Ari Paul is the co-founder and CIO of BlockTower Capital.
All coin and product reviews by expert Ari Paul.
IOTA's primary pitch is to be infinitely scalable and free. This requires that users run nodes that validate transactions, and that these "users" can be things like a toaster to be applicable for IOT. Tangles use tiny amounts of PoW to validate and prevent spam. But . . . if the PoW required is so low that your toaster can do it, then it's also low enough that a bad actor can mess up the graph with cheap spam.Full review
Bitcoin is bigger than the Bitcoin blockchain.
Bitcoin (BTC) the asset is tracked on the Bitcoin blockchain and transferred over the Bitcoin network (usually). If this was the end of the story, it would be a problem, since the Bitcoin blockchain is first generation technology with limited throughput and features.
But BTC can be used on other protocols and networks. The Lightning Network is a layer 2 protocol that allows for numerous fast and cheap BTC transfers that settle to and are secured by the Bitcoin network. People may also use sidechains, drivechains, and other L2 or L3 solutions.
[This] means that BTC is unlikely to be rendered obsolete by competing protocols that offer incremental improvements. BTC users can access those features or greater bandwidth by using BTC on other protocols like LN.Full review
Grin is mostly a feature. That feature can be added/accessed via other cryptocurrencies without a new token. I think it's unlikely base protocols with new features can survive long-term.
Grin's reason to be is mostly mimblewimble, which is a feature, which I'm skeptical is enough to support long-term value for a base protocol cryptoasset.Full review
I greatly admire the 0x team in all regards, really they’re awesome and doing amazing work, but I’ve yet to hear a coherent argument for value from governance that survives concrete examples.
If 0x network does what I want, I don’t need to own any, voting isn’t necessary for me (and costly because it requires tying up capital in a volatile asset.)
If it doesn’t do what I want, there’s 3 possibilities: I own a small amount of 0x, too little to swing the vote, pointless. I own enough to swing the vote, in which case I’m probably such a giant player in the ecosystem that I could likely fork and take other players w/me since what I want also probably extends to other big players in a similar position. Actually, that’s it. That covers the big cases, and in each one, owning 0x is an opportunity cost and risk without concrete governance reward.Full review
Consider the gnosis ICO, another experiment. [The] gnosis approach seemed reasonable a priori but failed miserably because of “stupid” investors who were entirely price insensitive. Maybe that should have been predicted, but wasn’t obvious to me ahead of time.Full review