🤷 Opinions Katya Michaels

Facebook Token: Can the Media Giant Disrupt Itself? Expert Opinion

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Facebook’s flirtation with Blockchain may drive mass adoption, but would that be enough to fix everything that’s wrong with the platform?
Facebook Token: Can the Media Giant Disrupt Itself? Expert Opinion

Facebook has been facing a great deal of pressure recently, both from the public and the US government, regarding its exploitation of user data. In the aftermath of Mark Zuckerberg’s Congressional hearing, decentralized platforms have been seizing the opportunity to capitalize on Facebook’s failures and deceptions, highlighting the advantages of storing personal data on the Blockchain.

Friday’s news of a possible Facebook token launch may have a dramatic effect on the scenario of centralized social media disruption. One of the major issues faced by Blockchain startups and decentralized platforms is the rate of adoption – and if Facebook can beat potential competitors to the punch, it could retain the social media hegemony that decentralized network supporters hope to dissolve.

A rising tide lifts all boats

Some members of the community reacted to the news with enthusiasm. Mick Hagen, CEO and Founder of Mainframe, a decentralized communications protocol that has recently been in the spotlight with ambitious and creative airdrops throughout Asia, believes Facebook’s access to a two billion audience will promote worldwide exposure to cryptocurrency and Blockchain technology. Hagen commented on Facebook’s move toward tokenization:

This is a really exciting development. It further validates that blockchain technology is here to stay. They are disrupting themselves before someone else – it's smart... This will bring a lot of new movement and momentum. A rising tide lifts all boats – this move from Facebook will help the entire ecosystem grow.

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Not even Facebook can deny the power of decentralization

Others are more cautious, given Facebook’s history with user data and the fundamental differences between decentralized and centralized networks. Bill Ottman, CEO and Co-creator of Minds.com, a crypto social network that has been a harbor for disillusioned Facebook and Twitter users since 2015, is doubtful that Facebook can adopt Blockchain in its true sense.

Facebook's blockchain application will only have any potential value if it is fully free and open source software (which it really can't be unless Facebook open sources all of their code), has fair token economics and exists on a truly decentralized blockchain as opposed to a more centralized one. In reality, blockchain itself will never fix Facebook's deep underlying unethical practices. A total corporate and techno overhaul would be required, and even that can't fully undo the damage they've already caused.

At the same time, Ottman recognizes that Facebook’s move to get onboard with Blockchain shows the growing power of free software and the decentralization movement.

At the end of the day there's room for a diversity of dApps and the best will inevitably rise to the top.

Two roads diverged

If Facebook could give its two billion users the advantages of a true decentralized Blockchain economy on a platform that they are already using, it might have a chance of beating decentralized social media at its own game and fueling worldwide adoption of the technology.

On the other hand, it may turn out to be a case of “teaching an old dog new tricks,” or worse – “a wolf in sheep’s clothing,” adding to the misunderstanding of and disillusionment with Blockchain technology by the public. Only time will tell which scenario will come to be realized.

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Ripple 2018: Price and Telegram Mentions. What’s Driving What?

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Both soars and dives in the price of Ripple lead to its increased mentions on Telegram
Ripple 2018: Price and Telegram Mentions. What’s Driving What?

Ripple (XRP) has been in the limelight of late, from talks about Ripple wallets to discussions about why this cryptocurrency cannot actually be mined. In spite of currently standing at only about 50 US cents a pop, XRP remains the third most influential cryptocurrency by market capitalization with close to 19 billion US dollars, following Bitcoin and Ethereum. Furthermore, XRP is also among market leaders in terms of its social popularity on Facebook.   

Recently, we have looked at some of the overarching stats pertaining to cryptocurrency mentions on Telegram. Now, having gathered a substantial amount of data that corresponds to the January 1 - October 31 period, i.e. two months shy of a full year, it is time to see how these affect Ripple, and, more specifically, how XRP price and its Telegram mentions may be linked:

XRP 2018

In the graph above, the horizontal axis represents time, and the vertical axis is a relative scale that corresponds both to number of Telegram mentions (in blue) and XRP price (in red). Evidently, what can be seen, for the most part, is a picture of the two lines following each other’s trajectories, with the emerging pattern being a clear correlation of the two variables. The remaining question is which variable is independent and which is dependent, i.e. which one determines the movement of its counterpart.

