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Eric Wall

Eric Wall is the head of research at Arcane Crypto, a cryptocurrency investment fund. He formerly was the crypto lead at Cinnober, a company that develops real-time clearing technology for trading venues and clearinghouses.

Reviews by Eric Wall

All coin and product reviews by expert Eric Wall.

  • Eric Wall on NEO Head of Research at Arcane Crypto

    A *Byzantine* *fault* *tolerant* consensus system's whole purpose is to be designed to handle ANY error or malicious behavior from a subset of the nodes and still reach consensus. In NEO, their system couldn't handle the most simple error of one node.

    Full review 💩


  • Eric Wall on Cardano Head of Research at Arcane Crypto

    I am not convinced by Cardano's base-layer security. AFAIK, it's non-slashing PoS (slashing appears to be not decided on yet but unlikely?). I'd be very curious to learn how this doesn't introduce an array of trust assumptions and attack vectors.

    Full review 💩


  • Eric Wall on Bitcoin Cash Head of Research at Arcane Crypto

    PoW is only secure if an attacker can't conceivably amass 51% hashrate. BCH was *never* secure. This hashwar drama is just a symptom of the broader underlying problem. Reorg protections can't fix it. In reality, BCH's best bet is a hash function change or even a switch to PoS.

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  • Eric Wall on Bitcoin Head of Research at Arcane Crypto

    The power of miners is very limited. Try to stop your central bank from diluting your currency by doubling the money supply in the next 30 years. Impossible. Now try doing it in bitcoin. Easy: just run a full node. We'll run them together. It'll work. That's how we got here.

    Full review 🔑


  • Eric Wall on Binance Coin Head of Research at Arcane Crypto

    Binance is the world's fastest profitable unicorn. But can anyone riddle me how their $15MM ICO wasn't an illegal securities offering? Some facts about BNB coin:

    - ERC20 token
    - Offered to the public
    - Founders kept 40%
    - Clearly sold as an investment
    - ICO before a live product

    Full review 💩


  • Eric Wall on Bitcoin SV Head of Research at Arcane Crypto

    If you are satisfied with a solution where the consensus among a small group becomes canonical for the rest of the network, then both XRP or Bitcoin SV are good solutions for you (most cryptocurrency enthusiasts aren't).

    Full review 💩


  • Eric Wall on Civic Head of Research at Arcane Crypto

    A tailor-made token for a specific use case never makes sense. It goes against the fundamental idea of money. People don't want to have accept payment in things they can't use elsewhere. It's a limitation, not a feature.

    To trade in one currency and settle in another requires a liquid market for CVC to other currencies. Who do you think is going to provide that liquidity? Probably someone earning on the spread = hidden fees. For the users, this is the opposite of an optimal economy.

    Full review 💩


  • Eric Wall on Bittorrent Token Head of Research at Arcane Crypto

    TRX & BTT's primary use case is a public crowdfunded marketing campaign to get Justin Sun's face on as many things as possible and next to as many famous people as possible.

    Full review 💩
    Show thread Eric Wall on Bittorrent Token


  • Eric Wall on Chainlink Head of Research at Arcane Crypto

    [Chainlink is] just a multisig oracle service. Like Provable Things + weighted average. Similar to MakerDAO price feeds. Except they require the dumbest 2017-style ERC20 utility token called LINK for queries, so of course it has a "community"....it's just Provable Things + a weighted average? It's like 10 more lines of code. This doesn't need a token, in fact, a different token required to use the system makes this thing embarrassingly overcomplicated and worthless.

    Full review 💩


  • Eric Wall on Kin Head of Research at Arcane Crypto

    It's like, you want Kin to be a cryptocurrency. But you don't want users or even the apps that they use Kin to use cryptocurrency nodes. If you don't have that, then there's no trust-minimization, no security and we're back at an in-app points system.

    It doesn't help the users of Kin that a couple of large stakeholders somewhere run Kin full nodes if no one is doing it on their behalf. If no one is doing that, it doesn't help them at all that there's a blockchain or that the blockchain is federated.

    Full review 💩
    Show thread Eric Wall on Kin


  • Eric Wall on Tron Head of Research at Arcane Crypto

    DPoS chains such as Tron make an extreme trust-dependency trade-off compared to other chains to reach higher throughput. Now, despite having made this brutal trade-off, it can't even handle a single dapp (BTT) without spinning up a separate chain.

