Crypto-Powered - The Most Promising Use-Cases of Decentralized Finance (DeFi)
A whirlwind tour of Defi, paying close attention to protocols that we’re leveraging atGenesis Block. https://reddit.com/link/hrrt21/video/cvjh5rrh12b51/player This is the third post ofCrypto-Powered— a new series that examines what it means forGenesis Blockto be a digital bank that’s powered by crypto, blockchain, and decentralized protocols. Last week we explored how building on legacy finance is a fool’s errand. The future of money belongs to those who build with crypto and blockchain at their core. We also started down the crypto rabbit hole, introducing Bitcoin, Ethereum, and DeFi (decentralized finance). That post is required reading if you hope to glean any value from the rest of this series. 97% of all activity on Ethereum in the last quarter has been DeFi-related. The total value sitting inside DeFi protocols is roughly $2B — double what it was a month ago. The explosive growth cannot be ignored. All signs suggest that Ethereum & DeFi are a Match Made in Heaven, and both on their way to finding strong product/market fit. So in this post, we’re doing a whirlwind tour of DeFi. We look at specific examples and use-cases already in the wild and seeing strong growth. And we pay close attention to protocols that Genesis Block is integrating with. Alright, let’s dive in.
Stablecoins are exactly what they sound like: cryptocurrencies that are stable. They are not meant to be volatile (like Bitcoin). These assets attempt to peg their price to some external reference (eg. USD or Gold). A non-volatile crypto asset can be incredibly useful for things like merchant payments, cross-border transfers, or storing wealth — becoming your own bank but without the stress of constant price volatility. There are major governments and central banks that are experimenting with or soon launching their own stablecoins like China with their digital yuan and the US Federal Reserve with their digital dollar. There are also major corporations working in this area like JP Morgan with their JPM Coin, and of course Facebook with their Libra Project.
Stablecoin activity has grown 800% in the last year, with $290B of transaction volume (funds moving on-chain).
USDC($1B): This is the most reputable USD-backed stablecoin, at least in the West. It was created by Coinbase & Circle, both well-regarded crypto companies. They’ve been very open and transparent with their audits and bank records.
DAI ($189M): This is backed by other crypto assets — not USD in a bank account. This was arguably the first true DeFi protocol. The big benefit is that it’s more decentralized — it’s not controlled by any single organization. The downside is that the assets backing it can be volatile crypto assets (though it has mechanisms in place to mitigate that risk).
Three of the top five DeFi protocols relate to lending & borrowing. These popular lending protocols look very similar to traditional money markets. Users who want to earn interest/yield can deposit (lend) their funds into a pool of liquidity. Because it behaves similarly to traditional money markets, their funds are not locked, they can withdraw at any time. It’s highly liquid. Borrowers can tap into this pool of liquidity and take out loans. Interest rates depend on the utilization rate of the pool — how much of the deposits in the pool have already been borrowed. Supply & demand. Thus, interest rates are variable and borrowers can pay their loans back at any time.
So, who decides how much a borrower can take? What’s the process like? Are there credit checks? How is credit-worthiness determined?
These protocols are decentralized, borderless, permissionless. The people participating in these markets are from all over the world. There is no simple way to verify identity or check credit history. So none of that happens. Credit-worthiness is determined simply by how much crypto collateral the borrower puts into the protocol. For example, if a user wants to borrow $5k of USDC, then they’ll need to deposit $10k of BTC or ETH. The exact amount of collateral depends on the rules of the protocol — usually the more liquid the collateral asset, the more borrowing power the user can receive. The most prominent lending protocols include Compound, Aave, Maker, and Atomic Loans. Recently, Compound has seen meteoric growth with the introduction of their COMP token — a token used to incentivize and reward participants of the protocol. There’s almost $1B in outstanding debt in the Compound protocol. Mainframe is also working on an exciting protocol in this area and the latest iteration of their white paper should be coming out soon.
There is very little economic risk to these protocols because all loans are overcollateralized.
Buying, selling, and trading crypto assets is certainly one form of investing (though not for the faint of heart). But there are now DeFi protocols to facilitate making and managing traditional-style investments. Through DeFi, you can invest in Gold. You can invest in stocks like Amazon and Apple. You can short Tesla. You can access the S&P 500. This is done through crypto-based synthetics — which gives users exposure to assets without needing to hold or own the underlying asset. This is all possible with protocols like UMA, Synthetix, or Market protocol. Maybe your style of investing is more passive. With PoolTogether , you can participate in a no-loss lottery. Maybe you’re an advanced trader and want to trade options or futures. You can do that with DeFi protocols like Convexity, Futureswap, and dYdX. Maybe you live on the wild side and trade on margin or leverage, you can do that with protocols like Fulcrum, Nuo, and DDEX. Or maybe you’re a degenerate gambler and want to bet against Trump in the upcoming election, you can do that on Augur. And there are plenty of DeFi protocols to help with crypto investing. You could use Set Protocol if you need automated trading strategies. You could use Melonport if you’re an asset manager. You could use Balancer to automatically rebalance your portfolio. With as little as $1, people all over the world can have access to the same investment opportunities and tools that used to be reserved for only the wealthy, or those lucky enough to be born in the right country.
You can start to imagine how services like Etrade, TD Ameritrade, Schwab, and even Robinhood could be massively disrupted by a crypto-native company that builds with these types of protocols at their foundation.
As mentioned in our previous post, there are near-infinite applications one can build on Ethereum. As a result, sometimes the code doesn’t work as expected. Bugs get through, it breaks. We’re still early in our industry. The tools, frameworks, and best practices are all still being established. Things can go wrong. Sometimes the application just gets in a weird or bad state where funds can’t be recovered — like with what happened with Parity where $280M got frozen (yes, I lost some money in that). Sometimes, there are hackers who discover a vulnerability in the code and maliciously steal funds — like how dForce lost $25M a few months ago, or how The DAO lost $50M a few years ago. And sometimes the system works as designed, but the economic model behind it is flawed, so a clever user takes advantage of the system— like what recently happened with Balancer where they lost $500k. There are a lot of risks when interacting with smart contracts and decentralized applications — especially for ones that haven’t stood the test of time. This is why insurance is such an important development in DeFi.
Insurance will be an essential component in helping this technology reach the masses.
Decentralized Exchanges (DEX) were one of the first and most developed categories in DeFi. A DEX allows a user to easily exchange one crypto asset for another crypto asset — but without needing to sign up for an account, verify identity, etc. It’s all via decentralized protocols. Within the first 5 months of 2020, the top 7 DEX already achieved the 2019 trading volume. That was $2.5B. DeFi is fueling a lot of this growth. https://preview.redd.it/1dwvq4e022b51.png?width=700&format=png&auto=webp&s=97a3d756f60239cd147031eb95fc2a981db55943 There are many different flavors of DEX. Some of the early ones included 0x, IDEX, and EtherDelta — all of which had a traditional order book model where buyers are matched with sellers. Another flavor is the pooled liquidity approach where the price is determined algorithmically based on how much liquidity there is and how much the user wants to buy. This is known as an AMM (Automated Market Maker) — Uniswap and Bancor were early leaders here. Though lately, Balancer has seen incredible growth due mostly to their strong incentives for participation — similar to Compound. There are some DEXs that are more specialized — for example, Curve and mStable focus mostly only stablecoins. Because of the proliferation of these decentralized exchanges, there are now aggregators that combine and connect the liquidity of many sources. Those include Kyber, Totle, 1Inch, and Dex.ag.
These decentralized exchanges are becoming more and more connected to DeFi because they provide an opportunity for yield and earning interest.
As it relates to making payments, much of the world is still stuck on plastic cards. We’re grateful to partner with Visa and launch the Genesis Block debit card… but we still don’t believe that's the future of payments. We see that as an important bridge between the past (legacy finance) and the future (crypto). Our first post in this series shared more on why legacy finance is broken. We talked about the countless unnecessary middle-men on every card swipe (merchant, acquiring bank, processor, card network, issuing bank). We talked about the slow settlement times. The future of payments will be much better. Yes, it’ll be from a mobile phone and the user experience will be similar to ApplePay (NFC) or WePay (QR Code).
But more importantly, the underlying assets being moved/exchanged will all be crypto — digital, permissionless, and open source.
