papernotes
Important Blog Posts and Articles
Naval, The Fifth Protocol
'Cryptocurrencies are electronic cash, and as such, will be used by electronic agents to exchange value, verify contracts, and track identity and reputation. All of a sudden, the computing resources spent by the Bitcoin miners doesn’t seem wasted – it seems efficient, given that it can be used for congestion control and routing of other network resources.'
Balaji, Thoughts on Token Sales
- Tokens are possible becasue of four years of digital currency infrastructure
- Tokens vary in their underlying blockchains and codebases
- Token buyers are buying private keys
- Tokens are analogous to paid API keys
- Tokens are a new model for technology, not just startups
- Tokens are non-dilutive alternative to traditional financing. (100x more potential buyers, 1000x improvement in time-to-liquidity)
- Tokens can be bought by any American
- Tokens can be sold internationally over the internet
- Tokens have liquidity premium
- Tokens will decentralize the process of funding technology
- Tokens enable new business model: better-than-free
- Token buyers will be to investors what bloggers/tweeters are to journalists
- Tokens further increase the primacy of the technologist over the traditional executive
- Tokens mean instant custody without intermediaries
- Tokens may be generalizable to every tech company through paid logins
Read
Catalini, Some Simple Economics of the Blockchain
Nicely written paper mainly about the effects of costless verification.
To Read