Given that multiple factors go into price formation, it is far more likely that the changes in XRP value are determined irrespective of most activity on Telegram, though not necessarily entirely without it at all times. In contrast, one could successfully argue that changes in XRP price often fuel XRP activity on Telegram. Interestingly, this correlation is both positive and negative: when the price of Ripple goes up, so do Ripple mentions on Telegram; similarly, when the price of Ripple goes down, the number of Ripple mentions on Telegram also increases.

Since Telegram is thought to be one of the safest messaging apps around, it is plausible to assume that XRP owners use Telegram to discuss trade scenarios with various potential buyers and sellers or seek investment advice from other XRP owners. For those who wonder why the blue line crosses the red at one point, the suggested explanation is as follows: this very sharp spike in XRP mentions on Telegram is likely determined by the fact that Ripple saw a sudden increase in its price in the autumn after a relatively long period of summer stability. No doubt, this was seen by many as a big opportunity to transact business in quite some time, which subsequently resulted in the number of XRP mentions on Telegram going through the roof.

Stay tuned for more and be sure to check out this week’s crypto report by our expert trader, Vaido Veek, based in Estonia.

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Playing Nice With Government: Expert on Google’s Cryptocurrency Ad Ban

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Google’s cryptocurrency ad ban draws criticism from the crypto community, but what are the mechanics behind this decision?
Playing Nice With Government: Expert on Google’s Cryptocurrency Ad Ban

 

Google’s announcement of its decision to ban advertisements related to cryptocurrencies comes just a couple of months after Facebook announced a similar ban. While there is disagreement to the extent these steps will affect the cryptocurrency market, it is impossible to deny the Duopoly’s influence on millions of consumers. CryptoComes asked Ian Wishingrad, founder and creative director of the BigEyedWish creative agency specializing in branding and digital development, to comment on the causes and implications of Google’s policy change.

Ian Wishingrad, founder and creative director of the BigEyedWish creative agency

Smart move

CryptoComes: Google’s decision to ban cryptocurrency-related advertisements comes on the heels of Facebook’s similar announcement. What is your take on this?

Ian Wishingrad: I think it’s a smart move, and it makes perfect sense because their biggest issues right now are brand safety and reputation. It would reflect very poorly on them if people get scammed or do fraudulent things via crypto on their platforms.

Until there’s a little more clarity and it’s less dark, mysterious and potentially treacherous, the risk does not outweigh the reward considering their total advertising revenue.

Competing against the government

CC: Given the publicity issues that Facebook and Google have faced with fake news and questionable ad placement, one might ask: with seeming laxity of regulation in such aspects, why are these platforms picking on cryptocurrency?

IW: Well, it’s just bad luck for crypto. What’s happening now is precipitated by those concerns. These companies got their hand slapped and have seen the backlash, so now it’s not worth the risk. That’s the biggest issue when you are an open platform- when your business is built on advertising revenue, you need to consider the ramifications for brand safety.

Facebook, Google and Amazon all carved out their unique spaces in the market, but they are really competing against the government.

Exercising a certain amount of self-regulation and self-policing will bode well for them in the long run because if the government intervenes, that’s going to be much more painful than anything they inflict on themselves.

Cryptocurrency will be back

CC: Google is often seen as being close with the “establishment.” Could this decision be construed as another expression of that?

IW: One hundred percent. I don’t think they even disagree with that. They are operating as a United States company, governed by US law. You can be all cowboy and Wild West when you’re small and under the radar, but once you are a publicly traded company and one of the most powerful companies in the world, you have to start playing nice with the government.

As advertising dollars shift from television to online, it’s really difficult to police user-generated content. For Google and Facebook, the crypto industry it’s too nascent, there are too many bad players.

Once the area matures, I’m positive cryptocurrency will be back on these platforms.