Someone making a payment at the grocery store check-out line will be able to open up Genesis Block, use contactless tech or scan a QR code, and instantly pay for their goods. All using crypto. Likely a stablecoin. Settlement will be instant. All the middlemen getting their pound of flesh will be disintermediated. The merchant can make more and the user can spend less. Blockchain FTW! Now let’s talk about a few projects working in this area. The xDai Burner Wallet experience was incredible at the ETHDenver event a few years ago, but that speed came at the expense of full decentralization (can it be censored or shut down?). Of course, Facebook’s Libra wants to become the new standard for global payments, but many are afraid to give Facebook that much control (newsflash: it isn’t very decentralized). Bitcoin is decentralized… but it’s slow and volatile. There are strong projects like Lightning Network (Zap example) that are still trying to make it happen. Projects like Connext and OmiseGo are trying to help bring payments to Ethereum. The Flexa project is leveraging the gift card rails, which is a nice hack to leverage existing pipes. And if ETH 2.0 is as fast as they say it will be, then the future of payments could just be a stablecoin like DAI (a token on Ethereum). In a way, being able to spend crypto on daily expenses is the holy grail of use-cases. It’s still early. It hasn’t yet been solved. But once we achieve this, then we can ultimately and finally say goodbye to the legacy banking & finance world. Employees can be paid in crypto. Employees can spend in crypto. It changes everything.
Legacy finance is hanging on by a thread, and it’s this use-case that they are still clinging to. Once solved, DeFi domination will be complete.
At Genesis Block, we’re excited to leverage these protocols and take this incredible technology to the world. Many of these protocols are already deeply integrated with our product. In fact, many are essential. The masses won’t know (or care about) what Tether, USDC, or DAI is. They think in dollars, euros, pounds and pesos. So while the user sees their local currency in the app, the underlying technology is all leveraging stablecoins. It’s all on “crypto rails.” https://preview.redd.it/jajzttr622b51.png?width=700&format=png&auto=webp&s=fcf55cea1216a1d2fcc3bf327858b009965f9bf8 When users deposit assets into their Genesis Block account, they expect to earn interest. They expect that money to grow. We leverage many of these low-risk lending/exchange DeFi protocols. We lend into decentralized money markets like Compound — where all loans are overcollateralized. Or we supply liquidity to AMM exchanges like Balancer. This allows us to earn interest and generate yield for our depositors. We’re the experts so our users don’t need to be. We haven’t yet integrated with any of the insurance or investment protocols — but we certainly plan on it. Our infrastructure is built with blockchain technology at the heart and our system is extensible — we’re ready to add assets and protocols when we feel they are ready, safe, secure, and stable. Many of these protocols are still in the experimental phase. It’s still early.
At Genesis Block we’re excited to continue to be at the frontlines of this incredible, innovative, technological revolution called DeFi.
--- None of these powerful DeFi protocols will be replacing Robinhood, SoFi, or Venmo anytime soon. They never will. They aren’t meant to! We’ve discussed this before, these are low-level protocols that need killer applications, like Genesis Block. So now that we’ve gone a little deeper down the rabbit hole and we’ve done this whirlwind tour of DeFi, the natural next question is: why?
Why does any of it matter?
Most of these financial services that DeFi offers already exist in the real world. So why does it need to be on a blockchain? Why does it need to be decentralized? What new value is unlocked? Next post, we answer these important questions. To look at more projects in DeFi, check outDeFi Prime,DeFi Pulse, orConsensys. ------ Other Ways to Consume Today's Episode:
AMA Recap of CEO and Co-founder of Chromia, Henrik Hjelte in the @binancenigeria Telegram group on 03/05/2020.
Hydro AMA Q&A Roundup with BitcoinMarkets (Slack), 15 June 2018
I've taken the liberty of rounding up all the questions and answers provided from Hydro's most recent AMA hosted with BitcoinMarkets incase you missed it. Enjoy! Hydro Q&A’s Q (knonsu): How does Snowflake relate to other identity protocols out there like Civic and uPort ? A.1 (Anurag): We see snowflake as existing a layer below these types of projects. Even without blockchain, identity is a broad term. Different people around the world have different forms of identity (state ID, country ID, social media IDs, etc). Civic, uPort, and other blockchain projects help to build specific types of an on-chain identity for a user; however those IDs are meaningful in different ways to different observers. For instance, imagine that a government or business builds a system that accepts Civic as a form of identity while another government/business only recognizes uPort identities. On top of this, certain systems only care about information tied to a user’s social media profile. A user can maintain one standard Snowflake as a base layer and set each of these different forms of identity as a resolver. Snowflake eliminates the need for global unanimous adoption of a singular identity standard and rather allows systems to build business logic off of identity standards they themselves recognize. Follow up Q (knonsu): thats cool. so its totally depends on the person/ institute utilizing it . One problem I found is how easy its to create fake identities (in their basic system). A.2 (Anurag): Yup! So people can conduct off-chain verifications to prove that you own a snowflake, and then tie an on-chain verification to your Snowflake. This links real-world KYC to your on-chain ID, so sure you could mint another snowflake, but that same party won't validate it again for you. Anyone who trusts that party would be able to accept their validations, and people who don't trust that party can rely on a different validator they do trust. — Q (kat): How big is the team working specifically on Hydro products? Can we get a numbers breakdown of engineers, biz dev, etc? Do you have plans to scale this team as the Hydro project develops? A.1 (Andy): Our Hydro team is 8 people. Devlopers (Myself and Noah) Product (Anurag and Shane) Community (Nahom) Founders (Mike and Matt) Partnerships/BizDev (Gunjan) The nice thing about Hydrogen though is we have a team of 30 people who we can leverage for different things. For example, Noah and I do not build mobile apps, but we have a front end team that is well versed in mobile app development. So while they are not directly on the Hydro team they do have a direct impact on Hydro. Hydrogen as a company is working to grow pretty rapidly. As we grow we will be filling out more positions in both blockchain and non-blockchain rolls. A.2 (Anurag): To add to Andy's answer - pretty much everyone working for Hydrogen helps out with Hydro in some way, whether via design, front-end development, API support, business discussion, etc. Here's our full team: https://www.hydrogenplatform.com/about — Q (rocket man): So in the age of ICOs, what motivated your team to not pursue that funding model and instead have a token distribution for developers? A (Andy): This was something that we spent a very long time considering and discussing. We spent a lot of resources (time, money & energy) trying to find the best solution for us going forward. When it was all said and done, we decided on an airdrop because of two main things, getting the token into the hands of people who will actually use it and regulatory concerns. We feel as though our distribution was the fairest approach that allowed for people with actual interest in the Hydro community to get involved. Overall, we have been very pleased with the level of community engagement from people who are interested in the utility of the Hydro token and we feel that a lot of this can be credited to our distribution strategy. — Q (matheussiq8): How hydro tokens will be used is still vague in the Snowflake whitepaper draft. Would the amount required to hold depend on the volume of API calls or some other parameter? For example, if I decide to implement raindrop and later snowflake in my small webshop would I need to hold the same amount of tokens as Binance (if they ever implement it of course…)? A (Noah): as always, the permissionlessness of public blockchains is a double-edged sword. smart contracts partially solve the problem by letting us enforce certain things on-chain (minimum token balances, signature validity, etc.), but there are limits. so, re. your specific question: in raindrop we do not vary the staking requirement across users, because that would necessarily involve value judgements we are not comfortable making as a centralized entity. however, there are two types of staking required for raindrop:
“institutional staking” requires entities who wish to sign up raindrop users *on their behalf* (i.e. passing new users’ addresses to the smart contract as parameters rather than new users transacting directly from their accounts) to stake a significant amount of hydro. these are the players we want to ensure are acting in the best interests of the community. in this model, hydro is simply one of many institutional stakers (where we sign up users on our kickass mobile app, which will be out soon).
“user staking” requires individuals who wish to sign up for raindrop on their own, i.e. transact directly with the smart contract, are able to do so by staking a much smaller amount of hydro.
