Tag: cryptocurrency

Friday floutings

Did you see these things this week? I did, and thought they were aces.

  1. Do you live in a ‘soft city’? Here’s why you probably want to (Fast Company) — “The benefits of taking a layered approach to building design—and urban planning overall—is that it also cuts down on the amount of travel by car that people need to do. If resources are assembled in a way that a person leaving their home can access everything they need by walking, biking, or taking transit, it frees up space for streets to also be layered to support these different modes.”
  2. YouTube should stop recommending garbage videos to users (Ars Technica) — “When a video finishes playing, YouTube should show the next video in the same channel. Or maybe it could show users a video selected from a list of high-quality videos curated by human YouTube employees. But the current approach—in which an algorithm tries to recommend the most engaging videos without worrying about whether they’re any good—has got to go.”
  3. Fairphone 3 is the ‘ethical’ smartphone you might actually buy (Engadget) — “Doing the right thing is often framed as giving up something. You’re not enjoying a vegetarian burger, you’re being denied the delights of red meat. But what if the ethical, moral, right choice was also the tastiest one? What if the smartphone made by the yurt-dwelling moralists was also good-looking, inexpensive and useful? That’s the question the Fairphone 3 poses.”
  4. Uh-oh: Silicon Valley is building a Chinese-style social credit system (Fast Company) — “The most disturbing attribute of a social credit system is not that it’s invasive, but that it’s extralegal. Crimes are punished outside the legal system, which means no presumption of innocence, no legal representation, no judge, no jury, and often no appeal. In other words, it’s an alternative legal system where the accused have fewer rights.”
  5. The Adults In The Room (Deadspin) — “The tragedy of digital media isn’t that it’s run by ruthless, profiteering guys in ill-fitting suits; it’s that the people posing as the experts know less about how to make money than their employees, to whom they won’t listen.”
  6. A brief introduction to learning agility (Opensource.com) — “One crucial element of adaptability is learning agility. It is the capacity for adapting to situations and applying knowledge from prior experience—even when you don’t know what to do. In short, it’s a willingness to learn from all your experiences and then apply that knowledge to tackle new challenges in new situations.”
  7. Telegram Pushes Ahead With Plans for ‘Gram’ Cryptocurrency (The New York Times) — “In its sales pitch for the Gram, which was viewed by The New York Times, Telegram has said the new digital money will operate with a decentralized structure similar to Bitcoin, which could make it easier to skirt government regulations.”
  8. Don’t Teach Tools (Assorted Stuff) — “As Culatta notes, concentrating on specific products also locks teachers (and, by extension, their students) into a particular brand, to the advantage of the company, rather than helping them understand the broader concepts of using computing devices as learning and creative tools.”
  9. Stoic Reflections From The Gym (part 2) by Greg Sadler (Modern Stoicism) — “From a Stoic perspective, what we do or don’t make time for, particularly in relation to other things, reflects what Epictetus would call the price we actually place upon those things, on what we take to be goods or values, evils or disvalues, and the relative rankings of those in relation to each other.”

Calvin & Hobbes cartoon found via a recent post on tenpencemore

Friday feeds

These things caught my eye this week:

  • Some of your talents and skills can cause burnout. Here’s how to identify them (Fast Company) — “You didn’t mess up somewhere along the way or miss an important lesson that the rest of us received. We’re all dealing with gifts that drain our energy, but up until now, it hasn’t been a topic of conversation. We aren’t discussing how we end up overusing our gifts and feeling depleted over time.”
  • Learning from surveillance capitalism (Code Acts in Education) — “Terms such as ‘behavioural surplus’, ‘prediction products’, ‘behavioural futures markets’, and ‘instrumentarian power’ provide a useful critical language for decoding what surveillance capitalism is, what it does, and at what cost.”
  • Facebook, Libra, and the Long Game (Stratechery) — “Certainly Facebook’s audacity and ambition should not be underestimated, and the company’s network is the biggest reason to believe Libra will work; Facebook’s brand is the biggest reason to believe it will not.”
  • The Pixar Theory (Jon Negroni) — “Every Pixar movie is connected. I explain how, and possibly why.”
  • Mario Royale (Kottke.org) — “Mario Royale (now renamed DMCA Royale to skirt around Nintendo’s intellectual property rights) is a battle royale game based on Super Mario Bros in which you compete against 74 other players to finish four levels in the top three. “
  • Your Professional Decline Is Coming (Much) Sooner Than You Think (The Atlantic) — “In The Happiness Curve: Why Life Gets Better After 50, Jonathan Rauch, a Brookings Institution scholar and an Atlantic contributing editor, reviews the strong evidence suggesting that the happiness of most adults declines through their 30s and 40s, then bottoms out in their early 50s.”
  • What Happens When Your Kids Develop Their Own Gaming Taste (Kotaku) — “It’s rewarding too, though, to see your kids forging their own path. I feel the same way when I watch my stepson dominate a round of Fortnite as I probably would if he were amazing at rugby: slightly baffled, but nonetheless proud.”
  • Whence the value of open? (Half an Hour) — “We will find, over time and as a society, that just as there is a sweet spot for connectivity, there is a sweet spot for openness. And that point where be where the default for openness meets the push-back from people on the basis of other values such as autonomy, diversity and interactivity. And where, exactly, this sweet spot is, needs to be defined by the community, and achieved as a consensus.”
  • How to Be Resilient in the Face of Harsh Criticism (HBR) — “Here are four steps you can try the next time harsh feedback catches you off-guard. I’ve organized them into an easy-to-remember acronym — CURE — to help you put these lessons in practice even when you’re under stress.”
  • Fans Are Better Than Tech at Organizing Information Online (WIRED) — “Tagging systems are a way of imposing order on the real world, and the world doesn’t just stop moving and changing once you’ve got your nice categories set up.”

