Just over half a year ago the entire cryptocurrency market entered a bear market. For public blockchains, the time leading up to the bear market was spent growing ecosystems and findings ways to distribute wealth among developers and users. Since the bear market started, a trend towards dApp games has begun.
Many developers have found solace in developing games that can produce some of the highest activity we have seen on blockchains, and likewise, users have found comfort in playing fun dApp games, many of which come with crypto incentives – not a bad way to wait out the crypto winter.
However, looking at DappRadar, if you take the number of transactions or total price volume in the past 24 hours and divide it by the number of users, through simple calculation you will uncover the abnormally high numbers per user for many of these games. Suspicious you should be, as reports by blockchain security company PeckShield in December uncovered this activity comes from a small portion of accounts, pointing to the probability of fake volume.
Fake volume mostly occurs on public blockchains without a gas fee [or with a tiny gas fee], which with false marketing can help create the misunderstanding that this volume is good for the development of the blockchain and the token. This is fake news – fake volume is an overdraft of the ecosystem in which genuine developers and users do not reap the benefits of the blockchain. However, with a gas fee, we can make blockchains which reward both developers and users for the genuine activity they create.
Gas, synonymous with utility tokens, are used in blockchains for paying transaction fees or rewarding miners, just as we see in early blockchain projects such as Bitcoin and Ethereum. As blockchains have evolved, we have seen a more advanced use of gas, such as in Ontology, NEO, Cardano, and so on, where it is used for on-chain transactions, smart contract deployment, and more.
Meanwhile, with blockchains such as EOS and TRON, the same actions require collateralizing tokens to acquire network resources. Below are the advantages and disadvantages of blockchains which use gas. Let us take a more considered decision when choosing which public blockchains to support.
Advantages of gas
- Rewards miners/nodes
Whether it is Bitcoin, Ethereum, Ontology, NEO or other public blockchains, all require compensation for computing and storage.
- Simplified economic model
Blockchains without a gas model require case-by-case, complex fee structures for dApp developers to earn an income. With a gas model, this process is simplified and incentivizes developers to make good dApps which users actually use.
- Prevents malicious acts
If there is a gas fee to pay for transaction fees the likelihood of DDOS attacks is greatly reduced as they become expensive to execute.
- Prevents fake volume
Likewise, if there is a gas fee, the fake volume is costlier. This allows good dApps which create activity naturally be recognized.
- Supports growth
The gas model creates the need for users to purchase and hold tokens long-term [many tokens gradually unbind gas to holders, such as with Ontology].
Disadvantages of gas
- Gas price fee
If gas fee prices are not adjusted in accordance with the market, it will have negative consequences on the use of the blockchain.
Introducing a second token to a blockchain makes things a little more complex, which can make the blockchain less user-friendly if not implemented well.
ConsenSys Spin-Out 3Box Raises $2.5 Million to Build ID Tools for Dapp Devs
3Box, the latest startup to leave the Brooklyn-based incubator ConsenSys, just raised money to fuel a new identity tool for app developers.
3Box is developing a decentralized solution that people can use across both traditional and blockchain-based apps. The startup recently closed a $2.5 million seed round led by Placeholder Ventures, with investments from Venrock, CoinFund, Northzone and ConsenSys itself.
The “3” in 3Box is a subtle nod to the notion of Web3, a term used to describe the distributed evolution of digital platforms from social media sites to ticket sellers. Ethereum-centric startups such as MetaMask, Aragon and Foam – the latter of which garnered more than 500 contributors so far to its open source map – are already using 3Box. This pace of growth is what attracted the attention of CoinFund cofounder Jake Brukhman.
“This is a project with genuine traction,” Brukhman told CoinDesk. “There’s a huge hole in Web3 where identity should be. And I think 3Box is exactly where it should be to fill that hole.”
3Box aims to make portable logins and profiles more simple by utilizing the peer-to-peer InterPlanetary File System (IPFS) to give users keys to their own data, which is distributed across nodes instead of storing the profile on a centralized server like Facebook or Twitter.
While 3Box currently runs all the nodes, the startup plans to make that open-source software easy for any developer to spin up in order to diversify the network.
“We’re building a decentralized storage network on top of IPFS that allows all these services to tap into it, but it’s governed by the users’ consent,” 3Box co-founder Michael Sena told CoinDesk. “You can use 3Box anywhere that you have an ethereum wallet, because you basically need to be able to sign a message with your key.”
3Box makes it easier for blockchain developers to include features like private chats, uploading photos, liking posts and other common activities related to user-generated content and social interaction that are currently absent from most decentralized applications (dapps).
Indeed, Foam CEO Ryan John King told CoinDesk that some of his users leverage 3Box to have their external Twitter handle, GitHub profile and Foam-related activity all built-in to their Foam profile for a “social and reputational layer.” In the future, King said Foam plans to integrate 3Box’s thread and chat features.
