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AceVentures

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@AceVentures I need your expertise on Lukso. I've considered throwing in some eth, but before I do that there are some things I must understand. Personally, I found both the lightpaper and the whitepaper quite disappointing. Aside from introducing Lukso as a domain-specific blockchain, I couldn't find much about any new technical advancements compared to for example Ethereum.

That said, as a domain-specific blockchain focusing on NFTs, they have a goddamn mighty advisory board. That alone may be enough for LYXE to currently be undervalued, but then again I also see Ethereum 2.0 as a very strong competitor as ETH 2.0 fees will be much lower compared to today's fees. Due to how it's branded, I definitely can see Lukso succeeding in capturing many high profiled companies (as they already seem to be doing).

I want to know what technical advancements Lukso will provide that Eth 2.0 won't. So, my question: can you point me in the right direction, so that I can read up on the technical details of Lukso?

GitHub repo until dev team/Fabian posts medium articles breaking down the architecture more.

Here is the big picture:

Every executable line that goes to the Geth engine needs to be processed. Gas is used for computation. Think about JavaScript as an example vs an EVM - it has a call stack (mempool), a heap with stored memory (blockchain + user input), and a ticker.

What LUKSO is building is an ETH2.0 EVM, before ETH2.0 goes live. In addition to PoS for faster throughput, the LUKSO orchestrator, in conjunction with the validator node, call stack, and PoS ledger, can tick faster using a set of standards and tooling with more pre-built functions than existing standards.

Think about a JS class like the DOM. This object has so many goddamn pre-built methods and inherits from many other classes. Think about the new tooling and standards on the LUKSO engine as specific JS classes built and optimized for certain functions designed for the use and engagement of identities, fashion, ecommerce, gaming, etc.

I cast a broad net of possibilities, because what is enabled inside the smart-contract, or the method it inherits, is an executable function INSIDE the contract. This paves the way to dynamic smart-contracts with a whole host of *new ways of interacting.

Trying to use existing tooling and standards on ETH for the same functionality enabled by LUKSO's standards would be incredibly gas-consuming AKA computationally taxing.

That is the big picture and the extent to which my technical sensibility has allowed me to conceptualize.
 

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AceVentures

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Another important consideration for everybody out there: an EVM can be it's entire own economy, as evidenced by BSC and other emerging side-chains.

There can exist a massive domain called ETH that uses an EVM.

There can also exist many other domains and networks called XYZ that also use an EVM.

The technology underpinning the network is simply a computer - and the computer is open-source.

Any EVM could come out with it's own standards and build a massive network.

Just like anybody can pick up JavaScript and the host of open-source tooling to create a brand new social platform with it's own unique value proposition. They all benefit from and use the same infrastructure, similar to how many web2.0 software benefits from JavaScript + OS tooling. This does not mean the FIRST project built using JavaScript is the best one.


I reckon with the tooling and blockchain abstraction functionalities that comes with the LUKSO EVM, it can onboard many many users to its network by turning everything into a web2.0 format paired with relay networks that manage back-end operations against the ledger.

The network size and distribution is a key indicator to the success of these other economies, and UX is the main bottleneck towards network growth. Incentive structures and monetization routes are all there. What's missing is identities and an abstraction of the current rails for ease of use of the masses.
 

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I've known veterans in this space that got hacked and their wealth drained. Nobody is immune to getting wrecked.

Always store in your own hardware wallet. Not on an exchange, not on a metamask account, but on your own hardware wallet.

Your hardware wallet can connect to metamask, and dapps used the same way. But this way, no tx can be executed unless you first sign the tx on your device.

The blockchain user experience will change for the better as we move forward, and blockchains like lukso will help in abstracting keypair management. But for now, hardware wallets are your safest bet.

These are the most important baby steps you make in this space. Do not ignore this fundamental step.
Thank you, @AceVentures. Regarding the hardware wallet, since I am in the beginning, was looking at trezor Model One. I did not find out how can you store Lukso on them, because it does not appear in the supported coin list (also at the model T does not appear). In my researching, someone told that you can transfer LUKSO to your ETH wallet. Do you guys know if it is real? Can you store them in a ETH wallet? If you can, how can you make the difference between your ETH and Lukso on your ETH wallent?

Also, I wanted to ask you if this is the process or I am doing something wrong. So, for example, you want to buy ETH from Kraken.

You pay a fee when you buy it, you also pay a fee when you want to transfer it to your wallet and you also pay a fee when you want to swap with LUKSO, for example. Is this how it is? With all these fees at every single move or I am missing something?
 
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AceVentures

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I wrote this in the NFT thread but I know this thread has many more visitors. I still wanted to reshare here because this mental model has really helped me understand this technology better and I believe it might help others here too:

What is the creator economy? What is the social economy?

They are simply a set of words we are using today to encapsulate the big idea which is human interaction.

Human interaction is what allowed us to understand one another and cooperate, form tribes, to look after and feed one another, to learn about the world from each other and to expose ourselves to more and more beautiful renders of this experience.

With the advent of the internet, our ability to communicate with one another saw an exponential gain in efficiency, connectivity to the massive global human network, and the ability to iterate on ideas and converge to a majority consensus at faster and faster rates.

