Cardano Daily Discussion - November 20, 2022

Hello everyone,

Welcome to the Cardano Daily Discussion!

The standard sub rules apply here (see sidebar), with the exception that price discussion is allowed in this thread, though we encourage you to try not to make this the focus and talk about the project itself. Please ask questions, help others and be civil - be sure to get involved in Project Catalyst too!

If you're new, please make sure you're read through the newbies guide and share it with others (use the ?newbies comment command to reference it).

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⚠️ Scam Warning ⚠️

Please read the Cybersecurity guidelines for Cardano Users.

There are ongoing giveaway scams on youtube and many scammers lurking in Cardano's social channels impersonating ambassadors/moderators/official staff contacting users via direct messages.

For example, searching 'cardano' on youtube and sorting by most recent upload date shows several giveaway scams running (all videos in screenshot are scams):

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Ongoing 'giveaway' scams on Youtube

The youtube scams are automated; use stolen footage usually of Charles Hoskinson and are restreamed so to appear to be 'live'; appear to have many watchers (which are bots); use bought hacked channels and are edited to appear like official channels.

Do not be fooled!

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To be clear:

• ⚠️ There is no such thing as a Cardano giveaway
• ⚠️ Never share your seed phrase with ANYONE
• ⚠️ Never send ADA to someone promising to send you more ADA back
• ⚠️ You will never be contacted by ambassadors/moderators/staff

Please report scams on the Cardano Fraud Detection Bureau.

⚠️ Scam Warning ⚠️

Temasek should immediately cease all crypto investments

From their latest Statement on FTX (Temasek), it is clear that Temasek believes it did no wrong, hasn't learned the $275M lesson bought with public money, and continues to view the crypto space favorably.

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Here are some tidbits:

The nascency of the blockchain and digital asset industry presents innumerable opportunities as well as significant risks.

Nascency? 15 years of cryptocurrency and the only uses are speculation, money laundering, scamming, grifting, and financing criminal activities.

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As an investor-owner seeking sustainable returns over the long term, we believe that we have to invest in new sectors and emerging, nascent business models to understand the applications and impact they may have on the business and financial models of our existing portfolio, or be drivers for future value in an ever-changing world. This is why we invest in early stage companies and accept the binary risks associated with such investments.

Conflating cryptocurrency and related companies with actual technologies and businesses.

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Similar to all investments, we conducted an extensive due diligence process on FTX, which took approximately 8 months from February to October 2021. During this time, we reviewed FTX’s audited financial statement, which showed it to be profitable.

Spoiler: FTX's auditors are crypto cheerleaders: Prager Metis and Armanino. WTF has heard of them?

They are small time outfits with poor track records with the Public Company Accounting Oversight Board (PCAOB). These two firms in their 2021 reports, did not provide an opinion on the FTX US or FTX Trading internal controls over accounting and financial reporting. Because there were none (..) More here

“Never in my career have I seen such a complete failure of corporate controls" - FTX liquidator.

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We recognise that while our due diligence processes may mitigate certain risks, it is not practicable to eliminate all risks.

Cannot eliminate risk that FTX was a scam, even though they had no proper employee records, headquartered in the Bahamas with an org structure resembling other scams, had no cash management system, numerous complex related party transactions, no boards and board meetings, no proper record keeping of decision-making, etc.

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It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried, formed from our interactions with him and views expressed in our discussions with others, would appear to have been misplaced.

Defends its DD process while saying it's because it mistrusted SBF. So nothing wrong with the DD yeah? Next time just learn to trust founders better. Is that the lesson here Temasek?

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Going Forward (..) We continue to recognise the potential of blockchain applications and decentralised technologies to transform sectors and create a more connected world. But recent events have demonstrated what we have identified previously – the nascency of the blockchain and crypto industry and the innumerable opportunities as well as significant risks involved.

Hasn't learned the $275M lesson. Believes cypto space has innumerable opportunities.

There are two failings here: (1) investing in the crypto space and continuing to view the space favorably after the implosion of so many actors, and (2) performing very poor DD. This is a $275M hole that could have been easily avoided. Given the amount involved, shouldn't the public deserve a proper accounting/investigation into what happened rather than this ill-made statement?