“It’s enhancing user experiences in a whole new way,” King said. “With 3Box there’s an open API, it allows people to opt-in and choose whatever information they want to include while interacting with the [FOAM] protocol.”
“We expect to see a whole new wave of more usable, more enjoyable, more engaging, distributed applications.”
According to Sena, 3Box plans to eventually enable a username and password option so that people could also use it for profiles on traditional apps.
Unlike a regular profile, where you can deactivate it but the company keeps your data, an app that supports 3Box could give users control over their profiles.
“The idea was to create a Google Drive or Dropbox-like interface that lets people manage their 3Box data,” Sena said. “Users can go on 3Box.io Hub, their drive, and just delete all of their data. And they can be sure that it’s gone.”
In terms of the startup’s business model, 3Box will focus on offering services, such as node management and unique features, to developers and web businesses.
“The benefits of minimizing risk and reducing liability, building lighter weight apps faster, those extend far beyond Web3 developers,” Sena said.
Speaking to 3Box’s broader business model, Brukhman concluded:
“There is inherent value in decentralizing identity and user data.”
3Box team in November 2018. Danny Zuckerman, COO (bottom left); Michael Sena, CEO (bottom middle); Joel Thorstensson, CTO (top right); Zach Ferland, Senior Engineer (top left)
Multicoin, Intel Capital Invest $3.5 Million in Startup Demystifying Blockchain Data
Blockchain data startup dfuse has just closed its first official round of equity funding.
Led by Multicoin Capital and Intel Capital (a division of Intel Corporation), the seed funding saw the Montreal-based firm raise $3.5 million for its line of products geared towards demystifying blockchain data.
According to a press release provided to CoinDesk on Wednesday, other notable backers of the round included the VC funds Diagram Ventures, BoxOne Ventures, Panache Ventures and White Star Capital.
Founded in 2018, dfuse builds application programming interfaces (APIs) that overlay smart-contract-enabled blockchain platforms such as ethereum and EOS. These APIs help simplify the complexities of pulling data directly from a public blockchain.
Kyle Samani, managing partner at Multicoin Capital, told CoinDesk in an email:
“Blockchain databases can take seconds to confirm transactions – if they even confirm them at all. They don’t offer global search, reading data is non-trivial, and streaming updates is mostly out of the question. dfuse abstracts all of that complexity away.”
At present, the startup has four flagship products: dfuse Stream, Lifecycle, Search and On Demand Networks. Leveraging these tools, users can stream real-time transaction activity, search through blockchain databases, receive transaction guarantees for newly submitted data and more.
“Our vision is to help millions of developers embrace blockchain technology in their businesses,” dfuse CEO and co-founder Marc-Antoine Ross told CoinDesk. “Depending on which numbers you look at, there’s 20 to 40 million developers around the globe. We think only 1 percent of that developer population is touching any blockchain. We really want to fast track this.”
Moving forward, Ross intends to expand dfuse API products “to blanket all of the top blockchain platforms,” not just EOS and ethereum.
What’s more, he detailed that the company will in coming weeks release a data integrity bounty program in partnership with security firm HackerOne to help assure users the data they are reading via dfuse products is accurate.
“Many companies have built security bounty programs but this is about data integrity,” Ross said. “This is something we will be campaigning to increase the trust in our APIs and we will challenge the other players in the community to do the same thing.”
Justin Sun on shaking down the Internet, Coin Metrics on Kin’s blockchain activity and more
Crypto News – 26 June
Bitcoin breaches new resistances: In a sensational run that saw the coin surge by 15% over 24 hours, the world’s largest cryptocurrency breached the $12,000 mark, while also briefly touching the $13,000 mark, before falling again
Read more at https://bit.ly/2ZMkS10
Tone Vays on Bitcoin’s biggest strength: Tone Vays opined that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention
Read more at https://bit.ly/2RD2BjL
Tron Foundation launches new inititative: Justin Sun’s Tron Foundation announced a $20 million TRX buy-back plan to promote community activity and market stability
Read more at https://bit.ly/2X8aA9W
Joe Kernen on Bitcoin, Libra: The once crypto-skeptic, CNBC Squawk Box’s Joe Kernen is of the opinion that Libra is for corporations, while Bitcoin is for the people
Read more at https://bit.ly/31MkqSa
Bloomberg on JPM Coin: According to a report by Bloomberg, the Jaime Dimon-led institution plans to launch the JPM coin and use it for bond transactions
Read more at https://bit.ly/2X75DTr
Fundstrat report on stablecoins: According to a recent report by New York-based Fundstrat Global Advisors, the FS CryptoFX Stablecoin index fell by a whopping 21 percent against BTC, with Gemini outperforming Tether [USDT]
Read more at https://bit.ly/2X5qPJw
BitGo’s latest collaboration: Bitcoin IRA has announced that it will be teaming up with BitGo to launch crypto-retirement accounts insured for $100 million
Read more at https://bit.ly/31UvjBz