Recent Analysis (IOTA, XRB, Tether)

A lot needs to be clarified and put in perspective in regards to ‘crypto’ space which is fast being populated by kaleidoscopic projects with different scopes, backgrounds and aims.We can no longer compare apples and oranges and equivalate things from the easy stand-point of “satoshi’s true vision”, the mysterious Deus otiosus of blockchain and cumbersome rigidity of linear-sequential distributed blockchain ledgers, and apply that to everything.

At best, we can think of Bitcoin as the ancient bacterial spores in the ground who are just waiting for the plant kingdom to collapse so they can take evolution back again from times anaerobic.

Let’s talk a bit about IOTA. I should quote from this great hackermoon article that nails it thus:

In the following, I shall argue that the FUD against IOTA makes sense because IOTA itself is FUD!

IOTA is FUD because it causes:

  •  FEAR among those who can grasp IOTAs potential;
  • UNCERTAINTY among those who worry that if only half of what IOTA promises becomes true, they might be in a really bad position without it;
  • DOUBT among those who think they have a safe investment with their other coins and are now unsure whether these will be needed at all.

IOTA is currently quite closed-source having a Central Coordinator (called the Coo) at these initial stages of its infancy, and you should be glad about that, otherwise we would have had another DAO hack by now.

Furthermore, for those of you just getting into this space, it is not the developer and engineer’s responsibility to make one rich. This is your own responsibility of properly doing your own homework and research, learning how to sift through the avalanche of ‘fake news’, misinformation, and understand the different motivations and conflicts of interests involved.

To make it clear, neither is this a casino, but at the current state of affairs a battlefield would be a better metaphor.

IOTA will be fully open-sourced when the network reaches the necessary critical mass of trusted nodes and honest actors to be stable and self-sufficient enough. The problems IOTA is tackling require utmost responsibility.

The two huge projects out there which involve Artificial Intelligence are IOTA and ICON. David Sønstebø background is in Artificial Intelligence, which explains quite a bit. Vitalik Buterin puts it quite eloquently in his Medium post entitled “Why Cryptoeconomics and X-Risk Researchers Should Listen to Each Other More”:

“Both the cryptoeconomics research community and the AI safety/new cyber-governance/existential risk community are trying to tackle what is fundamentally the same problem: how can we regulate a very complex and very smart system with unpredictable emergent properties using a very simple and dumb system whose properties once created are inflexible?”

Now a bit around the ‘hype’ and FUD around RaiBlocks (XRB). Due to BitGrail’s abominable behavior of what seems like an attempt to ‘exit scam’ the community has promptly responded by bringing forth a class action suit.

Another often heard criticism of XRB is that “their team is small.” Yet, truth be told, they don’t need too big a team for “do one thing and do it right” — matter of fact, as somebody coming from a background and culture similar to the one RaiBlocks does, I’d argue that often quite the contrary is the case. IOTA, on the other hand, is in urgent need of as much staff as it could get.

Nonetheless, the community work being done around RaiBlocks is impressive, with Ledger Nano integration already released and quite a few vendors already beginning to implement it. Why? Because everybody is sick of chargebacks and tossing the ball of responsibility back and forth between merchants and banks and eventually, usually, on you. XRB solves those problems in an elegant and simple manner.

At the same time, we’re witnessing a major exodus from USDT and panic surrounding the ongoing audits. To be sure, the release of the audits has been postponed until 6th of December which is enough time to give them the pass of fixing any mess or wrong-doing.

Meanwhile, a more reasonable approach to Tether is being put in place on the Ethereum network, the functionality of which allows for something like this, as opposed to the very limited and rudimentary scripting language of the BitCoin network.

So, everybody, calm down and don’t panic.
It seems like if the ship goes sinking, there’ll be water for everybody anyway.

Martin Banov8 Posts

Martin previously studied Biology and Chemistry, but then ended up in the IT industry (things Infosec and cryptography related, often) and then a whole lot of other kinds of work across a number of different countries throughout the last decade (Czech, Israel, Taiwan..). As of the past 2 years or so have gotten increasingly obsessed with the cyclical/rhythmic behaviors of the markets, historical processes, and media studies/technology in a kind of Marshall McLuhan/Bruno Latour gist of looking at things.


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