CC: Often when new technology emerges, it is publicly represented as a maverick, a representation of freedom, of independence from regulation. Google was perceived this way in its time, but it seems that now Blockchain represents that maverick freedom, while Google represents the established structure.

IW: That’s exactly what is happening and what will happen. If you become successful, you become the establishment, and by virtue of becoming the establishment, there is a space wide open for the next players.

Self-regulation

CC: How will these bans impact the cryptocurrency market? Will it be destructive, or will it help weed out fraudulent players?

IW: Right now, we are separating the wheat from the chaff very quickly. All the mavericks, the pirates, the innovators- everyone wants to crack this.

Now, it’s going to come down to execution, securitization, government approval and finding the right way to play with the SEC.

I think we won’t be surprised by the people who come out on top- smart, with the right capital, the right public relations and understanding that it’s not just what you do, but how you are perceived.

CC: You mentioned the motivation for Google’s self-regulating approach. Meanwhile, the Winklevoss twins’ Gemini exchange announced the creation of a self-regulatory organization. Is this indicating a general trend? Will there be more self-regulation initiatives?

IW: I think there will be two things: the perception of self-regulation, and the actual self-regulation. The people that are ahead of the race are going to want to behave like the establishment, show that they are mature adults, exercise self-regulation because it’s really the most prudent move. It pays to play nice. You don’t want to make the government your enemy.

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Institutional Investment in Crypto: Interview with LGO Markets’ Hugo Renaudin

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Crypto exchanges have to combine technological innovation with regulatory compliance to attract institutional investors
Institutional Investment in Crypto: Interview with LGO Markets’ Hugo Renaudin

As the cryptocurrency market expanded dramatically in the past year, institutional investment has become the elusive white whale of the crypto space, potentially capable of transforming the entire industry. However, a number of conditions have to be met before that becomes possible – namely, a clear regulatory framework and platforms that take steps to comply with those regulations.

The Legolas exchange, founded in France and based in New York, is launching a specialized platform for institutional investment, LGO Markets. The new platform aims to combine aspects of traditional financial exchanges with security innovations that Blockchain technology can provide. CryptoComes spoke with Hugo Renaudin, CEO of LGO Markets, about the prospects and implications of institutional investment in the cryptocurrency market.

Crypto regulations and attitudes in France

Katya Michaels: Different countries are in very different places right now in terms of cryptocurrency regulations. Where does France fit on a scale between a crypto-friendly environment like Malta on one end, and the US on the other?

Hugo Renaudin: I would say France sits in the middle. The framework for ICOs is pretty smart now – there is a license that you get. If you are a startup and you don’t have that license, you are forced to communicate that to the buyer.

What’s difficult when you have a crypto business is to have a bank that supports your operations and allows you to sell cryptocurrency to fund your account. For various reasons, a lot of banks are a bit cautious about that, and the regulator which is regulating the banks is not the same as the regulator that’s regulating the ICOs. Everyone is not on the same level, but still I think the regulating bodies are pretty open to innovation in this space.

KM: In terms of the general attitude from the government, the academia and the entrepreneurial community, is there a lot of enthusiasm for cryptocurrency in France?

HR: The government is definitely business friendly, but France is not a country with the highest adoption rate when it comes to technology. Even though we have a lot of entrepreneurs, French people tend to be a bit cautious. A lot of people are definitely looking at it.

We have a high level of scientific culture in France, a high scientific awareness. People look at projects in a very technical way and there is a lot of criticism for those that raise a lot of money while not being at the proper technical level.

However, the French community is enthusiastic about entrepreneurship in general, and the cryptocurrency and Blockchain space in particular.

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KM: What is most different or most surprising for you in the US fintech system as compared to France?

HR: The first thing is the scale of the American financial system is so much bigger than the French one. Something that’s not surprising, but different in the US, is the strength of the SEC. The AMF (l’Autorité des Marchés Financiers) is by no means as strong as the American regulator. The SEC is super powerful and it’s super important to be very compliant with them.

