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Newsletter #7

Crypto markets can decide their own fate, as Americans are busy enjoying Labor Day weekend. Though if the stock markets open up in red tomorrow, you should expect further drops. What are your Bitcoin targets? Let us know!

Can Holochain’s hApps conquer the dApps?

Holochain aims to be an open source framework for building distributed peer-to-peer applications. It is easier to see Holochain as a peer to peer hosting platform. Which transforms Web 2.0 sites (e.g., Facebook, Wikipedia, Twitter, Slack, etc.) into Web 3.0 systems known as Holochain apps (hApps). These are cryptographically secured and decentralized through peer hosting, a bridge to the new internet where data is user controlled. Which begs the question, can Holochain's hApps conquer the dApps?

What is Holo's value?

Holo allows anyone to turn their computer into a source of revenue. One of the preferred analogies in the Holochain community is:
Holo does to web hosting what Airbnb did to hotels.

The idea is that anyone can become a host and earn in Holo fuel. All you have to do is run the software to allocate spare storage space and power to the network. As a host you can choose which hApps you want to serve. Even set your own prices for hosting - essentially, run your hosting business as you see fit.

Are hApps better than dApps?

Applications built on Holochain are more scalable and efficient when compared to dApps built on Ethereum. This is because Holochain resembles more of a DAG based blockchain. Where hApps run on their own blockchain following their own validation rules. Meaning only participants involved in the transaction need to verify it. As a result, the network will not slow down by global consensus. In fact, Holochain apps can operate without a currency, they can even function while being offline. This is great for adoption! As you can immediately offer your application to people who may not really know cryptocurrency at all.

Looking to the future… Building and using hApps over existing legacy websites allows you to own your own data. Imagine using social networks where you can keep control of your identity. Furthermore, you can verify when you use an application that it is not sharing your data. Many centralized apps share data with hundreds of other Apps that you do not even use. Vendors can build an online presence for their shop without needing to rely on centralized systems for payments.
  • The sector of data is very heated in blockchain, you could find competitors such as: Dock, Fetch, Ocean or SingularityNET - just to name a few.
To keep it short, there are an endless amount of real-world use cases, without scalability issues. All Holochain needs to do is attract the developers and users!

What is Ruze Finance (RUZE)?

Ruze Finance is building a new DeFi based borrow and lending ecosystem. The idea is to enable lending and borrowing of stablecoins with anonymity while also possessing a unique flexible supply mechanism. Ruze token claims to have an inbuilt hourly rebase feature. As a result, it will adjust its supply to ensure the value stays stable, much like how Ampleforth works.

Unknown DeFi Project or scam?

As with many unknown DeFi projects operating primarily on Uniswap, there is a heightened risk. From checking Ruze Finance's telegram, followers have been quick to point out the dev’s github activity is dying. There have also been accusations of dumping dev share RUZE tokens onto the market. Furthermore, others claim there is a hidden mint function in the smart contract.

So this was a pump and dump scam… it does seem that Ruze is looking like an exit scam. Trading volume is going down and though the developers have locked some liquidity in Uniswap for 2 years. It is only a small amount of funds, in terms of ETH.
  • Red flags: Ruze Finance’s hourly rebase features should have gone live mid Augusts. Existing stakeholders are still waiting for the new token. As far as we can tell, this has not happened.
If this project is real… if the developers do reappear from hiatus, then watch closely for their explications. Their website claims features around wrapping any asset to collateralize for loans. Supported by a blockchain that can offer up to 7000 transactions per second. If the main product does launch, with the high gas costs the current DeFi ecosystem is facing on Ethereum, it could be a winner.

Hah, that will be the day.

What is SingularityNET? AGI Token Review

SingularityNET is a decentralized marketplace for Artificial Intelligence (AI). Where AGI token use is to access the marketplace, make payments, and provide voting power. The project is operating in the decentralized information sector, much like Ocean Protocol or Many teams have pointed out the danger of the world’s data being controlled by a small number of big tech companies. Singularity aims to change this by operating as a public AI network.

SingularityNET how does it work?

