from the project’s original launch date.
Saturday 21st November 2015
Just about the only altcoin (it’s much more than an altcoin) that’s worth paying attention to is Ethereum, and that’s because it’s got a better smart contract language than Bitcoin.
Satoshi was very conservative with Bitcoin’s smart contract language because he wanted Bitcoin to be first and foremost a currency. He used a reduced generality, pocket calculator type of scripting language, whereas Ethereum is like a general purpose computer for doing smart contracts (Pocket Calculator vs. Apple Computer).
The good news is that Sergio Lerner is working on Rootstock, which would use Ethereum as a sidechain of Bitcoin so you’ve potentially got, if you can make it work, the best of both worlds (we’d have bitcoin the currency which is a better currency than Ether, and the smart contract environment of Ethereum). – Nick Szabo
Wednesday 17th February 2016
Ethereum can solve any problem a computer can solve: but with far greater reliability and security and far less performance and efficiency. – Nick Szabo
Saturday 13th March 2016
Ethereum Over $1 billion
A rise of 1550% in 100 days: Coinmarketcap.com/ethereum
Saturday 13th March 2016
ShapeShift Volumes Surge as Demand for Ethereum Explodes
ShapeShift grew 1,000% in 2015. It has already grown another 1,000% in the first 2 months of 2016. Thank you everyone! #Bitcoin #Ethereum – Erik Voorhees
Tuesday 29th March 2016
Counterparty Bringing Ethereum Smart Contracts to Bitcoin
Counterparty intends to bring Ethereum smart contracts to Bitcoin by leveraging the Ethereum Virtual Machine.
Counterparty noted that it spent the past year polishing this software on a test network, but that they are now ready to go live with Ethereum-style smart contract support on the main Bitcoin network.
The news immediately caused a sharp spike in the price of XCP, the token used within Counterparty’s system, seeing it rally more than 370% at its peak of 0.0095 BTC per token.
While we don’t know exactly when these new Counterparty features will drop onto the main Bitcoin network, it sounds like the bulk of the work is done, and Bitcoin smart contracts are ready for production. – Bitcoin Error Log
Monday 23rd May 2016
Ethereum market cap at a record high of $1.13 billion – about 1/6 of bitcoin’s $7 billion. – Jemima Kelly
Monday 23rd May 2016
The DAO: Largest Crowdfund in History
The DAO, short for The Distributed Autonomous Organization, is an entirely new way of organizing investment.
30 years ago, the concept of being able to communicate instantly over video with anyone around the world was unimaginable. Today, the same can be said about fully autonomous corporations, without any leadership, management or employees, being able to drive a return on investment for their stakeholders.
The DAO is a set of smart contracts that define a venture capital fund, which is directed by DAO Token Holders. This is similar to holding shares in a public company, but the fund itself is stateless, existing in all computers running Ethereum, having neither a physical address nor a board of directors.
Saturday 18th June 2016
$150mill Decentalized Autonomous Organization to Wind Down After Hack
- “Vitalik Buterin on brink of first bailout for DAOs” – The Times 17/Jun/2016 – LaurentMT
- If smart contracts are subject to post facto human interpretation of intent, they sound pretty much like regular old contracts. – Ben Davenport
- Writing secure smart contracts is closer to writing nuclear reactor code than loose web code. Solidity/EVM target the latter. – Emin Gun Sirer
- There’s a reason why bitcoin is conservative and focuses on doing one thing well.. Shit like this happens – Jus
Founders of the fund, DAO said Friday morning they have been forced to shut down the fund and plan for its unwinding.
DAO raised more than $150 million of Ethereum through the month, far more than its creators expected. That made it the top crowdfunding effort on record.
The attack spirited away roughly 3.6 million Ethereum coins, valued at around $55 million, from DAO to another account.
The attacker appeared to have exploited a loophole that essentially allowed a DAO stakeholder to create an identical fund and move money into it.
The DAO’s founders are planning to “fork” the code and effectively void the hacker’s transactions.
Investors seemed less concerned with the hack than with Ethereum’s decision to erase the fraudulent transactions.
One investor in the DAO, Menno Pietersen, said he opposed the rescue and called the incident a “horrible mess.” The DAO’s creators “messed up” and didn’t take the time to build their product correctly, he said.