    Full review 💩


  • Eric Wall on XRP Head of Research at Arcane Crypto

    XRP incurs no in-protocol economic costs for creating conflicting blocks and has no permissionless way for new block producers to enter the system. It is also too heavy to validate as a full node so you have like 1 community full node....

    Full review 💩


  • Eric Wall on Telegram Open Network Head of Research at Arcane Crypto

    The TON blockchain whitepaper made me wish I could unlearn how to read.

    Full review 💩
    Show thread Eric Wall on Telegram Open Network


  • Eric Wall on Dai Head of Research at Arcane Crypto

    How Dai works (I think):
    1. Have $200 ETH, get +$100 leverage from MakerDAO
    2. Have $200 ETH + $100 Dai
    3. Oops your ETH crashes to $149
    5. MakerDAO liquidates $100 of your ETH (+13% penalty)
    6. You get the remaining $36 ETH back
    7. You now have $100 Dai + $36 ETH

    If you had done absolutely nothing with your ETH, you'd have $149. Now you have $136. Your loss: $13 (plus some minor slippage and tx fees, so maybe $15 in practice).

    Full review 💩


  • Eric Wall on Ethereum Head of Research at Arcane Crypto

    Are you convinced that all Ethereum research is a scam? Offer me your sharpest criticism of ZK Sync. This construct here is phenomenal. From what I can tell, it is what sidechains were supposed to be, but better: offchain, trust-minimized, scalable, final.....

    I actually think Ethereum should scrap sharding and focus on these types of solutions instead. Sharding is a hot mess. This thing is clean, elegant. Less confusing to reason about. I even think it can help scale bitcoin, I look forward to paying with tBTC-like things in ZK Sync.

    It's bleeding-edge cryptography that enables this thing, and it still sits on Ethereum and inherits its issues, so those are reasons to be bearish on this, I guess. But can you come up with any other criticism? This is neat regardless. You could build it on any expressive chain.

    Full review 🔑


  • Eric Wall on EOS Head of Research at Arcane Crypto

    EOS is just a permissioned blockchain with some voting involved to elect the nodes. If you don't care about your users having time to validate the chain, [EOS's] 810 [transactions per second] is a joke. Permissioned chains have been known to be able to do over a million tps since 2016.

    Full review 💩
    Show thread Eric Wall on EOS


  • Eric Wall on Monero Head of Research at Arcane Crypto

    I don't want to recommend people to get paid in XMR because the lower meta-anonymity set, the illiquidity, and lack of infrastructure around it. And I'm not a fan of a multicoin future, it's not good for currency to be splintered. It's better if we get BTC working for the job.

    Full review 💩


  • Eric Wall on Numerai Head of Research at Arcane Crypto

    What's going on with NMR? Seem like ~all recent volume coincided with their recent stock picking tournament announcement. Is there anything "real" here except for low-effort Sybil marketing roulette?

    Full review 💩


  • Eric Wall on Tether Head of Research at Arcane Crypto

    To quite some extent the reason Tether is king [of stablecoins] is because it provides essentially free access to shadowbanking. I'm not sure it's just a story about size or network effect.

    Full review 🔑
    Show thread Eric Wall on Tether


  • Eric Wall on IOTA Head of Research at Arcane Crypto

    So everyone knows that IOTA has been turned off for >12 days now, but do you also know that:
    - the main client (Trinity) was actually a Trojan because of a compromised third-party dependency?
    - all private keys that used this client are potentially stolen?

    8,500,000,000,000 iotas (~$2 million) were successfully stolen before the IOTA Foundation could pull the plug on the Coordinator. They have no idea how many private key seeds have been stolen yet; there's a big chance more theft is waiting when it reboots.

    Full review 💩
    Show thread Eric Wall on IOTA


  • Eric Wall on Libra Head of Research at Arcane Crypto

    To people who think Libra will be a flop if it launches:

    Libra will likely be more stable than the dollar, cheaper to transfer than almost any competitor, have access to the largest network on the planet, presented by the best UX designers money can buy? It's the Netflix of Money.

    Full review 🔑