What this all means for you, as a potential customer of our API, is that you don’t actually have to worry about the staking requirement or signing up users at all, and can simply use our API in conjunction with the Hydro app. Looking ahead to Snowflake, we have big plans to integrate increasing sophisticated uses of the token into the product. to some extent these are still up in the air, but rest assured that we are very focused on building a strong tokenomics structure. At a high level, the core token mechanism for snowflake will involve depositing tokens into the snowflake smart contract. These deposits will allow native staking/payment/incentive functionality denominated in hydro, without the hassle and worry of using ether with every call. — Q (Hodlall): When is raindrop Android app is releasing A (Andy): It is currently under development. We have a bunch of android phones with different OS on the way. It is hard to give a set date as we don't know what unforeseen issues could come up during the process though. All I can say is it is literally all that our mobile development team is working on — Q (Jeff_We_Cannafi): To piggyback on matheussiq8’s question, how do these identity tokens compare to existing forms of identity authentication, and do you anticipate the tokens themselves will be traded on exchanges? A (Andy): In my opinion, the main difference between what we are working towards and others like civic and uport is the scope of what we are aiming to do. We understand the value of having KYC on the blockchain and "One click signup", but really I think blockchain identity can be so much more than that. We are aiming to create a completely extendable and modular protocol which will allow for people to link anything they desire to their blockchain identity. Other protocols can tend to lean towards centralization (more a fault of current KYC procedures than the projects themselves) and we feel like this doesn't have to be the case. At least for now, something like KYC needs to have central authorities to verify user information, but why can't I also link my crypto kitties to my blockchain id or my linkedin profile to my blockchain id? Overall, what we are trying to build will easily allow for other blockchain developers to create robust identity solutions for whatever application they feel fit with Snowflake being at the core of that. We feel that this is crucial to eventually creating a completely open and decentralized identity system. Anyone can join and anyone can add what THEY consider to be an identity, but I only have to accept what I consider to be an identity. As far as trading, Snowflake Identity tokens will never be tradable. We feel that you identity should always be linked to you. This would be a dangerous road to a very easy black market for people's identities — Q (Jrock): What do you find the hardest part of pitching icos to regular companies? Also what do you think needs to happen for widespread crypto adoption? A (Shane): If you mean pitching Hydro to regular companies (we're not an ICO :stuck_out_tongue:), I would say the hardest part is getting the larger companies to move faster than a snail's pace. There are too many chefs in the kitchen and sometimes there is a lack of top-down strategy on blockchain, and it leaves large enterprises paralyzed sometimes. We try to resolve this by pitching how easy Hydro is to use, and how it connects to our broader Hydrogen ecosystem which can add value in a lot of places. In my opinion, widespread crypto adoption is going to be dependent on how parallelization plays out. If crypto's only option is to create a new parallel economy, widespread adoption is going to be slow and arduous and will take decades. However, if blockchain is able to be infused or layered on some of the current systems we have in place, the adoption will be much faster and broader. Ultimately this comes down to the usage of private vs public chains - the more private and centralized chains that get implemented, the farther the mainstream adoption will get pushed out. — Q (Luke): One aspect of Hydro that is beginning to really intrigue me are the potential use cases and dapps that can be built by external developers ontop of the Hydro protocol layers for each phase.
Having held various dev meetups and networking at various conferences, how are you finding the process of attracting developers to start building dapps and products in your ecosystem?
I understand the HCDP is getting updated with various new rules and bounties for dapps to be built, have you approached any developers yet with this new offer, and if so, how has the reception been?
How else do you intend to attract developers towards building on the Hydro protocols?
Through our events, we're mainly focused on helping expand the blockchain-focused developer community. We help give exposure to projects we find to be doing neat, innovative work in the space and keep ongoing dialogue with these communities.
In particular, to provide impetus to developers in the Hydro ecosystem, we've established the HCDP. The new process will involve putting out specific task requests. In the next week or so we'll have published specifications for dApps that can be built on top of Snowflake. We ourselves will not be building these dApps (they have nothing to do with Hydrogen's space as a company). This helps the ecosystem expand outside of Hydrogen-specific use-cases.
^^Through the above process to get them started. Eventually, we want the Hydro development process to be community-driven, so people are building on Hydro because it benefits their own programs and applications.
— Q (elmer_FUD): Hey Hydro Team! Here's a few question I've got for you after checking out the Raindrop and Snowflake whitepapers: How has your experience working in the Ethereum ecosystem been so far? While you are currently focused on the financial sector, would you consider actively marketing to other sectors such as healthcare and education in the future? It seems like both Raindrop and Snowflake would be useful in any environment that processes or stores sensitive data. Do you have plans to release official Raindrop SDK packages in other languages in the future? A bit more of a specific question: Raindrop is looks like a great product to use in a PCI-DSS environment - do you have thoughts on whether or not it the product is ready for primetime and do you think the industry standards and government regulation is prepared to handle these kinds of systems? A (Andy): Thanks for the questions! I'm gonna answer each in a separate response in this thread Overall it has been pretty solid. There is still a ton of room for growth in terms of documentation and stuff like that, but it is miles ahead of basically every other blockchain platform I have worked with. By far the biggest pain has been handling gas costs when considering the user experience. When trying to build actual products that people will want to use we feel that making it user friendly is something that many blockchain projects have not focused on nearly enough. Yeah certainly. We focus on fintech as that is where the rest of our companies APIs focus and that is where we have the most connections, but much of what we are building is much further reaching than that. Just as far as authentication goes, it really can apply to any major field and we intend to market it as such. We currently have Python and JS SDKs and have had a few java ones submitted through our community dev program. We have been revamping that program, but I anticipate we will be putting up more bounties for most major languages. I have considered making a few more myself, but we feel that they could be better suited as community projects. I completely agree. Raindrop and blockchain authentication when handling anything around payments is a great application. I think the biggest thing is actually convincing regulatory bodies that the protocols we have build are secure (since many can still be scared of blockchain). I definitely see this as a direct use case though — Q.1 (khonsu): What kind of banking relations do you have as a company, do they (banks) understand what you are trying to do ? Any VCs approached you for funding ? explain your business model. A.1 (Shane): Hydrogen has existed since 2009 in the form of Hedgeable. Hedgeable is a consumer-facing online investing app, and the tech behind it eventually spawned the Hydrogen tech platform. The story of how the transition happened goes essentially like this: (1) Hedgeable was disrupting banks & investing firms, (2) banks & investing firms started contacting us and seeing if we would help them digitize & automate their own businesses, (3) we started packaging up our tech and selling it to the banks. There was so much demand for this from financial institutions that we spun out a new company (Hydrogen). So to get back to your original question: we have some long-standing relationships in the banking & finance world, and to this day we have inbound leads from that space coming in every week. The key thing to keep in mind is that these institutions move extremely slowly, but they do understand the core value prop of our platform. Many of these firms are still in the midst of basic digitization efforts (i.e. moving from really slow offline processes to simple digital infrastructure), and that is the primary thing we are helping them with in early stages. But they are also keen on blockchain tech and they will naturally turn to us for that once they reach that point. We do have a few relationships with big financial companies in which Hydro/blockchain are already part of the discussion. We have revenue and don't need to rely on VCs. It is our general philosophy that building a business sustainably with actual clients and revenue is a good approach, but we would consider working with the right VC if that came to be and we wanted to scale more quickly. Right now, that is not an immediate concern for us. Our business model is in charging developers and enterprises to access the Hydrogen technology platform, which currently consists of products like Atom, Ion, and Hydro. Developers pay a per-user fee to hit our core APIs, while large enterprises negotiate custom (usually multi-year) contracts with us that typically include recurring revenue. Hydro, specifically, is being offered for free right now, as we attempt to gain adoption. But it is important to note that Hydro is just one piece of our ecosystem. Q.2 (Joleen): When you say fee - is this fee HYDRO? And when do you envisage HYDRO to no longer be offered FOC? A**.2 (Shane):** Sorry if it wasn't clear, I meant free to use our Hydro tech/APIs. The usage of HYDRO tokens within that is a separate issue - they still need to have HYDRO and we do not give it away for free to clients — Q (guacam0le): Adoption of an identity management solution (etc) would potentially involve a lot of identities. Further, scalability is a hot topic w/ blockchain. Is this a potential bottleneck? What is or might be done to address such? Tackling a competitor like Google or Authy's 2FA is no small feat. Also, not everyone