He acknowledged that he himself didn’t vet the investment carefully enough, but said that as a backer of Ethereum, he was against any fix that would invalidate the goal of creating a decentralized platform. If trades can simply be erased, he asked, “what will they do next?”
“It was a risky investment,” he said. “You shouldn’t complain if you got burned.”
Another investor, Collin LaHay, called the idea of forking a “scary precedent.” – Paul Vigna
Saturday 2nd July 2016
Then and Now: The Big 4 Cryptocurrencies
May 27th 2014
July 1st 2016
The top 4 positions have remained quite stable. The only changes are that new entrant Ethereum has burst on the scene with a massive $1 billion market cap and Peercoin has collapsed.
Litecoin and Ripple have retained their top 4 positions. To have that kind of stability over 2 years is a good accomplishment in such a fast changing turbulent market.
Bitcoin Dominance Index:
Bitcoin Dominance Index May 2014
Bitcoin Market Cap = $7.3 billion
Altcoin Market Cap = $0.7 billion
Bitcoin Dominance Index = 91%
Bitcoin Dominance Index Today
Bitcoin Market Cap = $10.5 billion
Altcoin Market Cap = $2.2 billion
Bitcoin Dominance Index = 83%
Altcoins as a whole have had a good run (although the majority of that $1.5 billion increase in altcoin market cap is accounted for by Ethereum and the DAO which are facing existential threats after theevents of the last few weeks).
DIGITAL ASSET / PLATFORM COINS
NOTABLE ASSET / PLATFORM COINS
Nothing of Use Has Come From It
The whitepaper was published in January 2014, so we’re well into year 3 now and still nothing of use has come from it. Compare this to how much value bitcoin added in the real world at this stage. It just hasn’t happened with Ethereum.
There are big question marks over the blockchain’s integrity and immutability, and the project is open source so faces competition from Counterparty who are porting it (and also Rootstock, a sidechain which has plans for smart contracts on the bitcoin blockchain).
A $1 billion valuation is hard to justify, especially when considering that Counterparty is valued at around $7 million. It wouldn’t be a big surprise to see Ethereum’s market cap can crash 90 – 95% from here.
Complexity is the Enemy of Security
Some of Ethereum seems like needless re-engineering (like creating a new proof-of-work or a new currency). And in general, I suspect they’re trying to do too much– “complexity is the enemy of security”– and will end up either radically reducing the scope of what they’re trying to do or will get tired of playing whack-a-mole with security and DoS vulnerabilities. – Gavin Andresen
Ethereum seems like a broken project with many vulnerabilities.
Getting smart contracts functioning securely is going to be a multi-year endeavor. The race is long and there are many competitors. I wouldn’t be surprised if they have to rip out most of it, put it on pause and rebuild for a year or two, if that’s even possible.
Counterparty Adding Ethereum Functionality
A port of the Ethereum Virtual Machine, bringing full Ethereum functionality to bitcoin, is scheduled for August 2016.
It’s crazy how the Ethereum market cap is 150x higher than Counterparty’s. I expect this multiple to fall. There’s no sane reason why Ethereum should be worth 150x more than Counterparty. I trust the Counterparty platform to function better than Ethereum.
Despite the price disappointing since 2014 I still think Counterparty is the most interesting digital asset platform and has a bright future.
CONCLUSION FOR PLATFORM COINS
Ripple (Centralized. Working with banks)
Coins with Too Many Problems
Ethereum (Too complex and insecure)
Namecoin (Hasn’t functioned well or got anywhere after many years)
Thursday 18th August 2016
Researching altcoins & astonished at their idiocy. Ripple is even stupider than Ethereum, but Steem has got to be the stupidest of them all.
I challenge anyone to read the entire Steem whitepaper and not laugh out loud at the fantastic sophistry used to hide the scam behind it. – Saifedean Ammous
Wednesday 14th December 2016
Ethereum is getting slammed due to consensus issues, etc. Which is strange, cuz it’s been obvious since 2014 that it’d experience this.
Eth *should* have gotten crushed (far more than it did) immediately after it forked to bail out unscrupulous DAO investors.
To be clear, I think it’ll survive w/ non-trivial mcap; though funny that it’s this predictable stuff that’s killing confidence. – Dan McArdle