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Revisiting the Thesis for Decentralization

Every once in a while, just so that we don’t miss the forest for the trees, we zoom out, get back to first principles, and revisit why this is all so important. ‘This’ of course refers to decentralization and everything that decentralization has engendered over the past decade or so, ever since Satoshi Nakamoto’s white paper.

“Why should we care? Why does computer money have value? What is Fiat money?”

Some fundamental questions regarding economics, monetary policy, game theory, and computer science are explored in a new fascinating blog series, A universal framework for understanding incentive design in crypto and fiat systems.

Selected excerpt: “In order to change a prevailing extant system, one must first understand the system itself and that it is the nature of the system to resist a change. To solve the Coordination Problem, one must first understand clearly (a) how existing third-party enforcement rule systems work to create trust and (b) how the Bitcoin solution and its proposed decentralized governance system can provide a clear advantage to network users over Fiat at the level of incentive design.
What we found useful in the ongoing viksavaakya is a universal framework that can bring clarity and fine-tune our approach to enable such a transition and successfully create a decentralized economy”.

Read the full story here, authored by Varun Vruddhula (@GandalfTheBr0wn)

Meanwhile in Crypto Wonderland….

“Kakao to Integrate Crypto for its Users” According to fnnews, a mainstream financial media outlet in South Korea, Kakao is integrating crypto for its 44 million local users. Local publications have reported that Kakao is estimated to have raised $90 million to develop its own blockchain network called Klatyn and the integration of a crypto wallet into KakaoTalk is one way to introduce their own blockchain network to the public. For now, Kakao is said to be considering an opt-in method to enable cryptocurrency and blockchain services. Simply put, users will have control over the presence of the crypto wallet on the messaging app.

“Israeli Court Prevents Bank From Closing Miner’s Account” A court in Israel has once again ruled against a local bank which tried to close the account of a cryptocurrency related business without any due cause. This time a Tel Aviv court has determined that a bank can’t refuse to operate an account on behalf of a crypto miner. Union Bank of Israel, Ltd., the sixth largest Israeli bank, will not be allowed to close the account of local cryptocurrency mining company Israminers Ltd. Tel Aviv District Court Judge Limor Bibi has ruled that the bank’s sweeping policy of prohibiting the opening of an account for any customer working with digital currencies is unreasonable.

“Citi’s U-turn on Their Own Cryptocurrency” Citibank is not following in the footsteps of JP Morgan with the creation of its own cryptocurrency, believing there are better ways of making improvements to existing financial transaction systems. The bank has been trying to get its blockchain-based “Citicoin” off the ground for some time. Rumors first surfaced about it all the way back in 2015. It seems that Citibank decided to take a step back from cryptocurrencies to focus on short-term gains.

“Another Twist in the Quadriga Debacle”The law firm representing Quadriga Fintech Solutions Corp. is withdrawing amid concerns about a potential conflict of interest, the latest twist to the strange story of the shuttered Canadian cryptocurrency exchange. Stewart McKelvey, a law firm with offices across Atlantic Canada, was representing both Quadriga and the estate of its deceased chief executive officer, Gerald Cotten, who took to his grave the passwords to unlock more than $140 million in cryptocurrencies in December.

Crypto Twitter Pick

What We’re Reading / Listening To

Bitcoin and Central Banking by David Andolfatto
How Uniswap Quickly Became One of the Most Popular Dexes featuring Hayden James

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Satoshi&Co Daily Crypto Newsletter

By Ramani Ramachandran and Rohit Alluri

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