is yet to embrace blockchain-based solutions. Have you found it difficult to interface with enterprises & get them excited about the idea of an overhaul? A (Anurag): nowflake is designed to be relatively low-load on the blockchain. A user needs to conduct a single transaction to “mint” their Snowflake. Once this is complete, they would need to complete one-time transactions to set each of their different forms of identities as resolvers as needed. A Snowflake is designed to be built out via resolvers over the duration of a user’s lifetime, so there’s never a need for heavy, frequent transactional capability. Similarly, smart contracts simply need to be set as resolvers by users; they do not themselves transact. Network scalability improvements will increase the range of use-cases for smart contracts that can be tied to Snowflake, but they aren’t a necessary prerequisite to some important early use-cases such as KYC platforms, and a few basic user-interaction platforms. As far as competition, we feel that current adoption of 2FA is, in general far short of where it should be, and any 2FA is generally better than none. Many businesses use text-message based 2FA, etc. In the short-run we are aiming toward pilot implementations with small businesses. To further this, we have put out many integration resources, guides, and documentation and accordingly believe implementation of Raindrop is a more straightforward workflow. As far as large enterprises go, Hydrogen has clients, so it is helpful for our project to have those connections. Large institutions are generally relatively slow-moving, but have expressed interest in using Raindrop, in particular for securing employee accounts. As the product grows, we may eventually move in this direction with Client Raindrop, but resources will always be available for any site that wants to adopt it. Additionally, we are looking into making a wordpress plug-in to make implementation much more accessible for many developers. -- Q (Smithymethods): I know Hydro is a fintech company, hydro plan to curb phishing and hacking to the bearest minimum we know that hacking is very rampant these days on MEW and with other wallet. Is Hydro planning to create a wallet that support hydro and other tokens using their raindrop Technology? As this will put an end to the problem of phishing and also promote hydro A (Noah): like everyone in the crypto space, we’re very worried about phishing, both personally and on behalf of all hydro token holders. we first want to reemphasize that preventing scams and fraud has to be a community-driven effort: teams and users need to be vigilant and promote best practices (never trusting links in public chats, shunning fake accounts, etc.). we are excited about raindrop’s potential to help combat phishing, though. we actually talked with someone about mycrypto about integrating raindrop into their desktop app. we’ve forked their code and are researching how feasible an implementation would be, stay tuned for updates! — Q (Hodlall): What security measures in place for hydro , I see lot of tokens being hacked nowadays , and money is stolen.. how does hydro make sure their team tokens are completely secured or as much as possible A (Andy): We all have been in crypto for a while and are pretty well versed in securing our stuff. Our tokens that are currently locked are in cold storage. Others are held in hardware wallets — Q (Joleen): We know that the Hydrogen platform is going to be used by CI Investments, a large insurance firm and a world top 20 bank, have these companies already begun purchasing Hydro OTC? A (Andy): This is something that we feel is best to be hands off with. It is really up to the discretion of our partners — Q (khonsu’s mumaffi): Ill be honest i have not yet fully read the whitepaper but id like to know other than investor growth do you truly believe there is interest in a model where users have to pay each time for access? How big do u expect this fee to be...for large companies dont you believe this is an unscalable practice? This may be a question more about most technologies built on token based economics too. A (Andy): So we have 2 different authentication protocols. One happens less often and is in the same vein as OAuth. This is called Server-Side Raindrop. This requires tokens to be sent. This protocol would only happen once per day for a business when accessing something like an API. I don't feel that these values are extremely high for increased security. Our second protocol, Client-Side Raindrop, functions much more like google auth. This logic actually does not require any tokens or even a transaction by the end user. It is 100% free for them to use and they will never have to pay for a transaction. Here the responsibility is on the implementing party to stake tokens. This allows them to onboard users and authenticate them. We felt it was crucial to have an authentication that did not have a cost per user login as it is not scalable — Q (khonsu’s mumaffi): Also do u plan to tokenise atom and ion too and if not covered earlier how big of an impact do the market conditions have on your business A (Anurag): Tough to say we're going to "tokenize" them since that word can carry a lot of different meanings in different contexts, but we do plan on integrating the entire Hydrogen platform with Hydro. This will most likely take the form of enhancements to systems leveraging Hydro. You can find a more detailed breakdown on our Hydro roadmap: https://medium.com/hydrogen-api/project-hydro-features-in-depth-look-39faa29f0d61 Market conditions don't really have an impact - we're still building the same tech on a day-to-day basis — Q (ghost): As a company in the space, do you see the fact that tokens have to be acquired on exchanges as an issue? How would a company that wants to develop with you acquire tokens? A (Anurag): Depends on what they're developing. dApps developing using Hydro smart contracts to create native functionality to their applications would need to acquire those tokens on their own; however, companies using the Hydrogen API will not. Here's a detailed article outlining when a developer would need the token for the Client Raindrop smart contract: https://medium.com/hydrogen-api/how-to-use-client-raindrop-without-using-the-hydrogen-api-bb04934ae293 — Q (jarederaj): Can you describe your stakeholders and give me a better sense of the exigency of your products? Who are you focused on serving with your platform and why are they motivated to use your platform? A (Shane): The Hydrogen platform serves developers and enterprises who want to build applications. We are specifically targeting the financial services sector, including banks, investing firms, insurance providers, and financial advisors. This includes large enterprises, individual developers, and startups. Our products are Atom (core digital infrastructure & engine for finserv), Ion (AutoML & business intelligence capabilities), and Hydro (blockchain & decentralization layer). Each has a different use case but these products combine to form an ecosystem of tools for developers to build sophisticated applications with. The main pain point we are addressing is the resources required to build, launch, and run a digital financial application. These resources include both time and money. Large enterprises have resources, but they waste years and millions of dollars trying to launch digital platforms (we've seen this first-hand), often unsuccessfully. The motivation here is obvious. Startups and smaller developers, on the other hand, do not have access to huge resource pools, so they are forced to look for solutions that make the process more efficient. In the same way that Wordpress makes launching a blog easy and also allows for extended functionality, Hydrogen makes launching fintech application easy. — Q (shujjishah): When the app will be released??? A (Anurag): We're going through our mobile development very iteratively. Since we work very closely with the product, there are things we can't recognize until we've got people beta testing the app. As we started Beta testing and conducting user-research, we realized that one aspect of the UI for the app was not intuitive to about half of our testers. We decided to make a few API changes to enable the mobile app to display a "linked" vs "unlinked" status in order to improve the user experience. Our front-end team is finalizing these changes, so our Beta testers will receive a new build in their testflight apps within the next few days. This new build will require another round of Beta testing to ensure that none of the code changes causes any problems on devices; if this change goes smoothly, and our mainnet testing goes smoothly, we will be able to release the app this month. Since there isn't much precedent on releasing a product into the app store that connects users with the ethereum mainnet, our primary concern is making sure the product works fully as intended and provides an intuitive user experience. Misc Q&A’s Q (elmer_FUD): What's your favorite thing to drink? A.1 (Andy): Overall, I really love Baja Blast Mountain Dew. If I am drinking, I'm a big fan of fruity beers like Blue Moon and Shocktop. Also had a really good raspberry sour recently A.2 (Nahom): Primary=water but i do enjoy Jamaican ginger ale/beer. We keep honest tea in the office too, i love it because it brings me back from the dead:skull_and_crossbones:, @Hydro Andy drinks most of it behind my back though :triumph: A.3 (Noah): hard: tequila or picklebacks soft: any sour beer other: mango juice i also crush like 2 nalgene’s worth of water every day at work A.4 (Shane): For hard alcohol: whiskey/bourbon A.5 (Anurag): ooh, went to the finback brewery last weekend; was wonderful — Q (Joleen): Do you HODL any other tokens personally? A.1 (Andy): I do. I think it is probably best to not say which, but if you follow me enough in #altcoins I am sure you will see me talk about a few A.2 (Noah): im a bit of an eth maximalist actually :grimacing: i do dabble though — Q (Joleen): Who got who in the World Cup sweepstakes? A.1 (Andy): I'm going for Germany, but I know next to nothing about soccer A.2 (Shane): I'm rooting for Portugal, but I don't think they're going to win the cup — Q (Joleen): Who's got the best banter in the office? And who has the worst? A.1 (Andy): One of our backend devs, Paavan, typically has some great banter and even better hot takes A.2 (Noah): dont @ me for worst banter A.3 (Shane): Sabih (BA @ Hydrogen) banter is by far the best
InvestInBlockchain - Cryptocurrencies in the Top 100 With Working Products
📷 Bitcoin is the cryptocurrency that started it all back in 2009, after the global financial crisis and subsequent bailouts of banks left many people disenfranchised with fiat currency and outdated, insecure financial infrastructure. Today, Bitcoin is being used for peer-to-peer payments across the globe. More than that, though, it is leading the way towards a future in which financial technology is trustless, secure, resilient, and censorship resistant. Without Bitcoin, this list would not exist.