There are more different types of actors here – small businesses and financial companies, more small firms, small brokers, small banks. There’s a multiplicity of actors in the financial world in New York – less of that in France, just because the market is smaller.

Another thing is that traditionally the financial industry in the US is more open to adopting new technologies such as cryptocurrency. The financial markets for Bitcoin are likely to happen first in the US and only then in France.

Specifics of institutional investment

KM: You’ve said that LGO Markets is a next generation crypto exchange – what does that mean? What does it introduce that hasn’t been done before?

HR: We are not reinventing the wheel here. If you look at the cryptocurrency exchange ecosystem, it’s done in a very strange way. The architectures of a cryptocurrency exchange and a traditional exchange, like the NASDAQ or New York Stock Exchange, are very different.

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Crypto exchanges like GeminiCoinbaseKraken, and Bitfinex have millions of users, millions of direct connections. This means a huge risk in terms of security, huge problems in terms of KYC and AML, and in terms of custody it makes it impossible to segregate the funds.

These exchanges have all the funds aggregated in one big bank account that belongs to the exchange.

Effectively, cryptocurrency exchanges are not only exchanges, but also custodians. This doesn’t make any sense from a traditional financial perspective.

Exchanges should not handle the custody risk on behalf of their clients, and clients should not trust exchanges to hold their funds.

When you look at how the NASDAQ stock exchange is structured, they have a lot fewer clients, maybe hundreds or thousands, not millions. These clients are all institutional – brokers, market makers, funds. They are all regulated. They have their own clients as well, but there are very few direct connections to the exchange.

Because of that there is less security and KYC/AML risk. You can open what’s called a brokerage account, which belongs to the client and allows them to trade on the exchange. That’s the setup in the traditional exchange space. Exchanges are not custodians in the stock and equity world.

We take this architecture, which exists in the traditional financial markets, and we apply it to the cryptocurrency asset class.

As I said, we are not reinventing the wheel, we are just taking the same old model that works very well in the equity world and applying it to the cryptocurrency space.

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The architecture is not an innovation per se, but the way we handle custody is. We do not store cryptocurrency for our client. Instead, we designed a client wallet that can be thought of as a brokerage wallet. If you hold Bitcoins in your personal wallet, you can send those to the brokerage wallet and use them to trade.

In terms of technology, it’s a two out of three multi-signature wallet. That means there are three keys that exist, and you need two of these keys to initiate transactions. That itself is unusual and something that exists on our exchange only. In terms of custody, we are the only exchange that allows our client to hold their Bitcoin.

Another innovation is on the price discovery. When we built LGO, there was a lot of media coverage about cryptocurrency exchanges manipulating the price. Many people believed that they had been front-run by exchanges, that the price had been manipulated and that they lost money because of it.

We use Blockchain technology to actually prove that we do not manipulate the market. We get orders from our clients, send those orders to a Blockchain, wait for it to be validated, retrieve it, feed it into our system and then we trade.

Our clients can check that their order has not been erased, has not been front-run, has not been manipulated. We guarantee the transparency of the price on our exchange.

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Evolution of cryptocurrency exchanges

KM: Many crypto exchanges are striving to become part of the established financial system However, as they become institutionalized, do you think that crypto exchanges as a form will still have a rationale to exist?

HR: It’s a very interesting question. We see cryptocurrencies as a financial asset and we treat them as securities in our operations. It’s all about processes and technology. I think that cryptocurrency exchanges that exist right now don’t have the architecture which is fit for the institutional world. Those will likely disappear or stay at the retail level. That’s not to say that crypto exchanges which are geared toward the institutional investor, like ours, will disappear.

Holding cryptocurrencies is not the same as holding securities – there are technological issues which can be a barrier to entry for traditional stock exchanges. You have to marry both worlds.

KM: What are some of the specific features that institutional investors are looking for in a crypto exchange as opposed to retail?

HR: First of all regulation, so that institutional investors can trust the exchange. The second thing is custody. As an institutional investor, you are managing your clients’ money and you are required to prove that you are managing the risk of how you store money. This custody aspect, the way the funds are stored, is super important for institutional investors. Price transparency is essential as well, because you need to show your clients that you are giving the best price.