Header image via Dilbert

The habit of sardonic contemplation is the hardest habit of all to break

Angela Carter with the story of my life there. I can’t help but be skeptical about ‘Libra‘, Facebook’s new crytocurrency project. I’m skeptical about almost all cryptocurrencies, to be honest.

The website is marketing. It’s all about ’empowering’ the ‘unbanked’ worldwide. However, let’s dive into the white paper:

Members of the Libra Association will consist of geographically distributed and diverse businesses, nonprofit and multilateral organizations, and academic institutions. The initial group of organizations that will work together on finalizing the association’s charter and become “Founding Members” upon its completion are, by industry:

  • Payments: Mastercard, PayPal, PayU (Naspers’ fintech arm), Stripe, Visa
  • Technology and marketplaces: Booking Holdings, eBay, Facebook/Calibra, Farfetch, Lyft, MercadoPago, Spotify AB, Uber Technologies, Inc.
  • Telecommunications: Iliad, Vodafone Group
    Blockchain: Anchorage, Bison Trails, Coinbase, Inc., Xapo Holdings Limited
  • Venture Capital: Andreessen Horowitz, Breakthrough Initiatives, Ribbit Capital, Thrive Capital, UnionSquare Ventures
  • Nonprofit and multilateral organizations, and academic institutions: Creative Destruction Lab, Kiva,Mercy Corps, Women’s World Banking

We hope to have approximately 100 members of the Libra Association by the target launch in the first half of 2020.

So, all the usual suspects. How will Facebook ensure that we don’t see the crazy price volatility we’ve seen with other cryptocurrencies?

Libra is designed to be a stable digital cryptocurrency that will be fully backed by a reserve of real assets — the Libra Reserve — and supported by a competitive network of exchanges buying and selling Libra. That means anyone with Libra has a high degree of assurance they can convert their digital currency into local fiat currency based on an exchange rate, just like exchanging one currency for another when traveling. This approach is similar to how other currencies were introduced in the past: to help instill trust in a new currency and gain widespread adoption during its infancy, it was guaranteed that a country’s notes could be traded in for real assets, such as gold. Instead of backing Libra with gold, though, it will be backed by a collection of low-volatility assets, such as bank deposits and short-term government securities in currencies from stable and reputable central banks.

So it sounds like all of the value is being extracted by founding members. Now let’s move onto the technology. Any surprises there? Nope.

Blockchains are described as either permissioned or permissionless in relation to the ability to participate as a validator node. In a “permissioned blockchain,” access is granted to run a validator node. In a “permissionless blockchain,” anyone who meets the technical requirements can run a validator node. In that sense, Libra will start as a permissioned blockchain.

This is as conservative as they come, which is exactly what your strategy would be if you’re trying to transfer the entire monetary system to one that you control. People often joke about Facebook as ‘social infrastructure’, but this is a level beyond. This is Facebook as financial infrastructure.

Given both current and potential future regulatory oversight, Facebook are very careful to distance themselves from Libra. In fact, the website proudly states that, “The Libra Association is an independent, not-for-profit membership organization, headquartered in Geneva, Switzerland.”

To be fair,Josh Constine, writing for TechCrunch, notes that Facebook only gets one vote as a founding member of the Libra Association. It does actually look like they’re in it for the long-haul:

In cryptocurrencies, Facebook saw both a threat and an opportunity. They held the promise of disrupting how things are bought and sold by eliminating transaction fees common with credit cards. That comes dangerously close to Facebook’s ad business that influences what is bought and sold. If a competitor like Google or an upstart built a popular coin and could monitor the transactions, they’d learn what people buy and could muscle in on the billions spent on Facebook marketing. Meanwhile, the 1.7 billion people who lack a bank account might choose whoever offers them a financial services alternative as their online identity provider too. That’s another thing Facebook wants to be.

John Constine

Whereas before there’s always been social pressure to have a Facebook account, now there could be pressures that span identity and economic necessities, too.