📷 The platform that brought smart contracts to the blockchain, spurring a minor revolution in the cryptocurrency ecosystem. Before Ethereum, Bitcoin and its transaction-oriented design was the central focus of most blockchain projects. After Ethereum, teams saw the value of decentralized apps (dapps) and smart contracts, and shifted their focus to compensate. Vitalik Buterin’s Ethereum whitepaper was released in late 2013. The project itself was announced January 2014, with a crowdsale the following July. The system officially went live in July 2015. Since then, hundreds of businesses, individuals, and blockchain projects have adopted Ethereum as their main smart contracts platform.
📷 Ripple is focused primarily on one thing: fast and cheap international transactions. Current banking infrastructure has failed to evolve in the 21st century, such that it still takes 3-5 business days on average for an international transfer to be processed. With just 4 second transaction times and at a fraction of the cost of a wire transfer, Ripple’s working product is already impacting the banking sector. The big knock against Ripple is that its native token, XRP, is completely unnecessary. Indeed, driving adoption of Ripple’s banking solutions is far easier than getting real-world adoption for XRP. If you’re interested in seeing a discussion about how XRP adoption will occur, you might find this reddit thread worth a read. Meanwhile, all of us will just have to wait and see whether XRP adoption strategies ultimately come to fruition.
Bitcoin Cash (BCH)
📷 Bitcoin Cash was created in 2017 when the first ever hard fork of the Bitcoin blockchain took place. The split was the result of Bitcoin’s 1MB blocks filling up. Transaction speeds were declining, fees were increasing, and it became clear to the community that the current model wasn’t sustainable for scaling. In a move that still causes cryptocurrency fights to this day, Bitcoin and Bitcoin Cash soon emerged as separate but similar projects. BCH has 8x the block size of BTC, giving it roughly 8x the transaction throughput. Its fees and transaction times are much faster, as predicted. Learn more about Bitcoin vs Bitcoin Cash.
📷 The Stellar project and its associated Lumens (XLM) token was forked from the Ripple protocol in 2014. Stellar has come into its own since then, providing a blockchain connection service for fiat transactions between banks, payment systems, and people. Stellar is fast and reliable, and it works with practically no fees for the end-user. Stellar is a payments system, meaning its job is to move money as efficiently as possible. Partnerships with banks and financial institutions were key in evaluating its status, as was the ability to actually send money using the network. Several non-profits and commercial entities have agreed to use Stellar as part of their financial infrastructure. Recently, the team partnered with IBM and KlickEx to facilitate cross-border transactions in the South Pacific and announced an affiliate with Keybase to streamline international transactions. Stellar also has projects being builton its network by major established entities. IBM’s blockchain division is using XLM for their payments infrastructure, for example, and the Veridium startup is working with both organizations to tokenize its carbon credits market.
📷 Litecoin is a Bitcoin fork that was created in 2011 by Charlie Lee as a cheaper and faster (2.5 minute block time instead of 10) alternative to Bitcoin. This is accomplished predominantly because Litecoin uses a Scrypt hashing algorithm instead of the SHA-256 algorithm used by Bitcoin. It’s common to hear Litecoin called “digital silver” to Bitcoin’s “digital gold,” and in reality Litecoin does not really expand upon the functionality of Bitcoin in a significant way so much as it makes different tradeoffs. That being said, it does succeed in being cheaper and faster to use than BTC, which has led to it being accepted by hundreds of merchants and thus making Litecoin one of the most widely used cryptocurrencies for digital payments.
📷 Tether is an unusual project. Whereas most cryptocurrencies rise and fall in value, Tether was designed to stay the same, fixed at a 1:1 ratio with the U.S. dollar. This allows users to store, send, and receive digital currencies across platforms without incurring significant losses due to value fluctuations. The Tether stable coin sounds straightforward, but the project isn’t without controversy. USDT is supposedly backed by real USD sitting in a bank account. But in which account? Who controls it? And is Tether being used to manipulate the value of Bitcoin? It’s all part of the Tether controversy.
📷 Released in 2014 as a fork of Bytecoin, Monero has since made a name for itself as the most popular privacy coin on the market. Most cryptocurrencies offer little in the form of anonymity. Monero was built for privacy from the ground-up, featuring stealth addresses, ring signatures, and complete coin fungibility. All of this adds up to a near-perfect cloak of anonymity, allowing Monero users to conduct transactions without exposing their identity. Monero has had steady growth over the years thanks to a dedicated team of developers and an active community. The project continues to evolve with new privacy features and improved transaction security.
📷 NEO was founded in 2014 as one of the earliest smart contract platforms, giving it a wide breadth of possible functionality. The platform’s strongest use case is digitizing traditional assets so that they can be easily tracked and exchanged on the blockchain. NEO is also well-known as the “Chinese Ethereum,” and the fact that it is a Chinese-based project does seem to make Chinese dapp developers somewhat more likely to build on top of it than other platforms. In fact, NEO has already supported dozens of ICOs and remains one of the predominant platforms for supporting smart contracts and dapps.
Binance Coin (BNB)
📷 Binance Coin is an exchange token used to reduce trading fees on the Binance platform. Users can opt to pay exchange, listing, and withdrawal fees using BNB and enjoy as much as a 50% discount on all charges. This turns out to be a powerful incentive for purchasing and holding BNB, as what trader doesn’t enjoy saving money on transactions? Binance Coin is an ERC-20 token that runs on the Ethereum blockchain. Its purpose is extremely limited, but because such a vast number of Binance users transact with it every day, it qualifies as a working and active product.
📷 Zcash is another immensely popular privacy coin that often cracks the top 20 cryptocurrencies. It uses the tagline “internet money” and promises to fully protect the privacy of transactions with zero-knowledge cryptography. Zcash provides anonymity by shielding transactions on the blockchain, preventing anyone from seeing the sender, recipient, or value of each transaction. The technology is so effective the Ethereum team is investigating it to enable anonymous transactions on their network. Zcash has grown in leaps and bounds in 2018. The dev team published a roadmap through the year 2020, which includes a major features upgrade in the October 2018 Sapling release. Coinbase is also considering listing Zcash, which is a huge boost for any cryptocurrency.
📷 Qtum is a smart contracts platform similar to Ethereum, only with a stronger focus on value transfers and decentralized apps. It’s meant to be something of a hybrid between Bitcoin and Ethereum, allowing businesses to build smart contracts on the platform or just focus on cryptocurrency transactions. Qtum launched in March 2017, and dashed straight to the top. The initial offering sold over $10 million in tokens after just 90 minutes. The project differentiated itself by providing a rare Proof-of-Stake smart contracts platform designed to compensate for some of Ethereum’s shortcomings, including lack of compatibility for mobile devices. Qtum released its mainnet in September 2017, opening the doors to a fully functional smart contract and dapps platform. Several projects already have an established presenceon the network. One of the more exciting ones is Space Chain, which aims to create an open-source satellite network anyone can use for data transmission, storage, and development.
0x Protocol (ZRX)
📷 0x Protocol has one of the most important working products in the entire Ethereum ecosystem. It is a permissionless, open-source protocol that facilitates trustless exchanges of Ethereum tokens through relayers and dapps that build on top of the protocol. Not only has 0x been providing this functionality for over a year now, but they’ve been working to expand the protocol functionality significantly since that initial launch. In 0x protocol 2.0 and beyond, it will be possible to trade tokens built on standards besides ERC-20, including non-fungible ERC-721 tokens. In a market full of scams and vaporware, 0x’s valuable contributions to the Ethereum ecosystem have made it one of the best performing cryptocurrencies of 2018.
📷 Bytecoin is another popular privacy-focused cryptocurrency with a strong community and user base. Transactions on the Bytecoin blockchain are instantaneous, untraceable, unlinkabe, and resistant to blockchain analysis. Bytecoin has been around for a long time now, with contributions to the project beginning in 2012. However, that hasn’t stopped the project’s developers from continuously improving the product. The recently updated Bytecoin roadmap has a hard fork for a consensus update scheduled for August 31, as well as numerous initiatives for community growth constantly in the works.