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KM: What are the implications of institutional investment for the market?

HR:

Institutional investment will tremendously increase the market capitalization of the whole asset class with additional inflows. It’s going to change the volatility because there will be less panic trading.

With professional trading, there is strategy and it is more rational. So, I also think that all the bad assets, the bad coins, those that have no rationale behind them, those that are scams  – will get sorted out eventually.

The future of crypto investment: lessons learned

KM: Some ICOs like Tezos, though backed by real technology, can face post-ICO issues with internal conflicts. Do you think this is a typical conflict that we are likely to see a lot?

HR: I think the Tezos conflict is not going to happen again. First of all, the setup of the ICO with the Swiss foundation was crazy. You don’t need to do that anymore – you can do an ICO in France, or in other countries. In terms of the structure of the ICOs and the legal context, it’s getting more rationalized now, although it doesn’t solve the issue of governance in the crypto space.

You have to think of it as Internet 1996-97.

The industry is not where it can be yet. There have been a lot of bad projects, there will be a lot of bad projects. The question is what we learn from the mistakes.

With Tezos we learned that the setup was absolutely crazy and a tech company doesn’t need that much money.

These are healthy problems because in a way they allow you to cure the whole ecosystem Those are mistakes that will never be made again.

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KM: Given what you’re working on, you must believe that clarifying regulation and compliance is a necessary step forward for the cryptocurrency space. In general, what conditions in a country ensure that it can stay on the forefront of innovation?

HR: The most important thing is to give a clear definition of what cryptocurrency is and create a regulatory framework. It’s very difficult for institutional investors to buy Bitcoin or any other cryptocurrency for this simple reason – they don’t know in which regulatory “box” it belongs.

It’s about being smart – allowing new actors and favoring them to enter the market, punishing bad actors, helping good actors to build their product and ease their regulatory burden. There is a lot of value to be made in the space, in terms of jobs, in terms of wealth creation for individuals and society as a whole.

It’s tough because sometimes regulators don’t fully grasp the whole technological aspect. They often stop at the fact that it was used on the dark web, used for money laundering.

KM: Sometimes it’s difficult from the other side as well, because in the crypto community there is a feeling that it was created to be regulation free.

HR: Sure, but if you want Bitcoin to have an economic reality, you need to be pragmatic about it and you need to somehow let the regulators find a good framework. Because if Bitcoin is only going to be used on the dark web and things like that, it will never be a reality. If you want Bitcoin to be widely used, then you need to validate it with countries and legal authorities.

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Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever

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While some may claim that Bitcoin’s reign is over, here we explain why it cannot possibly be the case
Bitcoin Not Going Anywhere: Its Computing Power as Awesome as Ever

Bitcoin’s price is now at around 4000 USD, the lowest figure in over a year, showing a sharp decline of 1500 USD only in the last three weeks. Some claim this is Bitcoin’s finale at last. They are dead wrong. And here is why.

Blockchain vs. Crypto

What must be made clear is that Bitcoin is a cryptocurrency, but more importantly, it is also a Blockchain. What’s the difference, some may ask? Well, a substantial one, in fact. While one (i.e. a crypto coin) depends on the other one (i.e. a Blockchain) for its very existence, they are not the same, and one does not necessarily imply the other.

Some companies might have their own Blockchain platforms but not have their own cryptocurrencies as such. Take Tether, for example, which is the eighth biggest cryptocurrency in the world by market cap and the second most traded one after Bitcoin. While Tether, indeed, has its own Blockchain, technically speaking, it lacks an own crypto coin in a true sense of the word, as its token USDT is a stablecoin pegged against the US dollar, which gives it a fixed value.

So, in actuality, while Tether is the biggest player on Bitfinex for all crypto to fiat exchanges, and it uses its own Blockchain to execute business, at the same time it relies not on its Blockchain but rather on the US Department of the Treasury and the Federal Reserve to provide value for its token. It is, therefore, a major Blockchain player with a hypothetical digitalized fiat currency.