Their latest statement is alarming to me. And this is not the first time the government has been wrong about an entire industry. Anyone remember the gov's big push into biomedical sciences 15-20 years ago? Right now, they are saying no to retail speculation, yes to digital assets. But they are just splitting hairs at this stage. https://www.mas.gov.sg/news/speeches/2022/yes-to-digital-asset-innovation-no-to-cryptocurrency-speculation.

EDIT: Some might say it is understandable that Temasek got caught up in the bubble last year, but the important point here is that it still believes in this space, even though it has been revealed to be nothing more than a cesspit of speculation and criminal activity after so many years (15 years since the invention of bitcoin).

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ESTATEX Token Presale Rounds

Listing Price: $0.00295
Total Token Supply: 6,300,000,000
Initial Launch Market Cap: $467,588

Token Release Information: 10% of tokens will be released at Token Generation Event. There is then a 4 month vesting schedule before 10% of tokens are released monthly

#ESTATEX #ICO #CRYPTO #BITCOIN https://estatex.eu/

GBTC Trust Appears To Be Fractional

https://i.redd.it/hgvsakx3g01a1.png

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What are Token Standards?

Any digital asset that may be transferred between two parties is known as a token in the Blockchain ecosystem. The basic token of Bitcoin is BTC, but tokens can also be created and hosted on an existing blockchain using a smart contract. Some tokens, known as stable coins, track the value of fiat currency. Others, referred to as NFT, can represent antiques or works of art. Finally, tokens can represent ownership rights to real-world properties or businesses. This blog will focus on the primary token kinds and standards.

You should familiarize yourself with the definition of a smart contract standard to completely comprehend what a token standard is. A smart contract standard essentially outlines the requirements that a smart contract must meet to use the underlying blockchain network. These standards are application-level to blockchains built for smart contracts and other decentralized apps. Token standards, name registries, library or package formats, and many other things can be included in the smart contract standard.

Due to the fact that they essentially lay out the guidelines for utilising the blockchain network, smart contract standards are significant to the network because they might improve communication across different smart contracts operating in the same blockchain network. The growth of smart contracts and their compatibility can also support the expansion of the entire blockchain ecosystem.

It is useful to comprehend how a smart contract standard operates before diving into token standards. Fundamentally, smart contract standards are the requirements that a smart contract must follow in order to perform as intended on the underlying blockchain network.

For example, name registries, library-package formats, and token standards are examples of application-level specifications. Anyone with the required skills can build their own ERC token using this set of smart contract guidelines and precisely laid out requirements. In a nutshell, they make it possible for smart contracts to carry out their essential duties.

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Token Standard

To comply with common standards, a smart contract must adhere to a set of rules and an interface known as the token standard. Token standards usually specify how to transfer tokens and how to maintain a consistent record of those transfers.

A standard's several implementations are allowed to coexist as long as they all adhere to the standard's interface and rules. For example, when a new project releases a token, it continues to be interoperable with the existing decentralized exchanges, wallets, etc. Standards ensure that smart contracts remain compatible.

ERC-20, ERC-721, ERC-777, and ERC-1155 are the four most widely used token standards, and Ethereum is the platform of choice for the majority of blockchain smart contracts.

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Common Token Standards for the various Blockchains

a) Ethereum

A collection of technical documents called the Ethereum Request for Comment (ERC) provides instructions on how to create a smart contract. They enhance communication between applications and smart contracts and establish a specific set of functions for each type of coin.

An ERC may be created by anyone. However, it needs to go through the Ethereum Improvement Proposal (EIP) procedure, which is a document with the proposed features and procedures for the Ethereum blockchain network.

The Ethereum core developers will review and evaluate a developer's proposal after it has been submitted. The proposal will be approved, finalised, and put into use if the community views it as a crucial improvement to the blockchain ecosystem.

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Here are some of the most popular ERC token standards.

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ERC-20 Token Standard

A roadmap for producing fungible tokens on the Ethereum network is provided by the ERC-20 token standard.