Crypto, is another word. It's used today to describe cryptographically secured transmissions of programmable data on blockchain networks. Phew. Fancy set of words. Only because it hasn't been simplified yet...

When we communicate our innermost experiences using a pre-defined language, the basis for communications lends itself to inefficiencies from the get go.

Here's another mental model for the internet, or crypto, that I like to think about:

Communication: you can currently make sounds with air, send frequencies of vibrations across different mediums, to get to your listeners ears, and hopefully translated despite what the other person's relationship with those words might be.

The internet: an emergent form of communication that sends "vibrations" of the entire collection of your communication across different mediums, to get to your listeners receiver device, and translated precisely as you wrote it, or painted it, or better yet showed it in a collection of moving images put together at 30 frames per second.

Crypto: an emergent form of the internet, and ultimately communication, that sends bits of code across networks of computers around the world, to encapsulate the entirety of the message you wish to communicate, but this time in an encrypted format. Your message is then decrypted by your listener, translated precisely as you wrote it, or painted it, or displayed moving imagesof, or this time, a message that is programmed to perform an automatic action upon interacting with your listener.

This, is where things get wicked. This new method of communication is the genesis of a brand new set of human interactions. Upon interaction with these "contracts" or capsules of programs, the network of participants trustlessly provides encrypted and verified services to the other members of this channel of communication.

This, we can think of as what our evolution of the idea of governance has manifested into. Because that is precisely what these networks, channels of communication, would be doing: allowing verifiable, uncorruptible encapsulation of human interaction, accessible by all who tune into this channel. How these chanels operate, can also be determined by those who tune into the channel. So if a channel seems to be producing weird signals, you can change the channel you're on into a more honest network, with more honest validators and participants, as can be evidenced by the performance and sustainability of the network (you can use mathematics to quantitatively model performance).

Guys I want you all to think bigger here - don't fall into narratives about what this stuff is. If it was a scam, if it was all just bullshit and a bubble, why is everything in the world seemingly converging to problems caused by human arbiters, and the on the other hand computer systems rapidly evolving to present alternate forms or communication that greatly reduce human arbitration bias from the rails?

There is beautiful synchronicity to that alone. Keep digging down the rabbit hole, there is much to see here.
 

Andy Black

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I wrote this in the NFT thread but I know this thread has many more visitors. I still wanted to reshare here because this mental model has really helped me understand this technology better and I believe it might help others here too:

What is the creator economy? What is the social economy?

They are simply a set of words we are using today to encapsulate the big idea which is human interaction.

Human interaction is what allowed us to understand one another and cooperate, form tribes, to look after and feed one another, to learn about the world from each other and to expose ourselves to more and more beautiful renders of this experience.

With the advent of the internet, our ability to communicate with one another saw an exponential gain in efficiency, connectivity to the massive global human network, and the ability to iterate on ideas and converge to a majority consensus at faster and faster rates.

Crypto, is another word. It's used today to describe cryptographically secured transmissions of programmable data on blockchain networks. Phew. Fancy set of words. Only because it hasn't been simplified yet...

When we communicate our innermost experiences using a pre-defined language, the basis for communications lends itself to inefficiencies from the get go.

Here's another mental model for the internet, or crypto, that I like to think about:

Communication: you can currently make sounds with air, send frequencies of vibrations across different mediums, to get to your listeners ears, and hopefully translated despite what the other person's relationship with those words might be.

The internet: an emergent form of communication that sends "vibrations" of the entire collection of your communication across different mediums, to get to your listeners receiver device, and translated precisely as you wrote it, or painted it, or better yet showed it in a collection of moving images put together at 30 frames per second.

Crypto: an emergent form of the internet, and ultimately communication, that sends bits of code across networks of computers around the world, to encapsulate the entirety of the message you wish to communicate, but this time in an encrypted format. Your message is then decrypted by your listener, translated precisely as you wrote it, or painted it, or displayed moving imagesof, or this time, a message that is programmed to perform an automatic action upon interacting with your listener.

This, is where things get wicked. This new method of communication is the genesis of a brand new set of human interactions. Upon interaction with these "contracts" or capsules of programs, the network of participants trustlessly provides encrypted and verified services to the other members of this channel of communication.

This, we can think of as what our evolution of the idea of governance has manifested into. Because that is precisely what these networks, channels of communication, would be doing: allowing verifiable, uncorruptible encapsulation of human interaction, accessible by all who tune into this channel. How these chanels operate, can also be determined by those who tune into the channel. So if a channel seems to be producing weird signals, you can change the channel you're on into a more honest network, with more honest validators and participants, as can be evidenced by the performance and sustainability of the network (you can use mathematics to quantitatively model performance).

Guys I want you all to think bigger here - don't fall into narratives about what this stuff is. If it was a scam, if it was all just bullshit and a bubble, why is everything in the world seemingly converging to problems caused by human arbiters, and the on the other hand computer systems rapidly evolving to present alternate forms or communication that greatly reduce human arbitration bias from the rails?

