Messari's Weekend Reads - Issue #45 😎
reading, sleep, and self-care
|Messari Research||Sep 27, 2019|
Your daily snapshot from the Messari screener.
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Now, on to our weekend reads…
Messari’s weekend reads:
Bitcoin Equals Freedom - Ross Ulbricht
Privacy Is a Feature Not a Product - Ryan Gentry
Interoperability and composability within Ethereum - Linda Xie
What would happen if an 800-kiloton nuclear warhead detonated above midtown Manhattan? - Steven Starr, Lynn Eden, and Theodore A. Postol
Quantum Supremacy Using a Programmable Superconducting Processor - Eleanor G. Rieffel
Cryptocurrency isn’t the primary threat to sanctions enforcement - Jerry Brito
How will Bitcoin Behave if the Global Economy Erupts? - John Lee Quigley
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Messari Compression Algorithm
Content and thoughts from around the web as summarized by the Messari team.
⛽️ [Analysis] Understanding Ethereum gas, blocks and the fee market
The Ethereum Virtual Machine (EVM) is a computer system that consumes CPU cycles, disk access and memory which are measured in units known as gas. All operations on the EVM consume gas at varying amounts depending on complexity and every transaction has a gas limit to prevent attackers from overloading blocks. In order to cover the costs of gas, users must specify a price at which they are wiling to pay miners to execute these operations. This gas price multiplied by gas amount then becomes the transaction cost. (share or read more)
⚡️ [Analysis] The Bitcoin Lightning Network adds a new set of accounting challenges - Michael Sasson and Jeremy Nau
The Lightning Network is a promising scaling solution for faster, cheaper payments for blockchain protocols like Bitcoin. But Michael Sasson and Jeremy Nau, marketing and accounting professionals, argue that:
"Just when it seemed like accountants, auditors and tax professionals were beginning to understand the base layers of the Bitcoin network, the implementation of the Lightning Network unleashed an entirely new set of unresolved accounting, audit and tax challenges."
The unanswered questions raised by Lightning Network payments are numerous, and Sasson and Nau share a few. Discussing Lightning transactions, they ask:
"However, how should these be accounted for in a company’s books? Should the funds in a payment channel be treated like escrowed funds in a “restricted cash” account? Should the bitcoin in a payment channel be complemented with a liability because the funds could seem as “encumbered” by the two-of-two multi-sig? These questions remain unanswered and are bound to exacerbate in the coming years."
Ultimately, these questions will find answers, and the Lightning Network presents as many opportunities as questions. But for now, accountants are left scratching their heads. (share or read more)
Quick Bits (Don't read that, I read it for you)
Choke Points (Exchange News)
✅ Securities token platform Harbor has received its broker-dealer license through its Harbor Square Investments subsidiary according to a report from CoinDesk. The license comes after a year-long wait, as the U.S. Securities and Exchange Commission (SEC) and FINRA weighed the risks of digital assets. As a broker-dealer Harbor is able to buy and sell securities for their account and on behalf of their clients. (share or read more)
🚀 Binance announced the launch of its official staking platform on Thursday. The announcement comes after Binance introduced support for Tezos and Binance CEO CZ hinted at staking for the new asset. (share or read more)
Startup Signals (ICOs, Cryptos, and Startups)
🤝 The founders of RSK, a smart contract platform build on Bitcoin ($BTC), have acquired Taringo a Spanish-language social networking platform that claims to have over 30 million users. (share or read more)
💰 Block.One, the software company behind the EOS blockchain, will expand its U.S. footprint with a new headquarters and a $10 million investment in Arlington County, Va., CoinDesk reports. Virginia Gov. Ralph Northam announced the plans on Monday, along with a $600,000 grant from the state's Opportunity Fund. The company already has a Virginia presence with an 80-employee facility in Blacksburg, Va., approximately 250 miles away. (share or read more)
The Powers That Be (Legal/Reg/Policy)
😲 SEC Commissioner Hester Peirce spoke about the U.S. Securities and Exchange Commission's views on cryptocurrencies at a cryptocurrency compliance summit in New York hosted by Solidus Labs today, The Block reports. Peirce states that she views digital assets as "transaction mechanisms" and that she believes store of value is an important function of these assets. (share or read more)
🤔 The central bank of Venezuela is running internal tests to determine whether it can add cryptocurrencies, specifically bitcoin and ether, to its international reserves, according to a report by Bloomberg. The test came at the request of Petroleos de Venezuela SA (PDVSA), the state-owned oil and natural gas company. PDVSA is looking to have the Venezuelan central bank pay the company's suppliers on its behalf using the bitcoin and ether it has obtained. (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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