The project’s scalable beta of its decentralized AI network has now been running for more than a year. It enables developers to publish AI services to the SingularityNET network, making them accessible to anyone. Developers can then monetize the use of their services, where users need to pay in AGI token.

So you can currently describe the project as an AI-as-a-Service marketplace. The team has also made strides to facilitate onboarding with a fiat-to-crypto gateway built into the platform.

Longterm vision… the team’s idea is that SingularityNET will evolve into a self-organizing AI network. That AI agents will operate on the network autonomously, even outsource work to each other to further evolve the system.
  • SingularityNET has numerous high profile partnerships such as PayPal, Dominos Pizza, and BitSpace.
So the machines are taking over? Not really, we are nowhere near that point. Research projects in Artificial Intelligence are finding immense difficulty to access large data sets to improve their machine learning solutions. This is the true value of SingularityNET: decentralized system for worldwide data collection with methods to analyze it in a secure, anonymous way.

SushiSwap Update: Exit Scam? Takeover?

SushiSwap, the food-inspired DeFi project which aims to fork Uniswap, now has a new owner. After the anonymous developer Chef Nomi market dumped $13M of dev funds, causing the price of SUSHI to drop by 88%. The project is now led by FTX CEO Sam Bankman-Fried, in what appears to be a takeover. Here we explore the latest SushiSwap update, from exit scam to takeover.

Creator pulls an exit scam?

After repeatedly telling the community he would not dump the dev share tokens, Nomi withdrew over 20,000 ETH and 2,558,644 SUSHI from the dev fund. He then proceeded to sell all of his Sushi to ETH, which caused the community to cry exit scam. However, Chef Nomi did stick around, claiming that he did not exit scam and that he deserved the funds as he created the project.

The crypto community did not see it this way, and the price of SUSHI continued to plummet. As a result, prominent developers from the DeFi space called for action, advising the remaining dev funds should be under a multi-sig. Andre Cronje, creator of Yearn Finance, asked if he would be returning the dev funds as it appeared Nomi was walking away.

SBF the Sushi Saviour?

It was at this point that SBF took over the protocol, announcing that the keys of SUSHI will move to a multisig to ensure a future of decentralized governance. He also called for the head developer Nomi to step down immediately, criticizing that his actions had caused too much damage to SushiSwap. The community reacted very positively, and the price of SUSHI stabilized. SBF summary of the situation is below, where he mentions that SushiSwap will also be coming to Serum DEX.

a) Nomi sucks and hurt the community
b) Sushi shows promise as a dynamic AMM built by the community
c) If Nomi doesn't step down, it's over for Sushi.
d) If Sushi adds a division on Serum, we'll give 5mm SUSHI to farmers
e) Either way, AMMs coming to Serum.

A preplanned acquisition?

Many industry players reacted very positively to SushiSwap update, being acquired by FTX/Serum/SBF. The price of SUSHI was on its way down to the trash can, and this acquisition has potentially saved a lot of investments from rotten fish. The CEO of BitMEX, Arthur Hayes, stated:

“Please save me from a bad $SUSHI investment SBF. He is our new master chef.”

However, there was a more sinister talk going around the crypto underbelly. One that put forth a theory that this whole debacle was pre-planned from the start to damage Uniswap.

And is it so crazy? Sam’s biggest competitor for Serum would be Uniswap. Therefore, he stands to gain a lot by splitting up the liquidity of Uniswap and damaging DeFi on Ethereum. Not to mention, how SushiSwap appeared overnight and was able to gain near-instant listings on FTX and Binance. Sure this is a tinfoil hat theory, but wilder things have happened in the world of crypto.

Also take note

  • Binance Launchpool: Bella Protocol (BEL) an aggregated user interface for DeFi products is the first token being listed on Binance Launchpool.
  • Bancor: the development team has stated in their telegram chat that Bancor v2 is resilient to vampire liquidity clones. Also that more innovation is coming, namely, that v2 will enable all tokens to self list in the future.
  • StaFi: A Polkadot project, StaFi Protocol’s mainnet is launching today.
  • Swerve Finance: a new DeFi project claiming to be a 100% community owned version of Curve. Users can deposit funds to earn SWRV token in rewards.

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