Fungible refers to the property of being equal to and interchangeable among all tokens (or fractions of tokens). For instance, Alice's $1 and Bob's $1 are equivalent. They can trade dollars because they have the same value. 1 ETH has the same value as any other ETH, just like fiat money, which is fungible.

ERC-20 tokens are created by organisations and tech-focused businesses more often than other types of digital assets. They enable the organisation to alter the utility of the token, for example, by adding voting and reward features. The ERC-20 token standard is flexible, yet every ERC-20 coin has a set core functionality.

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https://preview.redd.it/ioxp4fiatw0a1.jpg?width=1320&format=pjpg&auto=webp&s=2f33f1d37117ec025204440b2c5101ba7a188b92

An ERC-20 token must carry out the following six essential tasks:

Total Supply - Used to determine a given ERC-20 token's total quantity of tokens.

Balance Of - It is used to calculate the token balance in an Ethereum wallet.

Transfer - Enables the user to assign a token's ownership to another.

Transfer From - Comparable to the transfer function in operation, with the extra benefit of enabling contracts to transfer tokens on behalf of users.

Approve - It is used to limit the number of tokens that a smart contract can withdraw.

Allowance - It enables the use of tokens from a specific balance and grants access to external addresses.

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ERC-721 Token Standard

ERC-721 is a standard for non-fungible tokens, in contrast to ERC-20, which is a fungible token standard (NFTs). A unique class of cryptographic tokens called non-fungible tokens are not interchangeable with one another according to their own specifications. As a result of each token's distinctive requirements, it cannot be traded for another. They are therefore frequently used to symbolise digital collectibles, game objects, digital artwork, event tickets, domain names, and ownership records for tangible assets.

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ERC-777 Token Standard

To overcome the drawbacks of ERC-20, there is ERC-777. Through a system known as "Hooks," this token standard improves the efficiency of sending and receiving tokens by smart contracts. Sending tokens and informing a contract are two separate messages that are combined into one by the function called hooks. Additionally, the ERC-777 adds the ability to reject transactions coming from addresses that are on a blacklist.

Another benefit of the ERC-777 token standard is that it preserves ERC-20's backward compatibility rather than making it obsolete. In other words, since both the ERC-20 and ERC-777 standards use the same fundamental functionality, tokens created in accordance with any standard can freely interact with one another.

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ERC-1155 Token Standard

The goal of the ERC-1155 token standard is to combine the best features of its forerunners to produce fungibility-independent and gas-efficient token contracts. It is, in simple terms, a standard for contracts that can handle various token types. Or, in the words of Enjin, the company that developed them, "a single smart contract that can govern an endless number of tokens."

The Enjin team created this token standard to solve ERC-721's drawbacks, particularly the inflexibility of batch transfers. For instance, on ERC-721, a user would need to execute many transactions in order to transfer multiple NFTs. Due to the increase in transactions, the network would become overloaded and may experience high transaction costs.

This is a problem that ERC-1155 directly addresses by facilitating batch transfers, which enable the consolidation of numerous assets into a single smart contract. By doing this, it considerably lowers the possibility that a transfer may result in network congestion while also increasing transaction efficiency.

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Token Standards for other Blockchains

Everybody basically has their own set of rules when it comes to the several smart contract protocols that are now in use. Several other blockchain initiatives, besides Ethereum, concentrate on the development of smart contracts. We will introduce some well-known projects in this part together with the corresponding token specifications.

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Tron Blockchain

Tron Blockchain has three blockchain standards.

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TRC-10

On the Tron mainnet in 2018, TRC-10 was the first token standard to be made available. TRC-10 tokens are frequently used as a payment method in decentralised applications and to build blockchain products because they are simple and inexpensive to produce.

They don't require support from the Tron Virtual Machine (as do TRC-20 tokens, see below), so issuers can create a TRC-10 token without needing to know programming languages. They can be issued through an application programming interface (API) or smart contract.

By spending 1,024 TRX, every Tron network account can produce a TRC-10 token. The only cost to utilise them after that is often the bandwidth used to transport them.

Before producing a TRC-10 token, users must provide the token's name, market capitalization, exchange rate to TRX, duration of circulation, number of bandwidth points it consumes, and stake in the token.

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TRC-20

The TRC-20 standard is what Tron uses to include native Tron coins in smart contracts on the Tron network.