There is beautiful synchronicity to that alone. Keep digging down the rabbit hole, there is much to see here.
I think this a brilliant explanation. I’m getting a tiny glimpse of how big a deal NFTs are… as the next version of the internet (Web 3.0 as I’ve heard it described).
 

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Alright, I've been quiet in here lately, but this post got me to step up to the plate and discuss something that has been absolutely blowing my mind over the past several weeks.

I'll get straight to it, the project is OlympusDAO.

OlympusDAO is an algorithmic stablecoin with a real mind bender of a twist. In short, its long term goal is to become stable in value, but not necessarily price. However, in the meantime, its goal is to grow its treasury, and as such it is offering yield North of 100,000% APY to stakers of its native token, OHM.

Yes, you read that right, over 100,000% APY. Yes, I'm serious. No, it's not a ponzi scam.

"Yeah, I'm gonna go ahead and call BS. How in the actual?"

Trust me, this was my reaction too, but thankfully some prominent people endorsed it thus putting me in a dilemma where either these people I respected were turning scammy, or else there was more to it than was meeting the eye, so I decided to jump down the Olympus rabbit hole.

This is already getting a little long for modern attention spans, so I'll try to keep it as short as possible and focus on why this is not an outright scam. In order for one new OHM to be minted, it must be backed (note: not pegged) by one DAI. When market OHM trades above 1 DAI, the protocol can use the extra DAI to mint extra OHM (each again backed by 1 DAI), and then distribute them to the stakers.

If OHM were to trade under 1 DAI, the protocol would buy OHM at a discount since it knows that each OHM is backed by 1 DAI, so the protocol -- and thus the stakers -- still profit!

Currently, the protocol has enough runway to support these mental APY's for several months, so it makes sense that OHM is trading well in excess of 1 DAI, which of course only extends the runway further.

So there it is. If this turns out to be a total scam after all, I will publicly take the L. But that said, please DYOR and if anyone determines that this is indeed a scam, kindly let me know ASAP! :)

I am in Olympus DAO ( My best performing project so far) Wish I had invested more into it initially.

I plan to keep DCA'ing back into it.

Interesting and pretty successful experiment so far, I haven't invested that much time into understanding the bonding mechanisms beyond the official docs.
 

nitrousflame

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I am in Olympus DAO ( My best performing project so far) Wish I had invested more into it initially.

I plan to keep DCA'ing back into it.

Interesting and pretty successful experiment so far, I haven't invested that much time into understanding the bonding mechanisms beyond the official docs.
Awesome, love to see it!

Kinda funny looking back at my post saying I had less than 1% of my stack in OHM since now it has grown to over 10% due in large part to (3,3). Still my favorite project in the space. :cool:
 

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""Virtual currency-related business activities are illegal financial activities," the People's Bank of China (PBOC) said in an online statement Friday, adding that offenders would be "investigated for criminal liability in accordance with the law."

The notice bans all related financial activities involving cryptocurrencies, such as trading crypto, selling tokens, transactions involving virtual currency derivatives and "illegal fundraising"."

"This was "seriously endangering the safety of people's assets," the PBOC said."

Hey, People's Bank of China, instead of worrying about people's crypto and "safety". How about you deal with Evergrande? I think that is causing more issues to your citizens' assets than crypto.

TLDR; Crypto activities are banned in China.
 

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I saw that, thanks for sharing. I think other countries like the USA should go the opposite direction and win big. But politics are politics…
 

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828E72BB-B92C-4CBE-AB40-3D48E7249F45.jpeg
 

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AceVentures

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Got something very insightful for you guys today: How dApp Value Capture Will Distribute Across Decentralized Infrastructure

This piece is especially important for all to pay attention to. As this place builds, there are more and more "tokens" released which might distract the casual investor from capturing upside, which trickles down the infrastructure layer to the most important piece, which is the settlement layer (hence why I am so bullish on decentralized blockchains - the sale of valuable blockspace is a booming business, because value trickles down across the entire stack to the hands of block producers).

Will frankenstein some pieces together and highlight the bangers for y'all.

--------------------------------------------------------------------------------------------------------------------------------------------

1632863620399.png

Decentralized applications (dApps) are a new type of digital application built on blockchains. Unlike most Apps today, which consist of closed-source code running on centralized servers, dApps are open-source software running on decentralized networks

Instead of focusing on the benefits to dApp users (demand-side) or why cryptocurrency tokens exist, this article examines how value capture from dApps will be distributed across decentralized infrastructure (supply-side). In a simple sense, what functionalities do dApps require that come with costs, and what layers of infrastructure are best equipped to service those functionalities and capture dApp fees as a result?

[...]

Value Capture to Consolidate Within Four Layers​

Considering the various dApp functions required and the macro trends that will affect value capture, let’s look at how value capture may consolidate over a long time horizon across four primary layers.