📷 Founded in 2015 by former Bitcoin developers, Decred’s most important working product is its solution to Bitcoin’s biggest problem. No, not scalability… blockchain governance. You see, early Bitcoiners have been debating block size limitations and the efficacy of other scalability solutions like the Lightning Network for years, even though the problem of scalability really only became discussed in the mainstream in 2017. With its community-based governance model and strong adherence to the core ethos of decentralization, Decred is built to evolve and improve rapidly. That means that it’s equipped to handle not only the scalability problem today, but other big problems that might arise down the line. When you have poor governance, it is an arduous process making any upgrades to a project, no matter how necessary they may seem to the majority of coin holders. Decred’s best-in-class and still improving governance model give it an intriguing case to be a leader in digital payments for a long time to come.
📷 BitShares aims to improve worldwide access to financial services via blockchain. The tagline “assist the unbanked” summarizes the project nicely. In practice, this translates to BitShares operating as a decentralized exchange, one that was built from the ground-up to avoid scalability issues and keep transaction fees low. BitShares was launched in 2014 by Dan Larimer, who would then go on to take a lead development role in both EOS and Steem. The current state of the project offers decentralized asset exchange, price-stable cryptocurrencies, recurring and scheduled payments, user-issued assets, and more, all available through a decentralized system powered by delegated PoS consensus.
📷 Steem is the cryptocurrency that powers Steemit, a decentralized social media platform that incentivizes user participation through micropayments. Think of it like Reddit, only instead of just upvoting or downvoting posts, users can actually reward creators for their effort. Steem is a functional cryptocurrency used exclusively on the Steemit platform. That gives it something of a limited use, but seeing as how Steemit is live and boasts a few hundred thousand users, it’s hard to argue it isn’t a working product. Some people may even beearning money using Steemit.
📷 Siacoin is one of the leaders in decentralized cloud storage, a more secure and affordable alternative to centralized cloud storage solutions like Amazon S3, Google Drive, iCloud, Dropbox, and others. Sia 1.0 was launched in June 2016, and has achieved considerable adoption since then. With the $200 billion cloud storage market widely seen as one of the spaces most ripe for blockchain disruption, Sia has gotten off to a nice start by offering a functional decentralized cloud storage platform for over 2 years.
📷 Augur is one of the most recently launched products on this list. The platform mainnet went live in early July 2018, bringing to fruition almost 4 years of post-ICO work. Augur is a decentralized prediction market that uses game theory to generate crowd-sourced insights. Essentially, thousands of people working together have shown the remarkable ability to forecast outcomes. With Augur, users can put REP tokens as bets on these predictions, essentially creating a form of “useful social gambling.” Augur’s release was a long time coming. The project started as far back as 2014, nearly a year before the ICO. The creators cite the complexity of Augur’s smart contracts as the chief cause of the lengthy development time. Regardless of its past, Augur is now a live product with a bright future. Over 300 predictions have already been made, with the largest winning payout hitting $20,000. Betting volume even exceeded $1 million within the first weeks of launch.
Basic Attention Token (BAT)
📷 Basic Attention Token was one of the easiest projects to include on this list. That’s because its working product, Brave Browser, has more than 3 million active usersbetween its mobile and desktop platforms, making it one of the most widely-used working products in the blockchain space. Not only is Brave Browser functional, it’s the only browser on the market that has built-in ad-blocking and tracker blocking, making the browsing experience both cleaner and faster than what you get with other popular browsers like Chrome and Firefox. The future remains uncertain for the BAT token itself, as its adoption depends heavily on whether or not advertisers buy-in to the Brave model, as well as how willing Brave users are to be shown relevant ads and to pass along the BAT they earn to content publishers. Given Brave’s success in just a short time since being launched, though, the future does appear promising for BAT.
📷 Nano (formerly RaiBlocks) is all about scalability. The coin has nearly instant transactions with a completely fee-less structure. The platform accomplishes this by creating a unique blockchain for every account, preventing bloat and allowing for practically infinite scalability. Nano’s motto of “do one thing and do it well” has gotten them a long way. The team doesn’t have to deal with scaling or slowdown issues thanks to the underlying structure of the project, allowing its roadmap to focus on wallet updates and outreach. This is one cryptocurrency that’s essentially feature complete, and it has been for some time.
📷 Golem has set out to be the Airbnb of computing resources. Have you ever needed extra GPU power to finish up a render? How about processing scientific data similar to the [email protected] project? Even if you don’t have those needs, a lot of groups do. Golem aims to provide easy access to those resources, all of which are rentable for a small cryptocurrency fee. Golem hit the mainnet launch button in April 2018, and was met with a fair amount of fanfare. One of the main goals for the feature-incomplete launch was to push the product out so real users could put it to work. The team was interested in strengthening their interactions with end users to help guide the future of the platform. The team has several major milestones planned for the coming months, so the mainnet release is only just the beginning.
Pundi X (NPXS)
📷 Pundi X has been shooting up the market cap rankings so far in Q3 2018, and they also happen to have a working product that just recently became available to retailers. The primary Pundi X product is a point-of-sale (POS) device that enables quick and easy mobile transactions for both fiat and cryptocurrencies. 500 POS devices are already being used by retailers in Asia, and there are thousands more scheduled to be distributed in the coming months. In addition, Pundi X also offers XPASS cards, cryptocurrency credit cards that can work in place of mobile apps for making digital payments. What makes the Pundi X project noteworthy is that it enables consumers to pay retailers in cryptocurrencies like BTC and ETH, and it immediately converts the payments into local fiat currencies so that retailers don’t need to worry about price volatility of the cryptocurrencies. This makes it significantly easier for people to use cryptocurrencies in their daily lives, making Pundi X an exciting project for blockchain enthusiasts who are looking for signs of future mass adoption.
📷 Waves was the first ever blockchain platform that made it possible for anybody — regardless of their programming experience — to create blockchain tokens. Additionally, Waves has a decentralized exchange where tokens can be traded and exchanged with fiat currencies. Since the project’s first releases in 2016, Waves has gone on to make their DEX accessible from mobile phones and expanded its functionality significantly, while also building several strategic partnerships to help grow the Waves community and user base. Ultimately, though, the Waves Client is the project’s most important working product, as it is what allows tokens to be issued, stored, sent, and exchanged among users.
KuCoin Shares (KCS)
📷 Similar to Binance Coin, KuCoin Shares is an exchange token that can be used to pay reduced fees on cryptocurrency trades. KCS has the added bonus of paying dividends to long-term hodlers, as well, paying out a 5% ROI for most users. The nature of KuCoin Shares is one of the reasons the KuCoin exchange has gotten so much attention since it appeared on the scene. The tokens themselves are limited in scope, of course, but the sheer number of people using them for trades and buying them for passive income is enormous.
📷 Wanchain aims to build new and improved financial infrastructure to seamlessly connect the digital economy through blockchain interoperability. The use cases for Wanchain’s network are vast, and they include decentralized financial services, supply chain logistics, medical data sharing and security, digital ID management, and more. With the recently released Wanchain 2.0, it is now possible to transfer Ether cross-chain using Wanchain’s Ethereum Mapping Token, WETH. Ethereum interoperability is just the start, though, and it’s expected that cross-chain support for Bitcoin and a couple of ERC-20 tokens will follow before the end of 2018.
📷 Komodo is a fork of Zcash that uses the same zk-snark cryptography to hide information about transaction participants and amounts being sent. Functional privacy coins aren’t unique (there are a handful on this list) but Komodo does have some unique features. For one, Komodo was the first ever decentralized initial coin offering. Moreover, Komodo helps other developers to build their own customizable blockchain solutions, from building and securing independent blockchains and launching decentralized ICOs, to integrating projects into the cryptocurrency ecosystem. KMD would already qualify as a working product for its anonymity features on digital payments, but add the end-to-end blockchain building solution and it’s clear that Komodo is making meaningful contributions to the cryptocurrency ecosystem.
