Governance, Governance, Governance

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Notable News


Crypto Non-Profits Are Flawed – Zcash Thinks It Can Change That

What's the Story?

  • Z-Cash is looking at revising its non-profit model
  • The model has fallen under attack recently
  • Scandals such as the Tezos's lawsuit has made investors rethink governance models

What do I think?

Z-Cash seems to be one of the better governance models in the space. Z-Cash didn't have any pre-mined ICO but instead had a genesis block similar to the Bitcoin launch. The most significant difference is that 20% of the coins created in the first four years are allocated to investors, developers, and the Z-Cash foundation. I don't see a massive problem with this. It allows Z-Cash to bootstrap its development without having to receive outside funding (even though Z-Cash raised outside capital). The issue is if that money is being appropriately spent. There was a recent dispute between the sole developer of Z-Cash's Window's wallet and Z-Cash. He claimed he hasn't been paid for months on his work and threatened to fork the network. He eventually received a donation from the community, and the dispute ended. This incident brings into question Z-Cash's model because if critical developers aren't being paid, is the money being appropriately allocated? I prefer a Z-Cash model where the founders are getting rich via a pre-mined ICO than a "founder's reward" which Z-Cash uses.


Commentary


State of Cryptocurrencies: Summer 2018

What do I think?

Adam Tache published an overview of all the major protocols and tokens in the ecosystem. It's an excellent overview for those not familiar with some of the up and coming protocols such as RChain and Mobilecoin. It's amazing how the space has evolved since Bitcoin launched in 2009. The only use case back then was a stateless currency. There are now many areas of focus including smart contracts, privacy coins, and stablecoins. For all the competition in the space, Bitcoin is still far and away the leader. I'd love to revisit this list in 10 years and see what protocols have succeeded.


Casa’s Privacy Model

What do I think?

Jameson Lopp wrote about Casa's privacy model. Casa is a company working on third-party custody solutions for cryptocurrency holders. I've been skeptical of third-party custody solutions because they defeat the decentralized nature of Bitcoin and other cryptocurrencies. If a third-partycontrols your private keys, then the state or a creditor can confiscate your cryptocurrency. Bitcoin is valuable because a person or group can't seize it. You are your own bank. If you delegate the banking aspect to someone else, does Bitcoin lose its value? Casa's model is laid out in the article. The real question isn't if Casa succeeds or any third party custodian, but if Bitcoin and other cryptocurrencies will sustain value by moving to a more centralized model. 

EDIT: Casa informed me that they are a non-custodial method for custody. Casa never has control of your private keys.


EOS ChainRift’s Stance on the Current Arbitration Process

What do I think?

EOS's launch has been a disaster. This is a fact, not an opinion. The blockchain had a variety of security flaws, multiple accounts were arbitrarily frozen, and the network temporarily froze. EOS's unique features was a new form of governance. To give EOS the benefit of the doubt, it's too early to know if this form of blockchain governance will work, but it's off to a rocky start. Chain Rift, an EOS Block Producer, vehemently disagreed with EOS's arbitrary stance around arbitration. EOS is suggesting that Dan Larimer, EOS's founder, is moving away from the transparency that EOS was founded upon. Arbitrarily banning EOS accounts with no explanation is a bad look for EOS. If EOS can't even get it's arbitration process right, how can you expect it to get other aspects of governance right? 


Other Interesting Things


Anthony Di Iorio lays out his plans to spend his multi-million dollar fortune, China is ranking cryptocurrencies, A Bitcoin Hodler expands on his investment thesis, ICOs have a bunch of security flaws, Blockchain is the new NoSQL.