Blockchains (On-Chain Function Layer)​

The first and most obvious piece of infrastructure that will capture dApp value is the underlying blockchain. Blockchains are likely to consolidate around providing the following on-chain functions for dApps:

  • Checking private key signatures for asset transfers between users, within a dApp, and between dApps.
  • Verifying validity proofs, fraud proofs, threshold signatures, and TEE attestations derived from off-chain computations and layer-2 networks.
  • Computing smart contract logic; more or less depending on the throughput of the blockchain.
  • Updating the state of smart contracts and storing calldata or real-world data on-chain.
In effect, blockchains can capture a portion of value from every dApp running on their network. This value capture is likely to come from very low-cost, high-frequency individual transactions on high-throughput chains and higher-cost, lower-frequency batched transactions on decentralized blockchains. Overall, the key for blockchains to capture dApp value is to support many successful dApps with active users.

[...]

Oracles (Hybrid Service Layer)​

The second and more misunderstood piece of infrastructure to capture value from dApps are the oracles performing trust minimized off-chain functions, referred to as hybrid services. Since blockchains create determinism through isolation (i.e., blockchains only keep track of internal state using internal data), they have no built-in capability to connect off-chain. Blockchains require oracles to interact with off-chain resources in a manner that preserves their determinism.

If the blockchain layer is akin to decentralized computers, then the oracle layer is like a web of decentralized Internet protocols.
However, oracles go beyond securely connecting disparate systems of value; they also supplement on-chain computations and off-chain resources by refining them. For example, oracles can provide scalability and privacy to dApp computations and bootstrap on-chain connectivity and reliability to traditional API services through data aggregation and staking. Notably, both of these refinement services require no changes to underlying blockchains or APIs.

dApps will require a wide range of hybrid services from decentralized oracle networks (DONs), including to:

  • Fetch data from external APIs and deliver it on-chain.
  • Relay smart contract outputs to external APIs like fiat payment systems.
  • Aggregate data to harden it against single points of failure.
  • Automate DevOps and smart contract maintenance functions (Keepers) like triggering liquidations, rebases, limit orders, yield harvesting, balance top-ups, etc.
  • Generate verifiable random numbers for provably fair on-chain randomness.
  • Perform scalable smart contract and data computation using layer-2 technology.
  • Generate privacy for smart contract computation and data.
  • Order user transactions according to a pre-defined notion of fairness to prevent frontrunning and harmful forms of MEV.
  • Operate cross-chain and proof of reserve bridges for wrapped tokens and tokenized real-world assets.
  • Serve as a blockchain abstraction layer to read/write data to any blockchain.
External resources capture value by dApps paying directly or indirectly for their data/services. Payments are made either off-chain using fiat currencies and traditional API subscription models or on-chain using the external dApp/network’s native token. Most dApps across all blockchains require some form of external data or computation, which almost always necessitates the use of oracles as a bridge between environments. These external resources can be quite crucial to the dApp’s success, particularly data and computation used in the dApp’s execution. As a whole, the value capture for external resources is relatively high. However, most external APIs are niche, so there are clear limitations to how much value any single external resource can capture from dApps.

[...]

External APIs (Off-Chain Resource Layer)​

The third piece of infrastructure to capture dApp value is the external APIs utilized by dApps. External APIs are defined as any system or network existing outside the dApp’s underlying blockchain that natively generates a unique form of value, whether that be valuable data or services. External APIs encompass centralized systems, blockchains separate from the dApp’s own, and on-chain dApps that are leveraged off-chain. So while generalized oracle networks provide gateways to external resources and refine on-chain/off-chain services, external APIs generate many underlying datasets and computational services that dApps want to access.

Some examples of popular external API resources include:

  • Data providers specializing in generating particular datasets, such as high-quality weather data or financial market information. The dApp can use this data through an oracle as an input to trigger the execution of its computation.
  • Cloud infrastructure offering advanced computational capacities like high-performance machine learning algorithms and integrated IoT networks. The dApp can leverage cloud systems to process raw data, which is then relayed on-chain by an oracle as an input to trigger smart contract functions.
  • Global payments infrastructure providing fiat payment rails and access to large customer bases. dApps can use traditional payment gateways to settle transactions off-chain in local fiat currencies.
  • Storage solutions consisting of decentralized networks like Filecoin and Siacoin or centralized networks like DropBox and cloud systems. dApps can off-load large storage requirements to external networks to avoid more expensive on-chain costs and/or retrieve external data needed for computation.
  • dApps creating in-demand services like The Graph’s on-chain data indexing to support UIs or other blockchains for external payments. dApps can utilize other on-chain systems to get new features or reach new users.
  • Web hosting and domain registration solutions powering UIs and websites, allowing people to find and utilize dApps.
[...]

dApp Tokens (On-Chain Capital Layer)​

The final layer to capture dApp value is the native token of the dApp and the various external dApp tokens that may be used in a dApp. Most dApps issue their own native tokens, which are linked to some value stream or governance power within the dApp to give the tokens value and used to bootstrap a two-sided marketplace. Alternatively, dApps offering support for non-native dApp tokens generally do so to attract capital, especially DeFi apps that require liquidity for a wide variety of assets. The most common ways dApp tokens are used today include:

  • Providing liquidity for essential dApp services like token swaps and overcollateralized loans.
  • Funding insurance pools to protect user funds in case of faulty services.
  • Giving equity to holders by tacking on small transaction fees for specific user interactions within dApps.
  • Allowing users token-weighted voting power in on-chain governance decisions.
  • Functioning as a bridge currency between trades.
  • Serving as the medium for payment and/or discounts for dApp services or purchases.

dApp tokens capture value in various ways, sometimes with more than one value stream. Some dApp tokens simply give holders the right to vote on protocol modifications through the dApp’s native governance DAO. Other dApps distribute a portion of all transaction fees to governance token holders (dividend or burn) as a form of revenue for holding equity in the dApp. There are also dApps that issue inflationary rewards to holders that stake dApp tokens, whether exclusively for their own governance token holders or for some external dApp token holders to attract liquidity. Finally, some dApps get more creative by offering special privileges and discounts within their dApp that only their token holders can access.