📷 Ardor is a scalable blockchain platform that allows businesses to create their own child chains and tokens with relative ease. This helps keep blockchain bloat to a minimum and provides multiple transactional tokens without sacrificing core chain transactions. It’s also a remarkably energy efficient platform that uses Proof-of-Stake to power consensus. Ardor launched its mainnet on January 1, 2018 after a full year in testnet status. Its core features are largely in place, with the roadmap set to improve things like scalability and snapshotting. The Blockchain-as-a-Service-platform hosts a few projects of its own, including the Ignis ICO, which was the first child chain on the mainnet.
Huobi Token (HT)
📷 Huobi is a digital asset exchange platform founded back in 2013, now offering well over 250 different trading pairs. The Huobi Token, meanwhile, is an ERC-20 token that is used on the exchange for discounts on trading fees of up to 50%. In addition, 20% of the income generated on the Huboi Pro trading platform is used to buy back HT on the open market. Unlike most buyback programs, the main purpose of Huobi’s program isn’t to reduce the circulating supply of HT. Rather, the HT that is bought back goes into a Huobi Investor Protection Fund, which is used to compensate Huobi users if they lose coins or tokens on the platform, as well as to ensure market stability and protect investor interests.
📷 ZenCash is yet another privacy coin with a working product in the Top 100, originally launched in the first half of 2017. What makes ZenCash unique is that it’s the first blockchain with Transport Layer Security (TLS) integration for node encryption, making communication on the ZenCash network both private and highly secure. Some other interesting parts of the ZenCash product include Tor nodes and built-in chat messaging services. In the future, the ZenCash team will deliver a DAO Treasury Protocol-level Voting System as well as a scalability solution to handle greater transaction volume.
📷 PIVX is another privacy coin that focuses on keeping users and their associated transactions hidden under a cloak of secrecy. The project also tries to keep transactions as fast and fee-less as possible, something not all privacy platforms can boast about. PIVX launched in January 2016. The coin is currently spendable and delivers the privacy features it promises, though it’s not yet a widely accepted currency by merchants. Future plans for PIVX include governance functions to engage the community, wallet voting, and its own zPIV decentralized exchange.
Kyber Network (KNC)
📷 Kyber Network launched their mainnet in Q1 2018, enabling instantaneous and secure inter-token settlements through a Decentralized Liquidity Network. It’s currently possible to swap ERC-20 tokens on the network with just a few mouse clicks, giving it some basic functionality that is already being used to improve liquidity for Ethereum tokens. In the future, however, Kyber Network will expand its functionality significantly in an effort to seamlessly connect dapps, DEXes, protocols, payment systems, token teams, investors, fund managers, and digital wallets.
📷 Bancor is a liquidity provider that enables users to exchange tokens without the need for a third-party to be involved in financing the transaction. Gaining liquidity is incredibly important for young cryptocurrency projects, as a lack of liquidity makes it risky for investors to buy a considerable amount of a given coin or token, knowing that it might be exceedingly difficult to sell should they wish to. Bancor’s technology makes it possible to convert one token to another, so that investors can be confident that they won’t be stuck involuntarily holding a cryptocurrency that they want to sell. This functionality makes the Bancor Liquidity Network one of the most promising working products on this list, and one that has already achieved a good deal of adoption.
Loom Network (LOOM)
📷 Loom Network is still less than a year old, having been founded in October 2017. However, they have accomplished a lot in that short time span, including having launched numerous tools to help software developers learn how to build blockchain solutions. The most important of these tools — and Loom’s biggest working product — is the Loom software development kit (SDK). However, Loom Network is far more than just a simple blockchain coding academy. It is also a production-ready scalability solution for Ethereum, as the Loom developer toolkit helps programmers to build highly scalable dapps which connect to the Ethereum blockchain through special side chains called DappChains. The project may still be in its infancy, but Loom Network is already contributing more utility to the cryptocurrency ecosystem than the vast majority of other cryptocurrency projects.
📷 Polymath wants to be the world’s go-to resource for security tokens on the blockchain. What Ethereum did for tokens, Polymath will do for securities. The advantages of this are enormous, but the Polymath team likes to point to 24/7 market access, the elimination of middlemen, and trading access for 2 billion unbanked people around the world as the chief benefits of their efforts. The Polymath platform launched in October 2017, and has since released a new security token every week, attracting investors and traders alike. It’s not as exciting of a project as some other blockchain tech, but it’s delivering on its promises with a working product.
Bibox Token (BIX)
📷 Bibox is a encrypted digital asset exchange whose primary differentiator from other crypto exchanges is that it integrates AI technology. The purpose of the AI is to help Bibox’s traders, which it does by providing quantitative computation and analysis of trading activity, personalized risk allocation strategy, speech recognition, and objective analysis of the various coins and tokens listed on the exchange. The Bibox exchange first launched back in November 2017. It has operation centers in the US, Canada, mainland China, Hong Kong, Japan, and Estonia. BIX token holders receive 20% of the exchange profits, and also get discounts on trading fees, similar to Binance. https://www.investinblockchain.com/top-cryptocurrencies-working-products/
ABOUT FINATCH Finatch is a private Blockchain Technology Company which aim's at revolutrionizing the Blockchain Technology industry. Looking at the lack of stable, fast and reliable decentralized crypto exchanges which causes inconviniences to crypto traders in the space. We have come up with the solution to the problems faced by decentralized exchanges. There are basically two different types of exchanges: Centralized and Decentralized exchanges. We will focus on the Deentralized exchange system. We have a strong belief that Decentralized based crypto exchanges will be bigger than Centralized based crypto exchanges in the nearest future, because Blockchain is all about Decentralization. They will play an evermore role in the world of finance, and we call this FINATCH EXCHANGE. FINATCH EXCHANGE Finatch Exchange is a Decntralized crypto exchange, which is run and powered by the Finatch Smart Contract Blockchain. Problems Poor technical architecture in Decentralized exchanges There are a good number of exchanges set up by professionals who have little or no experience in finance or in operating an exchange. They often take the easiest route to get the system up and running. While this may work well in the beginning, as traffic grows, the system will not be able to handle the increased load. Exchange systems need to be engineered from the ground up with security, efficiency, speed, and scalability in mind. This often slows down the initial development, but is critical for long-term success. Our team has decades of combined experience building and maintaining world class financial systems that shape the economy. We understand how these systems are built from the ground up. Slow Smart Contract confirmation time Deployment of Smart contract on the blockchain takes time and causes inconveniences becauses of the poorly built blockchain, this results in a bad user experience in decentralized crypto exchanges. Our team has designed a new and capable type of Blockchain that speeds up confirmation time for smart contratcts, making the platform user friendly and smooth. Insecured Platform There are hundreds of exchanges that went down due to being hacked. Finatch is built to top notch quality, audited, and penetration tested. We have experience building financial systems to the highest security standards and strive to ensure security first. Poor market liquidity Professional traders and normal users are significantly affected by this. Having a shallow orderbook means high slippage when trading, which is very expensive for traders. Finatch’s team have been in both the finance and crypto industry for many years. The team has worked on and operated a number of exchanges, and have accumulated a large network of partners in this space. These partners will be key in bootstrapping the exchange. Poor customer service Traders are a different breed when it comes to users. Understanding the trader mentality is vital for running a successful exchange. Money is literally on-the-line. Many exchange service trades as if they were running a social media site. A 3-second delay in seeing your friends’ status update would hardly be noticed, but on an exchange, the same would be unacceptable, resulting in a torrent of user complaints. In additional to the technology stack, Finatch is built with service in mind. Finatch shares and supports responsibilities across the entire staff and company. When a trader has a problem, they get an answer directly from someone who knows the system and not someone reading from a script. Limited access to decentralized services There are few existing decentralized exchanges with close to good user interface and lacks quick and reasonable smart contract transaction fees, causing slow platorm functioning. Our team has designed a new and capable type of Blockchain that speeds up confirmation time for smart contratcts, making the platform user friendly and smooth. Poor internationalization and language support Blockchains have no borders. Most exchanges focus only on one language or one country. Our international multi-lingual team has extensive working experience in North America, Europe, Asia and Africa and we are able to smoothly support the global market. Lack of transparency All trading activities should be decentralized and open to the general public to insure trust and transparency in trades. Centralized crypto exchanges lack this quality. Finatch runs on a Decentralized crypto platform where all trading activities are transparent. Finatch is a Crypto Decentralized crypto exchange that has the feel and look of Centralized Crypto exchange but with more convinience And extra Blockchain Security Layer. An Exchange where you own your private keys. Finatch exchange is a huge decentralized trading exchange platform equipped with various sub-platform, trading tools and secure decentralized wallet. Finatch exchange consists of various sub platforms to choose from, this changes the trading experience namely: 1. Binary Platform: Fin vault platform, FinBox platform 2. Finatch trading tools: Finatch exchange have the best trading tools ready for traders on all our trading platform, taking trading experience to the next level. You can choose from our multiple trading tools the one that suits your trading skills. 