In contrast, take Maker, for example, whose digital currency is the second most valuable currency in the world today after Bitcoin in terms of price. Apart from also having a USD-pegged stablecoin Dai in order to fight off volatility, Maker’s main crypto unit is its altcoin MKR, which is an independent cryptocurrency in its own right, and an expensive one at that. Be that as it may, Maker doesn’t have its own Blockchain: it is using Ethereum’s. The same goes for Electrify.Asia and its token. So, there are plenty of companies with their own cryptocurrencies that have no Blockchains of their own.

Bitcoin’s True Power Revealed

Now that we’ve made it clear that Blockchain and cryptocurrency are not one and the same, let’s look at Bitcoin again. While its current price is down, its Blockchain is as strong as ever. In other words, Bitcoin the crypto coin may be in decline, but Bitcoin the network is doing just fine. How fine exactly shows the graph below:

image

In order to move external data onto a Blockchain and form blocks, cryptographic hashing is used. It is a computational process of converting information into an arbitrary 256 character output, with one single output being equal to one hash. TH/s refers to one trillion such hashes per each second of computation. And as the graph reveals, Bitcoin’s average for this month is around 47 million trillion or 47 quintillion hashes. This is the number:

47 000 000 000 000 000 000 of 256-character hashes every single second.

This is a staggering figure by any standard. Bitcoin’s Blockchain is extraordinarily powerful, undoubtedly so. Yes, there is a drop from September’s and October’s averages, which were roughly 51 quintillion hashes per second. But Bitcoin’s hash rate today is as good as the one from this August; in fact, it is three times higher than the figure from this January when Bitcoin’s price, let’s not forget, was more or less at its all time highest. So, right now the price is down… but the power is way up.

Conclusion  

To make things even more straightforward, let’s use a simple analogy. A Blockchain can be considered a stadium where a game is played, whereas a cryptocurrency is the actual game. This game can be a game of football (coin A) or rugby (coin B) or, say, polo (coin C) or anything else athletically appropriate, and it can be played on any stadium whose size and specs fit, i.e. on any suitable Blockchain.

Likewise, a stadium can have its own team playing a game on it (own cryptocurrency), or it can be rented out to other teams for their games (e.g. external tokens on Ethereum), or there might be a game with the constant score of 1:1, such as with stablecoins… or there might even be no active game at all, in theory.

The main point here is this: Bitcoin’s game may be down at present as its team is going through some rough times due to injuries and whatnot. However, most certainly, its stadium is a humongous architectural marvel. Granted, never say never, but, in all likelihood, this gargantuan structure is not going to be demolished any time soon. Bitcoin with its vast digital infrastructure is here to stay.

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EOS’s Ricky Shi: Could Governments Hold EOS by the Balls? I Don’t Think So

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Could governments hold EOS by the balls? EOS block producer shares his view on the future of the platform
EOS’s Ricky Shi: Could Governments Hold EOS by the Balls? I Don’t Think So

EOS, fondly referred to as Ethereum on Steroids, is tipped to emerge as one of the leading cryptocurrencies in the nearest future.

Ricky Shi, co-founder of EOS Cannon, gave us an exclusive interview touching the base on EOS approach to governance, the role of Block.one, building EOS community and ecosystem,  and the perspectives of  EOS.  

A string of positive news is making EOS and EOS-related tokens a good investment. Founded in 2016 by Brendan Blumer and Daniel Larimer, EOS worked with Michael Novogratz and a known VC investor Christian Angermayer.

Recently Peter Thiel, a business partner of Angermayer and Bitmain’s founder Jihan Wu participated in the new fundraising round of the EOS backbone Block.one.

So far, EOS has been the basis mostly for development tools and some simple games. Nevertheless, the potential of this system is widely regarded as pretty high. For example, KickCoin (KICK), an ERC20 token for a crowdfunding platform, went up the charts when rumors hit the crypto market that the company negotiates with EOS Block Producers its possible migration from Ethereum to EOS.