[...]

So while different infrastructure layers may vie for value capture, successful dApps — regardless of where value capture aligns — will result in more value available for all infrastructure layers because the total pie is extensively larger. Ultimately, all four layers all interdependent and require the success of one another to not only maximize their own value capture but achieve the ultimate meta goal beyond material desires:

A society where people have the ability to control their own data and financial assets and participate in fair, open, transparent, and reliable contractual relationships with others.
 

KhaledHabib

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Dec 31, 2020
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Got something very insightful for you guys today: How dApp Value Capture Will Distribute Across Decentralized Infrastructure

This piece is especially important for all to pay attention to. As this place builds, there are more and more "tokens" released which might distract the casual investor from capturing upside, which trickles down the infrastructure layer to the most important piece, which is the settlement layer (hence why I am so bullish on decentralized blockchains - the sale of valuable blockspace is a booming business, because value trickles down across the entire stack to the hands of block producers).

Will frankenstein some pieces together and highlight the bangers for y'all.

--------------------------------------------------------------------------------------------------------------------------------------------

View attachment 40151

Decentralized applications (dApps) are a new type of digital application built on blockchains. Unlike most Apps today, which consist of closed-source code running on centralized servers, dApps are open-source software running on decentralized networks

Instead of focusing on the benefits to dApp users (demand-side) or why cryptocurrency tokens exist, this article examines how value capture from dApps will be distributed across decentralized infrastructure (supply-side). In a simple sense, what functionalities do dApps require that come with costs, and what layers of infrastructure are best equipped to service those functionalities and capture dApp fees as a result?

[...]

Value Capture to Consolidate Within Four Layers​

Considering the various dApp functions required and the macro trends that will affect value capture, let’s look at how value capture may consolidate over a long time horizon across four primary layers.

Blockchains (On-Chain Function Layer)​

The first and most obvious piece of infrastructure that will capture dApp value is the underlying blockchain. Blockchains are likely to consolidate around providing the following on-chain functions for dApps:

  • Checking private key signatures for asset transfers between users, within a dApp, and between dApps.
  • Verifying validity proofs, fraud proofs, threshold signatures, and TEE attestations derived from off-chain computations and layer-2 networks.
  • Computing smart contract logic; more or less depending on the throughput of the blockchain.
  • Updating the state of smart contracts and storing calldata or real-world data on-chain.
In effect, blockchains can capture a portion of value from every dApp running on their network. This value capture is likely to come from very low-cost, high-frequency individual transactions on high-throughput chains and higher-cost, lower-frequency batched transactions on decentralized blockchains. Overall, the key for blockchains to capture dApp value is to support many successful dApps with active users.

[...]

Oracles (Hybrid Service Layer)​

The second and more misunderstood piece of infrastructure to capture value from dApps are the oracles performing trust minimized off-chain functions, referred to as hybrid services. Since blockchains create determinism through isolation (i.e., blockchains only keep track of internal state using internal data), they have no built-in capability to connect off-chain. Blockchains require oracles to interact with off-chain resources in a manner that preserves their determinism.

If the blockchain layer is akin to decentralized computers, then the oracle layer is like a web of decentralized Internet protocols.
However, oracles go beyond securely connecting disparate systems of value; they also supplement on-chain computations and off-chain resources by refining them. For example, oracles can provide scalability and privacy to dApp computations and bootstrap on-chain connectivity and reliability to traditional API services through data aggregation and staking. Notably, both of these refinement services require no changes to underlying blockchains or APIs.

dApps will require a wide range of hybrid services from decentralized oracle networks (DONs), including to:

  • Fetch data from external APIs and deliver it on-chain.
  • Relay smart contract outputs to external APIs like fiat payment systems.
  • Aggregate data to harden it against single points of failure.
  • Automate DevOps and smart contract maintenance functions (Keepers) like triggering liquidations, rebases, limit orders, yield harvesting, balance top-ups, etc.
  • Generate verifiable random numbers for provably fair on-chain randomness.
  • Perform scalable smart contract and data computation using layer-2 technology.
  • Generate privacy for smart contract computation and data.
  • Order user transactions according to a pre-defined notion of fairness to prevent frontrunning and harmful forms of MEV.
  • Operate cross-chain and proof of reserve bridges for wrapped tokens and tokenized real-world assets.
  • Serve as a blockchain abstraction layer to read/write data to any blockchain.
External resources capture value by dApps paying directly or indirectly for their data/services. Payments are made either off-chain using fiat currencies and traditional API subscription models or on-chain using the external dApp/network’s native token. Most dApps across all blockchains require some form of external data or computation, which almost always necessitates the use of oracles as a bridge between environments. These external resources can be quite crucial to the dApp’s success, particularly data and computation used in the dApp’s execution. As a whole, the value capture for external resources is relatively high. However, most external APIs are niche, so there are clear limitations to how much value any single external resource can capture from dApps.

