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We’ve got another excellent Narrative Watch “Monday” for you from NLW tonight. It’s all about bitcoin as a macro political force, which could be “ultimately hostile to the state.” While I anticipate that more attention within the crypto sphere will shift in Q4 to new smart contract platform launches like Hashgraph, Telegram, and Polkadot, almost all macro attention on the asset class should continue to flow through bitcoin for the foreseeable future.
Speaking of Hashgraph, it looks, uhh, expensive. HBAR started trading today at an implied fully diluted market cap of $5 billion with just 3% (!!!) of its projected future supply outstanding. That’s a lot of selling pressure, no matter how much you like the project. (Read more about the mainnet launch here.)
We have some major updates coming out tomorrow and Thursday that should be welcome news for our loyal Unqualified Opinions subscribers, so stay tuned!
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Messari Compression Algorithm
Content and thoughts from around the web as summarized by the Messari team.
🧮 [Analysis] You can now prove a whole blockchain with one math problem - William Foxley
The Electric Coin Company (ECC) says it discovered a new way to scale blockchains with “recursive proof composition,” a proof to verify the entirety of a blockchain in one function, explains CoinDesk's William Foxley. ECC engineer Sean Bowe said recursive proof composition is the result of years of labor, on which he almost gave up three separate times. Bowe’s work is similar to bulletproofs, another zk-SNARK that requires no trusted setup. In fact, Bowe explained his work as "recursive bulletproofs." After summarizing the technical details of his work, Bowe spoke practically on where his discovery ranks with other advancements:
“Where does this stand in the grand scheme of things in cryptocurrency? It’s a cryptographic tool to compress computation… and scale protocols.”
🔒 [Analysis] Zcash: A most private revolution - James Todaro, Joseph Todaro, and John Todaro
Privacy is one of the most glaring characteristics significantly lacking (or altogether missing) from how Bitcoin is most often used today. As a result, the market sector of privacy currencies has rapidly grown. In their investment thesis for Zcash ($ZEC), Blocktown Capital explains,
"Any amount of privacy previously associated with bitcoin has been all but eradicated by tightening identity requirements for cryptocurrency exchanges and bitcoin’s permanent ledger of on-chain transaction history. [...] It is critical that bitcoin does not facilitate any further erosion of financial privacy from the state. "
Dozens of blockchain protocols are actively developed to meet the need of robust transactional privacy, and Blocktown is placing their bet on Zcash, arguing that "Zcash may be the much-needed deterrent to government overreach" by virtue of its privacy features. Read their complete thesis here.
"If state authorities ever push too hard against financial privacy though, the most private cryptocurrency in existence is here — Zcash."
Quick Bits (Don't read that, I read it for you)
Choke Points (Exchange News)
✋ Transaction support for five privacy coins - Monero ($XMR), Dash ($DASH), Zcash ($ZEC), Horizen ($ZEN), and Super Bitcoin ($SBTC) - will end for OKEx Korea customers on Oct. 10. According to the exchange, the decision was made that these assets "violate" the Financial Action Task Force (FATF’s) “travel rule" because they do not allow the exchange to collect customer information during transactions. Customers will have until Dec. 10 to withdraw these assets from the exchange. (share or read more)
📉 Tagomi released its borrowing and lending platform to the wider public, enabling investors to short cryptocurrencies like bitcoin and ethereum, CoinDesk reports. Tagomi’s COO Kevin Johnson told CoinDesk that its new platform addresses issues that stymie institutional crypto shorts. (share or read more)
Startup Signals (ICOs, Cryptos, and Startups)
🚀 Hedera Hashgraph has officially launched its public network after testing with a small group of clients since Dec. 2018. With the network live investors in the project, which raised $124 million in a token sale, will start to receive their HBAR ($HBAR) tokens. According to CoinDesk, twelve cryptocurrency exchanges and over-the-counter (OTC) desks plan to list HBAR for trading: AlgoZ, BitOoda, Bering Waters, Bittrex, Galaxy Digital, GSR, Liquid, OKEx, OKCoin, OSL, Upbit, and xFutures. (share or read more)
🏘 AssetBlock launched its commercial real estate investment platform on Algorand ($ALGO). They are partnered with luxury hotel asset manager Lodging Capital Partners to tokenize $60 million of properties, giving investors access to properties unavailable to the public. (share or read more)
The Powers That Be (Legal/Reg/Policy)
🏛 Former U.S. Commodity Futures Trading Commission (CFTC) chairman J. Christopher Giancarlo is joining the advisory board of the Chamber of Digital Commerce, The Block reported on Tuesday. In his announcement, Giancarlo said he's hoping to work with other members of the board to "streamline and modernize" the regulatory landscape in the U.S. while encouraging blockchain innovation. (share or read more)
👀 The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions targeting three North Korean state-sponsored malicious cyber groups on Friday: Lazarus Group, Bluenoroff, and Andariel. Importantly, the announcement explicitly cites these organizations' involvement in the thefts of digital assets, noting their "target[ing] Virtual Asset Providers and cryptocurrency exchanges to possibly assist in obfuscating revenue streams and cyber-enabled thefts that also potentially fund North Korea’s WMD and ballistic missile programs." (share or read more)
Did I miss something?
Send me the link, your twitter handle and your best imitation compression algorithm write up. If I like it, I’ll include your bit next issue (with attribution).
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