Some good commentary on the hurdles ahead comes from Kari Paul for The Guardian, who writes:

The company claims it will not attempt to bypass existing regulation but instead “innovate” on regulatory fronts. Libra will use the same verification and anti-fraud processes that banks and credit cards use and will implement automated systems to detect fraud, Facebook said in its launch. It also promised to give refunds to any users who are hacked or have Libra stolen from their digital wallets.

Kari Paul

Would this be the same kind of ‘innovation’ that Uber uses to muscle its way into cities without a license? Or to muscle its way into cities without a license? Perhaps it’s the shady business practices beloved of PayPal? Both companies are founding members, after all!

Right now, developers can get access to a ‘test network’ for Libra. The system itself won’t be running until the end of 2020, so there’s a lot speculation. Here’s some sources I found useful, but you’ll need to make up your own mind. Is this a good thing?

Telegram cryptocurrency

I come across so many interesting links every day that I can only post a handful of them. Right now, and only a couple of months after starting this approach to Thought Shrapnel, I’ve got around 50 draft posts! This was one of them, from early January.

Telegram is great. I’ve been using it for the past couple of years with my wife, for the past year with my son and parents, and the past three months or so with Moodle. It’s an extremely useful platform, as it’s so quick to send messages. Reliable too, which my wife and I found Signal to struggle with sometimes.

The brothers behind Telegram made their billions from creating VKontakte (usually shortened to ‘VK’ and known as the ‘Russian Facebook’). They’ve announced that Telegram will raise millions of dollars through an ‘ICO’ or Initial Coin Offering. This uses similar terminology to an Initial Public Offering, or IPO, which comes through a company becoming publicly listed on a stock exchange. An ICO, on the other hand, is actually more like equity crowdfunding using cryptocurrency:

Encrypted messaging startup Telegram plans to launch its own blockchain platform and native cryptocurrency, powering payments on its chat app and beyond. According to multiple sources which have spoken to TechCrunch, the “Telegram Open Network” (TON) will be a new, ‘third generation’ blockchain with superior capabilities, after Bitcoin and, later, Ethereum paved the way.

It could lead to some quite exciting features:

With cryptocurrency powered payments inside Telegram, users could bypass remittance fees when sending funds across international borders, move sums of money privately thanks to the app’s encryption, deliver micropayments that would incur too high of credit card fees, and more. Telegram is already the de facto communication channel for the global cryptocurrency community, making a natural home to its own coin and Blockchain.

Whereas the major social networks kowtow to governmental demands around censorship, that doesn’t seem to be the gameplan for Telegram:

Moving to a decentralized blockchain platform could kill two birds with one stone for Telegram. As well as creating a full-blown cryptocurrency economy inside the app, it would also insulate it against the attacks and accusations of nation-states such as Iran, where it now accounts for 40% of Iran’s internet traffic but was temporarily blocked amongst nationwide protests against the government.

I don’t pretend to understand the white paper they’ve published, but:

The claim is that it will be capable of a vastly superior number of transactions, around 1 million per second. In other words, similar to the ambitions of the Polkadot project out of Berlin — but with an installed base of 180 million people. This makes it an ‘interchain’ with so-called ‘dynamic sharding’.

Exciting times. As I was explaining to someone recently, Telegram are taking a very interesting route into user adoption. They couldn’t go with the standard ‘social network’ approach as Facebook, Instagram, and Twitter mean that market is effectively saturated. Instead, they started with a messaging app, and are building out from there.

Source: TechCrunch

Puertopia

Dudes make millions (or billions) of dollars via cryptocurrency. Hurricane hits Puerto Rico. They decide to build a new state.

They call what they are building Puertopia. But then someone told them, apparently in all seriousness, that it translates to “eternal boy playground” in Latin. So they are changing the name: They will call it Sol.

Oops.

Puerto Rico offers an unparalleled tax incentive: no federal personal income taxes, no capital gains tax and favorable business taxes — all without having to renounce your American citizenship. For now, the local government seems receptive toward the crypto utopians; the governor will speak at their blockchain summit conference, called Puerto Crypto, in March.

Of course it does. But look at what they’ve got planned:

Some are open to the new wave as a welcome infusion of investment and ideas.

“We’re open for crypto business,” said Erika Medina-Vecchini, the chief business development officer for the Department of Economic Development and Commerce, in an interview at her office. She said her office was starting an ad campaign aimed at the new crypto expat boom, with the tagline “Paradise Performs.”

Others worry about the island’s being used for an experiment and talk about “crypto colonialism.” At a house party in San Juan, Richard Lopez, 32, who runs a pizza restaurant, Estella, in the town of Arecibo, said: “I think it’s great. Lure them in with taxes, and they’ll spend money.”

Andria Satz, 33, who grew up in Old San Juan and works for the Conservation Trust of Puerto Rico, disagreed.

“We’re the tax playground for the rich,” she said. “We’re the test case for anyone who wants to experiment. Outsiders get tax exemptions, and locals can’t get permits.”

Interesting times.

Source: The New York Times