[...]

External APIs (Off-Chain Resource Layer)​

The third piece of infrastructure to capture dApp value is the external APIs utilized by dApps. External APIs are defined as any system or network existing outside the dApp’s underlying blockchain that natively generates a unique form of value, whether that be valuable data or services. External APIs encompass centralized systems, blockchains separate from the dApp’s own, and on-chain dApps that are leveraged off-chain. So while generalized oracle networks provide gateways to external resources and refine on-chain/off-chain services, external APIs generate many underlying datasets and computational services that dApps want to access.

Some examples of popular external API resources include:

  • Data providers specializing in generating particular datasets, such as high-quality weather data or financial market information. The dApp can use this data through an oracle as an input to trigger the execution of its computation.
  • Cloud infrastructure offering advanced computational capacities like high-performance machine learning algorithms and integrated IoT networks. The dApp can leverage cloud systems to process raw data, which is then relayed on-chain by an oracle as an input to trigger smart contract functions.
  • Global payments infrastructure providing fiat payment rails and access to large customer bases. dApps can use traditional payment gateways to settle transactions off-chain in local fiat currencies.
  • Storage solutions consisting of decentralized networks like Filecoin and Siacoin or centralized networks like DropBox and cloud systems. dApps can off-load large storage requirements to external networks to avoid more expensive on-chain costs and/or retrieve external data needed for computation.
  • dApps creating in-demand services like The Graph’s on-chain data indexing to support UIs or other blockchains for external payments. dApps can utilize other on-chain systems to get new features or reach new users.
  • Web hosting and domain registration solutions powering UIs and websites, allowing people to find and utilize dApps.
[...]

dApp Tokens (On-Chain Capital Layer)​

The final layer to capture dApp value is the native token of the dApp and the various external dApp tokens that may be used in a dApp. Most dApps issue their own native tokens, which are linked to some value stream or governance power within the dApp to give the tokens value and used to bootstrap a two-sided marketplace. Alternatively, dApps offering support for non-native dApp tokens generally do so to attract capital, especially DeFi apps that require liquidity for a wide variety of assets. The most common ways dApp tokens are used today include:

  • Providing liquidity for essential dApp services like token swaps and overcollateralized loans.
  • Funding insurance pools to protect user funds in case of faulty services.
  • Giving equity to holders by tacking on small transaction fees for specific user interactions within dApps.
  • Allowing users token-weighted voting power in on-chain governance decisions.
  • Functioning as a bridge currency between trades.
  • Serving as the medium for payment and/or discounts for dApp services or purchases.

dApp tokens capture value in various ways, sometimes with more than one value stream. Some dApp tokens simply give holders the right to vote on protocol modifications through the dApp’s native governance DAO. Other dApps distribute a portion of all transaction fees to governance token holders (dividend or burn) as a form of revenue for holding equity in the dApp. There are also dApps that issue inflationary rewards to holders that stake dApp tokens, whether exclusively for their own governance token holders or for some external dApp token holders to attract liquidity. Finally, some dApps get more creative by offering special privileges and discounts within their dApp that only their token holders can access.

[...]

So while different infrastructure layers may vie for value capture, successful dApps — regardless of where value capture aligns — will result in more value available for all infrastructure layers because the total pie is extensively larger. Ultimately, all four layers all interdependent and require the success of one another to not only maximize their own value capture but achieve the ultimate meta goal beyond material desires:

A society where people have the ability to control their own data and financial assets and participate in fair, open, transparent, and reliable contractual relationships with others.
Hey Ace, This is my very first message here but I have been on the forum for few months, currently, I have been developing smart contracts, not so much interested in NFTs, but building smart contracts for actual useful applications besides digital art. I'm really curious what do you do? I know that is a broad question but I really mean it, I'm interested in what do you do with crypto, etc.
 

AceVentures

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Hey Ace, This is my very first message here but I have been on the forum for few months, currently, I have been developing smart contracts, not so much interested in NFTs, but building smart contracts for actual useful applications besides digital art.

NFTs are types of smart-contracts. They don't need to represent "art" per say. It's simply an abstraction to represent any idea you wish.

I'm really curious what do you do? I know that is a broad question but I really mean it, I'm interested in what do you do with crypto, etc.

With money no longer my primary focus, I spend my time educating myself and others on ideas that I believe deserve to be brought into reality, creating art as a way of expressing my ideas, enjoying time with my family and friends, pushing the envelope on what I can accomplish with my physical body, and every day digging deeper down the rabbit hole.

My background is in engineering. Nowadays I mostly serve as a crypto-enthusiast, conspiracy theorist shitposter extraordinaire with philosophical ambitions and nifty GPU coding skills.