3.Andriod and iOs Mobile Trading Application. MATCHING ENGINE With our Unique Smart Contract Blockchain Our matching engine is capable of sustaining 1,500,000 orders / second, making Finatch one of the fastest exchanges in the market today. You can be certain, on our exchange, that your orders will never be stuck due to the matching engine being overwhelmed. FEATURE ROLLOUT We will roll out the platform in roughly the following order: Decentralized (on-chain) exchange Spot trading Margin trading Futures Anonymous instant exchange and more... COINS Finatch will support trading pairs in the following coins: BTC ETH LTC BCH FIN (Finatch Coin) More coins will be added over time. We generally will only add coins that have strong credibility, user base, and liquidity. If you have a coin that you wish to be listed on Finatch later. DEVICE COVRAGE We will provide cross-platform trading clients for: Web-based decentralized trading client Android native client iOS native client (pending App Store review) Mobile HTML5 client (including WeChat H5 client) PC (Windows) native client REST API MULTILINGUAL SUPPORT We will support English, Chinese, Japanese and Korean on all of our user interfaces. (The very initial release will be in English only.) More languages will be added over time. FINATCH COIN We will build our own Blockchain based Crypto coin, called the Finatch Coin. The Finatch Coin Total Supply is capped at 952.5M, but a strict pre mine of 200M FIN will be mined during the genesis Block. FIN Coin will run on the Finatch Blockchain. Percentage (%) Amount (FIN) Participant 25% 50,000,000 Airdrop&Bounty Programs 25% 50,000,000 Project Development 40% 80,000,000 Founding Team 10% 20,000,000 Angel Investors No ICO or Pre-ICO will take place. 50% of pre-mined Coins will be distributed to the general Public Via Airdrop stages and Bounty Programs. FIN VALUE AND REPURCHASING PLAN You can use FIN to pay for any fees on our platform, inculding but not limited to: Exchange fees Withdraw fees Listing fees Any other fee When you use FIN to pay for fees, you will receive a significant discount: 1st year 2nd year 3rd year 4th year 5th year Discount Rate 60% 30% 12.5% 6.75%5 no discount REPURCHASING PLAN Every quater, we will use 15% of our profits to buy back the pre-mined FIN coin and Burn them, until we buy up 50% of the pre-mined FIN coin during genesis block (100M) back. All buy back transactions will be annouced on the blockchain. FUNDS USAGE 35% of the funds will be used to build the Finatch platform and perform upgrades to the system, which inculdes team recruiting, training, and the development budget. 50% will be used for Finatch branding and marketing, including continuous promotion and education of Finatch and Blockchain innovations in industry mediums. A sufficient budget for various advertisment activities, to help Finatch become popular among investors, and to attract active users to the platform. 15% will be kept in reserve to cope with any emergency or unexpected situation that might come up. FINATCH BLOCKCHAIN Finatch Blockchain is a powerful unique blockchain built to solve the problems of long confirmation times and high transaction fees on smart contract Blockchains. We also solve the scalablity problem with block size, by increasing the block size limit to 1GB. Finatch Blockchain can handle more than 100,000,000 tranactions per second, with as little to as low as $0.001 tranaction fee, making our blockchain the most convinent and reliable blockchain in exixtence. Our Blockchain runs on Scrypt PoW/PoS and Fault Tolorence Algorithms, making it one the most secure blockchains. You can deploy smart contracts, decentralized applications and create your own (FRC Tokens) on our blockchain. BUILD DECENTRALIZED APPLICATIONS Combining a modified Bitcoin Core infrastructure with an intercompatible version of the Ethereum Virtual Machine (EVM), Finatch Blockchain merges the reliability of Bitcoin’s unfailing blockchain with the endless possibilities provided by smart contracts. Designed with stability, modularity and interoperability in mind, Finatch Blockchain is the foremost toolkit for building trusted decentralized applications, suited for real-world, business oriented use cases. Its hybrid nature, in combination with a PoS/PoW consensus protocol, allows Finatch Blockchain applications to be compatible with major blockchain ecosystems, while providing native support for mobile devices and IoT appliances. DEPLOY DECENTRALIZED SMART CONTRACTS Finatch makes it easier than ever for established sectors and legacy institutions to interface with blockchain technology. Create your own tokens, automate supply chain management and engage in self-executing agreements in a standardized environment, verified and tested for stability. SMART CONTRACT LIFE CYCLE MANAGMENT Finatch, in cooperation with its academic partners, develops tools and methods to standardize the workflow for business smart contract development. This includes the formally verifiable translation of human-readable agreements to machine smart contracts, and the error-resilient specification of their elements, terms and conditions. SETTING INDUSTRY STANDARDS Cooperating with a series of partners and third parties, Finatch aims to establish a smart contract hub, offering secure and thoroughly tested contract templates, tailor fitted for a multitude of industries and use cases, such as supply chain management, telecommunications, IoT, social networking, Crypto exchanges and many more. ABOUT FIN COIN FIN Coin is a decentralised Cryptocurrency based on Finatch. It is the local based Cryptocurrency of Finatch Blockchain. FIN Coins are cryptographic software tokens used to engage with distributed applications (DApps) and smart contracts on the Finatch Platform. FIN Coins will serve as the staking currency of the Finatch blockchain and fuel computational operations performed by the Finatch network. SPECIFICATION Total Pre-Mined Supply: 200,000,000 Block Target: 3-15 seconds Stake Return: ~5 FIN Coin Algorithm: Scrypt PoW/PoS and FT The FINATCH Foundation: Governance Structure The development and maintenance of the FINATCH Blockchain, as well as all services provided by FINATCH, are directed and supervised by the FINATCH Foundation - a non-profit organization, representing FINATCH’s stake and token holders as elaborated below. In order to avoid the inefficient conduct, open source and blockchain projects often suffer from, and to ensure a coherent and standardized implementation of the FINATCH blockchain, the FINATCH Foundation was established under the guidance and support of FINATCH Inc. The Foundation will oversee the development of the FINATCH Blockchain, advocate governance transparency, and promote the safety and harmony of the open source ecosystem. The design of the Foundation’s governance structure mainly considers sustainability, management effectiveness, and fund-raising security in the open source community. The Foundation consists of various committees, such as Executive Judgment, Code Review, Finance & HR, as well as Marketing & PR. The different committees work in cooperation to manage FINATCH’s daily operations and special occasions with detailed operational procedures and rules. Learn more here: https://finatch.org/governance-structure Decentralized Governance Protocol The Decentralized Governance Protocol (DGP) is designed so that individual blockchain parameters can be modified through a specially designed smart contract on the blockchain. Most importantly, this technology allows these blockchain parameters to be changed without any disruption to the ecosystem. After a setting change, no new software must be downloaded by users, and no intervention is needed from stakers, miners and node operators. The way the DGP works is relatively straightforward. First, a governing party for the DGP makes a proposal to change a parameter. Afterward, all the governing parties for the DGP can vote on the proposal, and if it receives enough approval votes, then the parameter change proposal becomes active. The proposal data is then placed in a standardized format and a particular storage space so that the blockchain software can easily access it without needing to execute the DGP contract directly. Learn more here: https://finatch.org/decentralized-governance-protocol The FINATCH Foundation will list the total assets that it holds including Bitcoin, Ethereum, Legal Tender, and FIN COINS. The Foundation will also seek complementary services to aid our efforts in transparency and professionalism with a professional auditing firm, legal team and a professional digital asset management solution. We hope this will help promote the healthy development of the FINATCH Project and serve as a model for other projects. The content will be made public to the community on the FINATCH.org Website EXCHANGE LIST Binance Huobi Kucoin Bibox Qryptos Satoexchange BIGone Bitrue Bilaxy Bit-Z Linkcoin SECURE WALLET Ledgerwallet Trezor
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