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The Grand Flippening of Ethereum in 2018


Satoshi&Co Daily Crypto Newsletter

January 16 · Issue #1 · View online

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Despite appreciating by more than 12,500% in the last months, Ethereum still trails far behind bitcoin, whose market cap is now more than $200 billion as compared to Ethereum’s $120 billion. This was as a result of Bitcoin’s growing mainstream adoption, driven by the launch of Bitcoin futures contracts by CBOE and CME exchanges that provide a conduit to traditional investors to invest in cryptocurrencies. However, crypto thought leaders now believe that 2018 could be the year in which Ethereum will be able to challenge bitcoin’s long-established market leader status as the highest-valued cryptocurrency.
Below, we discuss the key milestones in 2018, if achieved, that could oust bitcoin from its #1 position.
Scalability: One of the biggest weapons used by crypto sceptics in criticising cryptocurrencies is the low transaction throughput as compared to traditional centralized institutions. Ethereum is currently processing about 1.3 million transactions per day - three-times as many as bitcoin - with much lower transaction fees. That said, credit card companies such as Visa and MasterCard are capable of processing more than 150 million transactions per day. For example. In November last year, the unexpected surge in interest in the Cryptokitties application caused the confirmation times and transaction fees to skyrocket - highlighting the urgency for scaling solutions that can accommodate significantly higher of transactions. Ethereum founder Vitalik Buterin has also noted that ‘Scaling’ is the biggest focus for the Ethereum developers in 2018. Several efforts such as Sharding, Plasma and Raiden Network are currently being looked at to improve the scalability of the Ethereum blockchain. If Ethereum’s scalability solutions come into effect before the long-awaited Lightning Network solution on the bitcoin blockchain, it could expedite Ethereum’s mainstream adoption and, therefore, result in a higher ether price.
More Dapps:  Despite the growing regulatory scrutiny around ICOs, the number of projects coming online in 2018 is widely expected to be higher than in 2017 as increasing number of industries, including government entities and Oil & Gas companies,  are looking at the benefits of adopting the blockchain technology and what the Ethereum protocol could offer in that respect. In addition to project building, faster transaction times and lower fees as compared to bitcoin could lead to greater network effects.
Even if Ethereum manages to put bitcoin to the sword by becoming a reliable currency for medium of exchange, we still believe bitcoin to continue to be the undisputed king of store-of-value due to the substantial hash power guarding the network and a supply limit of 21 million coins.

Cryptocurrency of the Week
Loopring is an open-source and decentralized exchange protocol that removes the need for third- parties such as exchange websites in peer to peer trading process. The loopring protocol serves as an automated system that allows users to execute trades over multiple other cryptocurrency exchanges, thus increasing liquidity, reducing risk, lowering the cost of trading and eliminating the problem of fee shopping. Tokens and coins are kept in the traders’ wallets or Loopring’s smart contract (which can be built on any blockchain that supports smart contracts) while they are trading, without having to send them to an exchange. Users’ trades are executed automatically across various exchanges that Loopring supports using an automated trading intelligence feature. Loopring(LRC) is the token that is used to pay exchange transaction fees and serves as a deposit for exchange registrations.
ZeroRisk: Loopring does not require members to send tokens to exchanges for custody. Tokens always remain in their blockchain addresses during the whole transaction life cycle Members can even transfer their tokens around after orders are submitted – Loopring will automatically adjust trading amount at the initial price. Loopring protects members from threats such as exchange bankrupcies and DDOS.
Order Sharing: Loopring mechanism allows to order break into small pieces, identifies the best exchanges and times to trade those pieces on, and applies game theoretic logic to optimize trading results. Loopring can also well protect trading from DDOS attack.
Ring-Matching: Loopring is a decentralized, automated trading intelligence interfaces between crypto exchanges and blockchains, using our balance sheet to enable users to realize liquidity many times greater than available directly in the market, by both generating liquidity within the platform and breaking orders into small pieces that are placed across all market venues simultaneously.
Cross-chain protocol: Loopring was designed to be blockchain agnostic. As long as a blockchain has smart-contract support, Loopring can be implemented, and all ERC20-like tokens on such a blockchain can be traded under Loopring.
The main value is that exchanges need to provide a discount for transactions made through their protocol. The percentage of this fee can be negated by depositing LRC tokens into the protocol and the rank of the exchange determines the discount that needs to be provided.
Exchanges will try to buy as many LRC tokens as cheap as possible to increase their ranking, therefore decreasing the discount they have to provide, ultimately increasing their profits.
Crypto News of the Week
It’s okay, Jamie! We all make mistakes.
Bitcoin price: JPMorgan CEO admits he was wrong to call bitcoin a 'fraud' | City & Business | Finance |
Regulatory scrutiny could be the biggest roadblock in bitcoin’s path to glory in 2018.
South Korea to decide what to do about crypto exchanges after talks
Listen! We are bullish on cryptocurrencies and the blockchain technology, but this is utterly ridiculous.
Wonders of Naming the Company ‘Blockchain’ or ‘Bitcoin... | News | Cointelegraph
Well, we are not surprised!
Google Search Volume for Bitcoin Keywords Increased by as Much as 1000% During 2017
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