Me on a given day:
1633011782359.png

An example of generative art I created recently using Cyclic Cellular Automata algorithms:
View attachment 2021-09-12_00-11-46.mp4
 

KhaledHabib

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NFTs are types of smart-contracts. They don't need to represent "art" per say. It's simply an abstraction to represent any idea you wish.



With money no longer my primary focus, I spend my time educating myself and others on ideas that I believe deserve to be brought into reality, creating art as a way of expressing my ideas, enjoying time with my family and friends, pushing the envelope on what I can accomplish with my physical body, and every day digging deeper down the rabbit hole.

My background is in engineering. Nowadays I mostly serve as a crypto-enthusiast, conspiracy theorist shitposter extraordinaire with philosophical ambitions and nifty GPU coding skills.

Me on a given day:
View attachment 40187

An example of generative art I created recently using Cyclic Cellular Automata algorithms:
View attachment 40189
Haha, that's awesome! thanks for your feedback!
 

AceVentures

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For those that prefer stories and visuals to captivate the mind. To those for whom the 0s and 1s do not come together in a cohesive manner. For those that are lost in the sea of volatility and fear, I present to you an alternative medium, an empowering story, to help you understand the vision behind the trend:

View: https://www.youtube.com/watch?v=v1Z5BnBuFyE
 

nitrousflame

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For those that prefer stories and visuals to captivate the mind. To those for whom the 0s and 1s do not come together in a cohesive manner. For those that are lost in the sea of volatility and fear, I present to you an alternative medium, an empowering story, to help you understand the vision behind the trend:

View: https://www.youtube.com/watch?v=v1Z5BnBuFyE
Awesome vid, thanks for the share!
 

ElleMg

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Anybody heard of Lukso and the multiverse?

I wish I'd learnt about Fabian Vogelsteller earlier, I would've absolutely bought in at a dollar. I think the infrastructure they're working on will be huge. He's a genius and the whole 'focus on doing the work to get the necessary results instead of marketing' aspect really appeals to me. Rather than create a flashy marketing video like other flop projects (e.g. GVT) the Lukso team seem keen to keep working hard and most their 'marketing' is Fabian talking through fundamentals and the work they're doing with podcasters, youtubers, etc. Very appealing
 

Antifragile

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Anybody heard of Lukso and the multiverse?

I wish I'd learnt about Fabian Vogelsteller earlier, I would've absolutely bought in at a dollar. I think the infrastructure they're working on will be huge. He's a genius and the whole 'focus on doing the work to get the necessary results instead of marketing' aspect really appeals to me. Rather than create a flashy marketing video like other flop projects (e.g. GVT) the Lukso team seem keen to keep working hard and most their 'marketing' is Fabian talking through fundamentals and the work they're doing with podcasters, youtubers, etc. Very appealing
@AceVentures wrote a lot on Lukso here and in another NFT thread for any early adopters to jump in back when it was like $6. He's the resident guru on the subject.
 

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Yes, @AceVentures has talked about it quite alot. Thanks to him I've spent the last month learning in detail about crypto in a general sense, and will now be diving into the technical and programming aspects.
I also wish I would have found Ace's posts earlier. LYXE is now at $26 ! I'm wondering if it will ever go back down because the last few weeks it didn't move much while all the other cryptocurrency's were on a downtrend.
 

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AceVentures

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Yes, @AceVentures has talked about it quite alot. Thanks to him I've spent the last month learning in detail about crypto in a general sense, and will now be diving into the technical and programming aspects.
I also wish I would have found Ace's posts earlier. LYXE is now at $26 ! I'm wondering if it will ever go back down because the last few weeks it didn't move much while all the other cryptocurrency's were on a downtrend.

We are sitting at the dawn of a new layer for social coordination. Not talking about LUKSO here, but about what happens when human beings are connected together through a transparent social and financial grid enabled by cryptography and the open internet.

Keep paying attention. Forget the fear that you have missed out - it is a fear from those that have not yet understood what this technology enables. They're thinking in terms of money. For many - what is happening is boiled down to some words describing "investing in crypto" as playing market move with the aim to get rich.

What is happening is far more visionary and significant in the context of our evolving human civilization. It is about connecting human beings together through a grid that empowers every unit. These layers of coordination have never existed before - and they completely obliterate legacy top-down power structures that have kept a lid over what the collective consciousness could accomplish as creativity converges.

You are not late my friend, you are watching the birth of an empowering future for us all. You are exactly where you need to be.
 

robjohn

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We are sitting at the dawn of a new layer for social coordination. Not talking about LUKSO here, but about what happens when human beings are connected together through a transparent social and financial grid enabled by cryptography and the open internet.

Keep paying attention. Forget the fear that you have missed out - it is a fear from those that have not yet understood what this technology enables. They're thinking in terms of money. For many - what is happening is boiled down to some words describing "investing in crypto" as playing market move with the aim to get rich.

What is happening is far more visionary and significant in the context of our evolving human civilization. It is about connecting human beings together through a grid that empowers every unit. These layers of coordination have never existed before - and they completely obliterate legacy top-down power structures that have kept a lid over what the collective consciousness could accomplish as creativity converges.

