September21: Crypto Notes

Bitcoin, Ethereum, Chainlink, Polkadot, Solana

Bitcoin: Store of Value digitally like Gold

1. Humans behaviourly value scarcity
2. Digital Scarcity: Human’s love to fuck with Scarcity because they have financial incentives skewed to do so.
3. Currency debasement is a technique used by central banks to set off debt/leverage created in the financial system
4. Bitcoin is scarce with a pre-detrmined supply curve - limited number 21 million coins
5. Unlike Gold, bitcoin is additionally a network and technology on internet which is divisible which makes adoption faster
6. Money at the end of the day is story/fictions we tell ourseleves and it only has if we as human collectively believe in it has value
7. Bitcoin also runs the risk of becoming nothing
8. As, digitisation of economic value spreads, Bitcoin 21 million units become hyper-scarce hence hyper valuable

Ethereum: Programmable money: Smart Contracts [Defi, Tokens and NFTs]

1. By owning Ethereum you own a part of the internet - it is the crypto rails.
2. Ethereum is a decentralized, global universal computer and is the most important crypto project Call it the “InternetComputer”.
3. Public blockchains are massively multiclient databases, where every user is a root user.
4. The community decides as a whole how to use compute, storage, applications, etc, not a small group of engineers and product people.
5. In a world where data is central to everything, whoever controls the data is king, and the current data lords make it hard to import or export it, to share it broadly.
6. Public blockchains enable shared state (think shared truth, shared control, shared internet ownership) by incentivizing interoperability.

“They convert many types of data import/export problems into a general class of shared state problems. And they do so in part by incorporating many of the best features of the mechanisms described above. - Balaji Srinivasan

Chainlink, Polkadot: Interoperability between Crypto networks

NFT - Non Fungible Tokens

Network Effects: Metcalfs Law: Network Adoption Curves

Building Blocks in any Blockchain

1. Which Layer Protocol
2. Circulation of Tokens: Mining Vs Airdrops
3. Proof of Ownership of Token
4. Purpose of Blockhain
5. Blockchain: mainnet vs testnet vs canary network [testnet + real economic value] e.g. DEV: testnet –> Kusama(canary) –> polkadot (mainnet)