“The stock-to-flow approach originating in commodity-market analysis serves to quantify the ‘hardness’ of an asset. Applied to Bitcoin, an unusually strong correlation emerges between the market value of this cryptocurrency and the ratio between existing stockpiles of Bitcoin (‘stock’) and new supply (‘flow’),” they say.
Das Bundeskabinett hat heute (Anm. 18.09.2019) die Blockchain-Strategie verabschiedet. Das Bundesministerium für Wirtschaft und Energie (BMWi) und das Bundesministerium der Finanzen (BMF) haben sie unter Einbeziehung der übrigen Ressorts erarbeitet.
Bundeswirtschaftsminister Peter Altmaier: „Die Potenziale der noch jungen Blockchain-Technologie sind hoch. Deutschland ist dabei weltweit unter den führenden Standorten. Mit der Blockchain-Strategie wollen wir dazu beitragen, diesen Vorsprung zu halten und auszubauen. Ein Fokus liegt dabei im Energiebereich. Hier können wir doppelt punkten, indem wir in Pilotprojekten die Chancen der Blockchain-Technologie nutzen und gleichzeitig die Digitalisierung der Energiewende vorantreiben.“ Weiterlesen
https://kinematec.de/wp-content/uploads/2019/09/bmwi-blockchain.png10141249christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-09-18 08:59:462019-09-20 09:03:21Blockchain-Strategie der Bundesregierung
You’ve probably heard of Compound. They built compound.finance on Ethereum which allows you to lend and earn interest on your ETH, DAI, USDC, and several other ERC20s.
Today, the interest rate offered to DAI lenders is 10%, which is high enough to turn EthHeads’ heads (see cover photo).
As the CEO of SpankChain, it’s my job to manage the company reserves, which also includes nearly half a million DAI. At 10% annual interest, that’s ~$4,000 per month that we’re leaving on the table by not moving our DAI into Compound. That’s quite the opportunity cost. But the thing to remember when investing is that there is no free lunch. All investments have their risks and lending on Compound is no exception.
I spent some time over the last month evaluating several categories of risk when lending on Compound:
Contract Security Risks
Centralized Points of Failure
Bank Run Risk
I break my investigation down by category below, but the most important things to know are:
The smart contract security seems legit.
Compound is a CUSTODIAL system, all lending pools can be trivially drained if their admin private key is compromised.
When you lend on Compound, you are NOT guaranteed to be able to withdraw whenever you want. If you try to withdraw your funds and all the money is locked up in outstanding loans, your withdrawal transaction will fail.
Compound has been audited by several reputable smart contract security firms.
In addition, Compound was offering a private bug bounty of up to $250,000 for critical vulnerabilities (defined as 1% of funds stolen or 10% frozen), and to my knowledge no independent security researchers have been able to claim the bounty.
The contracts have also held $20M+ for over 6 months, $50M+ for over 2 months, and currently hold $100M+. For me personally, the most important metric of contract security is total funds held in contract * time held in contract, and Compound has been secure with quite a large public bounty thus far.
Based on the above factors, I presently believe that the Compound smart contracts are secure.
Centralized Points of Failure
I’m not a smart contract security expert myself, so I enlisted the assistance of the one and only samczsunwho famously found a critical bug in the 0x contracts (despite multiple audits from top firms) and was paid $100,000 for it. He had the following to report about centralized points of failure in Compound (emphasis mine):
https://kinematec.de/wp-content/uploads/2019/09/DAI-ETH-heads.png545821christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-09-13 11:13:222019-09-20 09:03:58What You Should Know Before Putting Half a Million DAI in Compound
OpenLaw will be launching the first limited liability for-profit DAO, named the LAO. The LAO will enable members to invest in Ethereum new ventures and generate a profit. A new era of DAOs is beginning.
The LAO: A For-Profit, Limited Liability Autonomous Organization
Since first proposed in 2013, the notion of decentralized autonomous organizations (DAOs) has animated the dreams of blockchain developers. For many, these Internet-native organizations represent the next step in the evolution of social and economic coordination, with blockchain technology and smart contracts streamlining voting, decision making, and the allocation of digital assets.
The notion of a DAO did not emerge in a vacuum. Instead, these organizations build on a long lineage of technical and legal innovation. The Romans devised a variety of commercial entities, such as the societas peculium and societas publicanorum, that enabled parties to share in an enterprise’s profits and losses while also providing limited liability. During the Middle Ages, Italians pioneered early versions of a limited partnership to finance maritime trade. Joint-stock companies emerged in England and the Netherlands in the 1600s, providing organizations state-granted monopolies to engage in productive commercial enterprises. The modern corporation took root in the United States in 1811, when New York granted private parties the power to form their own corporate structures without an extensive approval process. Weiterlesen
This year, Ethereum has undergone a privacy renaissance of sorts. Encouraged by prominent members of the community, researchers, programmers, and DAO funders have collaborated to accelerate the ideation and implementation of privacy solutions, particularly those which employ zero-knowledge proofs. We are now at a stage where a key privacy building block is emerging from research and entering production: Semaphore, a means for anonymous signalling.