You are not late my friend, you are watching the birth of an empowering future for us all. You are exactly where you need to be.

Incredible words AceVentures. I want to thank you for all the information and knowledge that you've posted, in this thread and in the NFT one as well. I also have a question for you.

As far as development, ETH and Solidity are the most popular. But lots of people are talking about Solana. And how it could overtake Ethereum, if Ethereum doesn't quickly solve their issues and roll out the 2.0 update. I've heard that alot of developers are moving from Ethereum to Solana. It's my understanding that Solana does not use Solidity.

Would it be a bad decision to simply start with Solana's programming platform? Or start with ETH and migrate one day if ETH is no longer the king? Or pick any platform, since the important thing is to learn blockchain programming fundamentals, which will eventually inspire new ideas? Thanks!
 

MitchC

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I have absolutely no basis for this call, I can’t read charts, I don’t follow news, but I just have a strong feeling that Bitcoin is going to absolutely pump in these next couple months, like 250k pump.

I know this post provides no value but this thread is for predictions and discussion and it will be interesting to look back on.
 

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Incredible words AceVentures. I want to thank you for all the information and knowledge that you've posted, in this thread and in the NFT one as well. I also have a question for you.

As far as development, ETH and Solidity are the most popular. But lots of people are talking about Solana. And how it could overtake Ethereum, if Ethereum doesn't quickly solve their issues and roll out the 2.0 update. I've heard that alot of developers are moving from Ethereum to Solana. It's my understanding that Solana does not use Solidity.

Would it be a bad decision to simply start with Solana's programming platform? Or start with ETH and migrate one day if ETH is no longer the king? Or pick any platform, since the important thing is to learn blockchain programming fundamentals, which will eventually inspire new ideas? Thanks!

If you prefer, you certainly can use the Solana engine and learn about building decentralized apps using their software system.

A quick note on why Solana is booming: parallel computing. The Solana engine can determine if tx A affects or does not affect tx B, and if it doesn't then it can run tx A and B simultaneously, yielding incredibly fast speeds.

on ETH, you still have a single thread running computation - one tick at a time, and every tx gets queued behind this ticker. Speed is coming to ETH via zk technology (zero knowledge cryptography) in the very near future. This would turn ETH, the underlying settlement layer, into a chain that can be fed from multiple parallel computers.

This was just as quick little ramble to talk about the nuances of blockchain throughput to help you understand things are not black and white - Solana fast and ETH slow - but there are real technical differences and merits in how these computers run.

With that said - do not get in the same trap that folks interested in web2.0 made : "Should I learn JavaScript or PHP?"

I prefer ETH and Solidity because network effects matter - namely there are awesome developer tools, community-made scaffolds for rigging together dApps, educational content, and massive teams working together using this technology. Some of the smartest people I know in this space are working on ZK technology because it is one of the most important applications of cryptography. Look up Starkware and their Starknet system if you want to get a glimpse of what the multi-chain future secured by ZK-EVMs look like.

But you can also learn Solana - and there is nothing wrong with that. Ultimately, if you stay in this space long enough, you'll have specific needs for the Solana engine, or you might have more general-purpose needs you can fill with EVM stacks. Don't get lost in the words - Solana dev or ETH dev - adopt the identity of a curious person that has no bounds to what he can or will learn.

My advice: start with ETH - go through the ETH website and dig through the SDK. Then hop on GitHub and break down one of your favorite projects. Go through the different repos, the readmes, and the different scripts. You will learn so fast. Once you get comfortable doing this process, you can start doing it with Solana as well, and determine for yourself where the merits are and which stack serves what purpose best.
 

OleksiyRybakov

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I have absolutely no basis for this call, I can’t read charts, I don’t follow news, but I just have a strong feeling that Bitcoin is going to absolutely pump in these next couple months, like 250k pump.
I do not expect Bitcoin to hit 250k$ before the next halving in 2024 but I think that Bitcoin can reach 100k$ in 2021. I am more optimistic on altcoins like ETH and ADA.
 

Antifragile

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I do not expect Bitcoin to hit 250k$ before the next halving in 2024 but I think that Bitcoin can reach 100k$ in 2021. I am more optimistic on altcoins like ETH and ADA.

what makes you say this? What’s your reasoning? Please elaborate and thanks
 

GPM

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My wife, the most non computer tech savvy person I have ever met in my life, showed me a picture of Vitalik Buterin from her Facebook feed with some caption about following your dreams. She knows I do something with crypto, and wanted to show me.

I told her they will look back on Vitalik in 100 years as one of the most important people of the modern world.

Blockchain tech will change the world in the same way that the internet has shaped it since it's inception. So long centralized control. Wonder why China is trying to ban a visible aspect of it? Because they have no way of controlling it.
 

ElleMg

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How will quantum computing affect crypto?
 

OleksiyRybakov

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what makes you say this? What’s your reasoning? Please elaborate and thanks
Which part should I elaborate? The part why I do not believe in Bitcoin to hit 250k? The part why I am more optimistic on altcoins? Or both?
 

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