governance. gatekeepers. privacy coins. newsletter | week #17
Market map privacy coins, protocols, and platforms: cryptos bringing privacy to blockchain Decred being a privacy coin, this market map puts it into the context of other coins and project working on privacy
Privacy coins vs. coins with a privacy feature: analysing privacy coins Analysis how crypto privacy coins (Monero, Dash, Verge, Zcash, Bytecoin etc.) differ. There are fully private coins and coins with privacy as a feature. Further differentiators: scope of anonymity, depth of technical integration, type of privacy technology, mining algorithm, and ASIC-resistance.
Explains Qtum’s Blockchain governance. In text and as an infographic.
Dapp browser market map: 14 projects working on Dapp browsers Besides Coinbase’s Cipher Browser, there are many other project working on dapp browsers.
New market map! Stablecoins – Overview of 19 projects working on stablecoins
If the Internet (or software) is eating the world, Blockchain seems to be eating software/Internet
If the Internet needs supporting tools, Blockchain does so as well
If the Internet poses process innovation as well as business foundation, blockchain seems too
If the Internet-enabled, second-order innovations blockchain will too
Gatekeepers and platforms
CoinList’s Airdrops and Coinbase’s Earn serve as the first touch point between new projects and end-users. If a project is not listed on Airdrops it doesn’t exist for users. Analogously, if something cannot be found on Google, it doesn’t exist.
Wallets in general operate in a winner takes it (almost) all market: Like with normal, non-crypto wallets they are mostly undifferentiated and supporting multiple wallets is cumbersome for developers. In fact, we can already observe that with hardware wallets such as the Ledger Nano S.
Tezos not getting a break
About two weeks ago Verge, a currency with focus on privacy, announced their partnership with Pornhub (see issue #16). This week, MobileCoin announced a $30 Million funding by Binance Labs. (techcrunch). MobileCoin is a currency focusing on privacy that should be integrated into messengers like WhatsApp and Signal. Few observations:
MobileCoin wants to diffusion through hybridization
As explained in Blockchain and socio-technical systems – diffusion through hybridization startups which follow this strategy work on solutions that can be incorporated into existing „normal“ products. Through that integration, those „normal“ products can be enhanced with features that – in the best case – are only achievable using blockchain technology. There are three advantages to this approach:
- Companies which are enhancing existing products are not positioning themselves as competitors and thus aren’t a threat to incumbents. Because incumbents are very powerful, this strategy allows Blockchain startups to work without having to worry that much about competition. This leads to the second advantage.
- Because startups must not fight incumbents they have enough time to study the industry and work on bigger products which will eventually end up being direct competitors. Until then, however, those startups are operating under the „competition radar“.
- Accustom people slowly to the new „world“: By not confronting users directly with something completely new, startups can slowly accustom people to the new paradigm and incrementally lead them towards the new world.
The privacy coins “industry” is still in development
Some would argue that today’s privacy coins have already “won” this industry. Although I believe that today’s coins could be “tomorrow’s” winners due to network effects, I believe that it is still too early to judge. MobileCoin’s funding is one of many examples that there are a lot of other people out there who believe that the winner is not yet decided.
Privacy coins matter
If we look at the crypto industry there are certain things that are needed for the industry to mature. Besides dapp browsers, decentralized exchanges, stablecoins, and blockchain governance, privacy coins are essential as well. MobileCoin’s funding undermines this point further.
- Market map privacy coins, protocols, and platforms: cryptos bringing privacy to blockchain
- Privacy coins vs. coins with a privacy feature: analysing privacy coins Analysis how crypto privacy coins (Monero, Dash, Verge, Zcash, Bytecoin etc.) differ. There are fully private coins and coins with privacy as a feature. Further differentiators: scope of anonymity, depth of technical integration, type of privacy technology, mining algorithm, and ASIC-resistance.