Decentralization – Trade-off between Cost and Trust

Some fundamental questions of centralization vs decentralization have nothing to do with blockchains. Not even use cases. Centralized and decentralized processes have alternated for centuries based on trust, cost efficiency and scale considerations. For our business use cases, we equate trust with service levels. If an entity delivers to your expectation of service, you trust them. … Read more

Difficulty Measuring Blockchain Value Creation

Two years ago we set out in an effort to document public statements of value creation in blockchain projects. Our original intent was to provide a way to capture value stories from the hundreds of POCs announced at the time. After these years we learned a couple of important lessons 1. In public projects, promoters … Read more

Beyond the Hype – Always Stay a Dev

Most of the people who talk about blockchains, cryptos and tokens rarely address the underlying technology. Yet, the innovation is not the interpretation of the technology but the technology itself. Priding ourselves to be above the code will not help applying it for consumer and business applications. When I talk to blockchain advocates, especially on … Read more

Crypto Non-Correlation – Risk Reduction and Portfolio Hedging

I was talking to some colleagues advising clients on portfolio management and asset diversification. It came up in the context of most blockchain tokens and cryptos being uncorrelated to other asset classes like stocks and bonds. Correlation is one of the important metrics of portfolio construction as they help you avoid all your assets moving … Read more

Cyberinsurance Providers are Coming for Cryptocurrency Exchanges

A useful development around crypto exchanges is the emerging security breach insurance market. While data breaches are becoming a weekly occurance, the impact in loss of data is harder to quantify than the loss of crypto assets. In the past there were certainly breaches of the underlying blockchain protocol as it got more complex (Ethereum … Read more

What is the Economic Role of ICOs?

Our focus is primarily value creation in blockchain businesses. In that context ICOs are both promising and relevant. We view ICOs from an economic perspective as a crowdsourcing mechanism similar to Kickstarter and Indiegogo. You are getting a discount off the perceived value of an asset or good similar to discounted products in a crowdsourcing … Read more

Impressions from the Shanghai Blockchain Summit

China has always been a key player in blockchains being the largest in crypto mining especially Bitcoin and Ethereum. In addition it is the market with the most speculation behind price movements in the top altcoins. China also manufactures most of the specialized computers used for blockchain mining, IoT and for specialized processing (crypto and … Read more

Getting Beyond Conceptual Understanding of Blockchains

As Linux guys used to say the best way to learn a new tech is to read the code… Well, there are many who are technically inclined but do not have the time or inclination to learn smart contract programming in Solidity or other languages. There are 2 great resources to get you beyond blockchain … Read more