Semaphore is the basis of an ETH and ERC20 token mixer named MicroMix. In the near future, it can be used for other privacy-enhancing applications such as anonymous login, anonymous DAOs, anonymous voting, and journalism.
This technical blog post will explain how Semaphore and MicroMix work, and how Semaphore enables MicroMix to provide users with transaction privacy in a noncustodial manner. It will also describe its performance and tradeoffs, and finally outline how Semaphore can enable other zero-knowledge applications which would be otherwise impractical.
Readers should understand how Ethereum smart contracts work and some basic cryptography, but do not need to be familiar with zero-knowledge proofs. Weiterlesen
https://kinematec.de/wp-content/uploads/2019/09/to-mixers-and-beyond.png10991318christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-09-03 08:11:142019-09-20 09:04:35Semaphore, a privacy gadget built on Ethereum
Wouldn’t it be amazing if we didn’t have to waste so much precious space on our expensive and sensitive SSDs to run an Ethereum node, and could rather move at least some of the data onto a cheap and durable HDD?
With the v1.9.0 release, Geth separated its database into two parts (done by Péter Szilágyi, Martin Holst Swende and Gary Rong):
Recent blocks, all state and accelerations structures are kept in a fast key-value store (LevelDB) as until now. This is meant to be run on top of an SSD as both disk IO performance is crucial.
Blocks and receipts that are older than a cutoff threshold (3 epochs) are moved out of LevelDB into a custom freezer database, that is backed by a handful of append-only flat files. Since the node rarely needs to read these data, and only ever appends to them, an HDD should be more than suitable to cover it.
A fresh fast sync at block 7.77M placed 79GB of data into the freezer and 60GB of data into LevelDB. Weiterlesen
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Protocols like Compound Finance and DYDX are arguably the most compelling reasons why you’d want to build an app on Ethereum. Unfortunately the entire web3 stack is surrounded by a cloud of wonky terminology and technical barriers. This jargon minefield makes it next to impossible for the average Jane to get something up and running.
I’ve been working on an simple MVP Portis plugin that allows anyone to utilize these and other protocols with no programming knowledge. To do this I leveraged a platform called Bubble.is, a visual programming language with powerful workflow automation tools.
The first step in making this possible is integrating a wallet provider. I’m a big fan of Portis and integrating their wallet has proven to be very easy. All this took was a few evenings and emails to the team to talk about problems I ran into. This work has resulted in the first tool which lets a non developer create a Dapp, all in under 2 minutes. Weiterlesen
https://kinematec.de/wp-content/uploads/2019/09/build-a-no-code-app.png13312769christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-08-26 08:00:392019-09-20 09:05:00Build a No-Code Ethereum app in under 2 minutes
https://kinematec.de/wp-content/uploads/2019/09/tools-for-ethereum.png13232636christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-08-13 07:48:122019-09-20 09:05:1453 Tools You Need To Build Applications On Ethereum
Today OpenLaw is releasing its second vertical OpenLaw Finance. With OpenLaw Finance creating legally compliant tokenized securities, fixed income products, tokenized real estate, and smart derivatives can be as easy as filling out a simple form. The future of decentralized finance is coming into focus powered by OpenLaw.
Ethereum holds out the potential to serve as the commercial operating system for the globe. Launched only five years ago, Ethereum is rapidly emerging as the spine for a streamlined financial system where existing financial products can be structured and administered more efficiently. Despite the downturn in prices, Ethereum’s growth has accelerated over the past two years. We’ve seen the birth of stable coins, like DAI, and the threads of more advanced financial products like those provided by Dharma and Compound. Ethereum-based trading platforms are beginning to mature, like 0x and Uniswap, creating composable financial legal blocks that enable assets to flow more seamlessly between parties. And decentralized oracles like Chainlink are moving to mainnet, holding out the hope of inputting real-time data into commercial relationships and creating new, more efficient means of commercial transactions.
Traditional finance, of course, has noticed. An increasing number of banks and other “fintech” startups are exploring the use of blockchain technology through the issuance of their own stablecoins and a host of pilot programs ranging from J.P. Morgan’s stablecoin to SWIFT’s instant GPI payments.
The blockchain-world and traditional finance are on a collision course with new tools and approaches rapidly painting a picture of what a more democratized and streamlined financial system could look like — one that is more efficient, transparent, and resilient. Weiterlesen
https://kinematec.de/wp-content/uploads/2019/08/bfbfdbd.png336762christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-08-01 09:02:372019-09-20 09:05:27Build an Open Investment Bank Using OpenLaw
1. It needs 2 million deposited Ether to start
We covered previously how a validator would need to submit 32 ether to a deposit contract to join the staking system in Ethereum 2. What isn’t as widely known is that we need 65536 validators for the new chain to start – roughly 2 million ether (65536 validators). That’s exactly 64 validators per planned shard in the system – too little at first (see numbers below).
https://kinematec.de/wp-content/uploads/2019/07/undraw_ethereum_desire_wy1b.png9021313christianhttps://kinematec.de/wp-content/uploads/2016/09/kinematec_logo-300x52.pngchristian2019-07-19 08:56:072019-07-19 08:58:389 Things You Didn't Know About Ethereum 2.0