This is not financial advise
Good morning lions hope you're having a wonderful day and enjoying your weekend. We're in another lock down in Melbourne, Australia so quite alot of time to read up and learn about new things entering the sector. I have to admit things are looking quite rough in the cryptoshphere with lots of red.
I'm tipping a return to Green in the month of August with many people preparing their tax returns for end of financial year reporting or commencing their financial year, some are even half way through theirs.
A quick run down of nations fiscal years you can see there is a cross over around the April, May and June months. In this period many people will be undertaking stock take, updating tax records and getting their fiscal responsibilities in order.
Most likely alot of under performing coins will be being dumped as losses reduce tax payments against your gains.
There would also be selling of profit and most likely transferring to fiat. By August everyone is some what realigned and I'd expect a bull run to occur with prices expanding on the previous financial year and many of the new players would start to perform well.
Onto Dfinity
Onto the nitty gritty of today's post.
By now many of you may have seen Dfinity network launch and opening price for a few hundred dollars per token which is trading as ICP. On its launch it was a top 10 crypto, a promising figure for a project that is still in its infancy.
Dfinity has been in development for 5 years by its developer Dominic Williams and was launched on 7 May 2021.
It's a pretty impressive project with a focus on being a move towards Web 3. ICP stands for Internet Computer which for me is a challenging thing to explain as I'm not a dev and my knowledge is fairly limited.
But from what I can comprehend is that this project moves to create a Decentralised Web that runs on the speed of the internet making it super fast transaction speeds.
Traditionally there are servers that all our computers connect to and information passes through. Decentralised internet from my understanding is that instead of everyone passing through the same server we are all on separate servers which are operated by nodes which are run by people like you and me if we want to operate one. Doing so requires processing transactions which we are compensated by receiving tokens, similar to how mining works for bitcoin. Or more so transactions on Hive.
There is a break down of how the system operates and what is in store Here. ICP has already launched dAPPs on its system including a similar social media platform to Facebook and Tik Tok.
Interoperability
Ethereum interoperability is the primary focus of many new and emerging block chains and ICP doesn't buck the trend with its latest announcement of scalability and interoperability of Ethereum tokens focusing on Decentralised finance you can read more Here. I think we will see more projects speaking about Ethereum interoperability due to the massive amounts of funds locked into decentralised finance. It is where the money is at current, as well as NFTs.
A passage from the above article * "can run off a node in somebody's bedroom. Whereas the Internet Computer network is constrained by the needs of the protocol to deliver this level of performance. So it actually runs off special node machines—dedicated hardware—that are run by independent partners in independent data centers around the world."* raises a few eyebrows as this almost sounds like establishing servers and developing a centralised process.
ICP has a great ambitious idea and may well be the step in the right direction for securing block chains but my thoughts go to the high costs, dedicated equipment and the use of "partners" that makes me think that this is more centralised. I don't want to criticise the approach as the tech advances I believe there will need to be some form of centralised approach. We see this already happen in decentralisation where the more of a token the greater your voting power creates a centralised power.
In order to make changes there will need to be some form of central authority. But I don't believe this should be the way if emerges.
Much of cryptocurrancy governance already replicates the corporate world of board rooms and business deals. I think the next stage is the election of a board. Where your voting power doesn't vote on every decision but rather you elect a board for a 4 year term and the board elects a CEO.
There is enough money floating around to provide wages and having an elected board from share holders is an easy approach than 10,000+ people yelling at a dev.
This is a gruelling process that puts devs on the spot with no clear direction and in some what makes a dev the default CEO.
Without clear direction or too many people shouting it creates an industry of white noise and too many great opportunities are missed. Any attempt by a project lead to alter a contract or a plan often results in a break down of the system and the recent Ethereum battles are a clear indication on why governance is important.
A project as big as ICP with a vision of what it has needs the ability to work to it and adapt as it moves along.
I found a great article on what is planned, how it works which you can read Here.
It's a big read but it's worth a look.
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It's an ambitious project.
Essentially, they are trying to be a "decentralized" ISP. Sounds great in theory, but we shall see how it pans out.
Definitely something to keep a look out for later this year and into the next cycle.
Yup, I agree and it will be one for the record books if they pull it off. I just don't know about the token price. If they want to achieve what they're setting put it will be quite expensive. Token is too high and I think that's one thing that is broken at current.
Hyper inflation.
Well, its price has dropped a lot in the last week or two.
I'm not a fan of ICP. Their system requires nodes to not only buy expensive new hardware, but also aply to be a node. Then, for people that want to run compute on the network, they have to learn and program it in an entirely new programming language. Hardly the hallmarks of a decentralized and permissionless system.
I'm biased in my opinion as I own Akash, (AKT) a different solution to decentralising the cloud. However I think that there is a line between ambitious and unrealistic and i believe that ICP is well on the wrong side of that line.
For the sake of ICP investors, I do hope I am wrong, and that ICP does succeed and perform well. But I'd encourage further research and looking beyond the hype of big exchange listings and massive VC hype.
Best of luck to ICP investors, but I'll be sticking with my Akash.
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I think you're bang on the mark there. I have raised eyebrows on this project.
It will be interesting what the future brings but I would think it doesn't sound decentralised but an expensive operation. I could be wrong.
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For comparison:
This is not my work or research, it was sourced from twitter in this post by Edward Diamond-Hands.
Like I said, I'm biased, but I really don't see ICP as a viable investment.
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Thats quite alarming. I really think that projects need to get the governance together. Election of boards and CEOs and securing actual business people to lead them and people with experience.
I think this will help drive both community confidence and provide some good policy opportunities.
The SEC and for us the ATO is attempting to develop policy but it is failing as it is focused mainly on Bitcoin and Ethereum operations which don't fit other areas.
Obviously that's where the cash is at the moment but it provides red tape to the rest of us.
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The vision is nice and they have a great deal of things planned. But honestly I would prefer if they had some actual ground breaking news because I can only say that it is hype.
Also from the other comments on the post, it looks like it requires specialized hardware and knowledge which isn't good since we want something that anybody can spin up and run.
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