"I opened a new US bank account. In the 6 days that it took for my wire to transfer from my other US account to my new account.. my new account was debited $25.95 for being under the min balance to not be charged a fee... & another $34.00 "overdraft" fee. And yet crypto is THE scam?"
Lightning launched the first non-custodial iOS Lightning Wallet. This means you can essentially run a node (and hold your Lightning funds) on your phone. Before this launch, mobile Lightning wallets were the equivalent of holding a remote control and pointing it at your node.
⚡️ Price Action
Bitcoin passed $9500. According to our friends at Messari, Bitcoin dominance has just passed 61%.
The Bitcoin2019 conference is happening next week in San Francisco on the 25th-26th with a great lineup of speakers.
ETH holders can receive Edgeware tokens through a process known as Lockdrop. ETH holders can lock their ETH in a smart contract or just “signal” their interest in the Edgeware project to receive some EDG tokens.
The recent controversy around the lockdrop was caused by the Edgeware team changing the lockdrop rules just before launching which was viewed as a plot to enrich Parity and the W3F so they could do something with their frozen funds.
Though not the most technically fascinating project, Libra was the most heavily discussed topic this week. After a long period of speculation, Facebook finally revealed Libra project details and the first wallet for the project, Calibra. The announcement was accompanied by a white paper on the high-level vision of the project and a more technical Libra blockchain paper to detail the technical aspects of the project.
If Libra succeeds, it will ultimately replace state central banks with a corporate-backed global central bank. It's more competitive with Western Union than it is with bitcoin.
Libra's first victims will be weak sovereign state currencies that citizens will abandon in favor of the more robust and global Libra currency. As weaker currencies fall to Libra, stronger currencies could follow. This explains why France immediately called for a European action plan to understand the consequences of Libra. The French Finance minister even went on to state that “It is out of question’’ that Libra “become a sovereign currency, It can’t and it must not happen” in an interview on Europe 1 radio.
THOUGHT OF THE DAY
A new way to bootstrap: Incentivized testnets
For a while, new projects struggled with attracting enough people to test the project network before the mainnet launch.
The obvious benefit of testing before launch includes discovering bugs and unanticipated issues that could disrupt the main network launch. The less obvious benefit is giving users enough time to learn how to run the network software, create wallets, and transact on the network. So, when the network finally launches, early users aren't struggling with the learning curve and can immediately spike activity on the network -- this leads to a highly favorable signal of network liveliness to early adopters.
But for all its benefits, there is one glaring question: how do you incentivize users to participate in testnets in the first place? Why would someone spend time and effort to set up a node or mine/validate on a testnet if they are not earning anything? Testnet tokens have no value.
Sure, you can say it's the developing team’s responsibility to do the testing. But the truth is not everything can be tested without external participants. Especially for decentralized projects.
One strategy that's been gaining traction: providing financial incentives using “real” network coins. We recently saw the Cosmos Network do this with Game of Stakes (GoS). GoS was a series of incentivized testnets to test Cosmos validation rules. Participants earned real Atoms for participating in the testnet. GoS proved very successful in discovering critical consensus bugs that forced the network to a halt, testing governance system and ultimately the removal of a cartel that was formed on the testnet.
Following GoS, the concept was used again during Binance Chain and DEX testing. In preparation for the DEX launch, Binance launched a 2-week competition during March to incentivize testnet participation using real BNB tokens. The most recent example following the same trend is the Nervos Network launch of a PoW mining competition on the testnet where miners will be rewarded for real CKB tokens for participating in the competition.
The concept of incentivized testnets is a more reasonable and effective way to bootstrap new networks and protocols than alternatives like airdrops. Interestingly, it offers a mutual benefit for both the protocol and the interested users who want to earn the protocol tokens before the network launch without participating in an ICO/IEO.
In the future, we expect more protocols to follow the same incentive model.
Disclosure: Token Daily Capital and/or its partners may have exposure to some of the cryptocurrencies mentioned in this newsletter.