EOS approach to governance

CryptoComes: Critics often say that EOS is not, in fact, a decentralized network, but subject to control by something akin to a government. They specifically mention the recent decision by the EOS centralized body to ban transactions from the specific 27 wallet addresses. What would you respond to the critics?

Ricky Shi: Well, there is not anything akin to a government, otherwise it won’t take some long and so many community calls to make a collective decision to freeze these accounts.

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CryptoComes: How will you describe the EOS approach to governance, on a scale between a totalitarian state and the complete anarchy?

RS: I would say 6, but right now 4. A few important governance pieces are not yet fully functional.

CryptoComes: Do you have a closed telegram group for 21 block producers or some similar venue for communication and making decisions?

RS: There is a mainnet BP telegram with 415 members if that is what you mean. There are weekly calls among top BPs to discuss and make decisions only related to BP part of duties.

Role of Block.one

CryptoComes: What is the role of Block.one now? What happens if some producers will join forces to challenge the principles ingrained by Block.one into the system?

RS: Block.one is one of the important contributing community members. Anyone can propose different ideas, but you need to get your voice heard, discussed and agreed upon (by vote, not by Block Producers) before there will be a change in the system.

CryptoComes: How big is the community you are working with? How will you describe it?

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RS: 2,000+, a very active elite group with a deep appreciation of EOS principles and are all believers in EOS vision.

CryptoComes: What are your major principles in working with your community?

RS: The principles are simple: community first, tier by proof of stake, free will & free to join, communication & daily coaching.

Preventing losses

CryptoComes: According to recent research, theft in the crypto industry is booming, with the volumes stolen this year times exceeding similar numbers in 2017. Can EOS tactics of fighting them be described by the words “scar them out”?

RS: Not exactly sure about the term. EOS has some design to prevent such loss. As for the EOS Cannon community, we coach our members to use the safest approach and developed our own version of offline wallet tools.

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CryptoComes: Could the principle of the delegated proof of stake and on the whole the EOS consensus mechanism change with time?

RS: IMO, there will be adjustment at implementation level, but not in the principle.

CryptoComes: Are you a pragmatic or a moralist yourself as it comes to the community principles? Moralist means the man or principles, such as decentralization, and pragmatic is a person who may be more flexible if circumstances require immediate action and the principles stand in the way.

RS: I think I am a bit of both. Maybe more towards moralist a bit when a critical situation doesn’t demand an immediate pragmatic approach to resolve.

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Still great experiment

CryptoComes: Nick Szabo insists that the centralized aspect of EOS leaves the project vulnerable to attacks and security holes. Some say that by having or introducing centralized bodies, crypto platforms are bound to become more vulnerable to hostile regulation. What would you say to that?

RS: Then what would he say about the current government system we all live in? As for the more vulnerable part, I think we will see how it goes.

It is a great experiment in mankind history after all.

CryptoComes: Related question: governments now can hold big exchanges by the balls. Could big exchanges, in their turn, could have EOS by the balls? Meaning that governments will eventually control EOS?

RS: Big exchanges are centralized. EOS has dPos and quite dispersed geographically. I don’t think so.

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EOS voting

CryptoComes: What, if anything, needs to be changed in the EOS voting system?

RS: You probably need to be specific on voting for what. Quite a few parallel efforts are carried out related to voting. If you are talking about BP voting, it is currently working, except we need more voters participation. If you are talking about how many votes per EOS, that is still an open discussion as of now.

Dethroning Ethereum

CryptoComes: When do you think EOS will dethrone Ethereum, or it’s not on the current agenda?

RS: I don’t have a comparison or agenda there. Let us stay focus and make EOS better.

CryptoComes: With the lack of regulation, are the smart contract-based platforms simply preposterous for now?

RS: I don’t think so. It is in its infancy and needs time to evolve and mature.

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AI and the future

CryptoComes: What is the place for AI and machine learning in future decentralized networks?

RS: IMO, it will be a natural marriage. But hold onto that idea before we have the supercomputer running at its full speed.

CryptoComes: What do you think of the future of EOS?

RS: Bright, promising and it is just the dawn!

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