Blockchain inshorts #13
In short, we bring you what is the most interesting and important news in the blockchain world
We look at few common ideas that are widely mistaken in crypto
Tether FUD
Tether is a USD stable coin, meaning it should be backed b 1:1 with US Dollars. There are concerns about its backing. The reason that they are mistaken is because that there is a lack of transparency and communication from the concerned stakeholders. However, Tether's efforts to help answer some of the concerns and make uninformed people aware of them.
Tether's CTO explains the security process for creating or redeeming USDT.
A thread from a Quantitative trader working at Almaeda Research shared his use of Tether.
Sam, the founder of FTX Exchange and Almaeda Research, also chipped in to share his experience
Buyback and burn
The common idea is to buyback from the open market. The expectation is to buy back creates buying pressure in the market, leading to rising prices or a signal of confidence that the asset is undervalued. Somehow, due to the scarcity (rather the certainty of emission schedule of 21 million Bitcoin), it has become common to assume that the shortage helps create more value. The concept evolved from changing the perspective from demand to supply. Instead of increasing buyer demand, due to blockchain's programmable nature, reducing supply became a norm. Needless to say, there were calls to point out this error, and few projects have realized that burn doesn't help achieve its intended effect. That is partly due to the inherent bullish nature of humans.
To put the idea to rest, a modified model of buyback and build is proposed by yearn finance. Although not to say that it is a proven model, it focuses on giving importance to the most significant stakeholder in crypto - developers, and team.
Yearn team announces buyback and build
In other important updates,
Ethereum in 2020: the View from the Block Explorer
Etherscan, the favored Ethereum blockchain explorer, looks at the growth ETH ecosystem at the block level.
ETHGlobal conducted a survey of more than 700+ blockchain developers, and the results are insightful in understanding developer adoption.
A Safari Tour in Ethereum's Dark Forest
Adventures inside the forest of blockchain
Nexus Mutual launches insurance against centralized exchanges.
But, who will ensure the insurer?
Poolin, one of the largest Bitcoin mining pool, issues a hash rate token.
The token enables participation in both proof-of-work mining and yield farming, sharing part of mining profits with the staked users.
Andre shares a therapeutic post on building in defi.
Next time you hear money laundering using crypto, point them to this study by SWIFT
"Identified laundering cases through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods."
Until next time...