Using the Tron Virtual Machine, which serves as the platform for Tron smart contracts, TRC-20 tokens are issued. The standard for producing fungible tokens utilising the Ethereum network, ERC-20, and TRC-20 are completely compatible.

Like TRC-10 tokens, TRC-20 tokens can be exchanged for other tokens of the same kind, making them fungible like TRC-10 tokens.

The fact that developers can incorporate more intricate logic into their smart contracts with TRC-20 makes it possible to compare it to TRC-10 in some aspects.

Issuers should be aware of the expenses, nevertheless. According to the Tron whitepaper, TRC-10 token translation expenses are 1,000 times less expensive than TRC-20 token translation fees.

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TRC-721

On the Tron network, non-fungible tokens (NFTs) may be issued in accordance with the TRC-721 rules.

A non-fungible token is one that is cryptographically distinct; unlike fungible tokens, they have a unique identifier and users cannot exchange them for another asset that is exactly the same.

The ERC-721 Ethereum NFT standard is compatible with the TRC-721 standard, which was released in late 2020.

TRC-721 allows developers to tokenize any tangible real-world object, such as works of art, music, clothing, and real estate, as well as to generate NFTs that represent special digital assets, such as sports highlights, GIFs, or in-game avatars.

Each TRC-721 coin has a blockchain address that serves as a proof of ownership for the person holding it.

There is much more to discuss about the token standards of other blockchains which we will do in the next blog.

🐋🐋 Grayscale's GBTC Shares Set a Record Losing 43% Against Bitcoin

👉 GBTC's share price against Bitcoin continued to plummet after news that Grayscale's sister company Genesis Trading blocked withdrawals because of its involvement from FTX.

👉 According to data from yCharts, the spread between the price of Grayscale-issued GBTC shares and the original asset #Bitcoin is -42.69%, the lowest level since the product was created in 2017.

👉 GBTC is a fund product issued by #Grayscale. Accordingly, the company will hold a certain amount of Bitcoin (BTC) in the Grayscale Bitcoin Trust (GBTC). The fund's GBTC shares can be purchased by individual and institutional investors through a US stock brokerage account, making it a method used by many US entities to gain indirect exposure to Bitcoin. .

👉 During the period 2017-2020, the GBTC price has always remained above the market price of Bitcoin, when demand overwhelms supply. The GBTC price was at one point 100% higher than the Bitcoin price, but has continuously dropped to around the 20-40% region in the following years.

👉 Thanks to the popularity of #GBTC, #Grayscale subsequently created more similar fund products for #Ethereum (ETH) and other major altcoins in the crypto market. Data provided on Grayscale's website confirms that as of November 18, 2022, Grayscale is managing assets of up to 14.7 billion USD, of which BTC owns is 10.5 billion USD, followed by is #ETH with $3.6 billion.

👉 However, since the beginning of 2021, GBTC's share price has continuously declined when demand is gone. Going to 2022, when the #cryptocurrency market plummeted after many big events, GBTC continued to be sold off by investors. In November, when it was announced that Genesis Trading had blocked withdrawals because of its involvement in the bankruptcy of #FTX, GBTC set a new bottom when it fell nearly 43% compared to the real value of Bitcoin.

https://preview.redd.it/87t6bdtfxw0a1.png?width=1824&format=png&auto=webp&s=298172f4f04b09bd3866ddbe286fe72d76d87920

Bitcoin Audible: FTX & Alameda, Through the Looking Glass [NYDIG] - podcast summary

In light of recent events, we are rescinding our previous piece on the ethical, moral, intellectual, economic, and financial bankruptcy of non-Bitcoin crypto and DeFi. We continue to believe that investing in non-Bitcoin crypto and DeFi is a risky proposition, and urge investors to exercise caution..

In light of recent events, the founder of Nightingale has rescinded a previous piece condemning non-Bitcoin crypto and DeFi, admitting that it has failed. He urges people not to invest in these things, as they are prone to blow ups. Nightingale is a Bitcoin company and always will be..

In times of market turmoil, it's important to remember that risk management is key. Stone Ridge Asset Management has a strict policy of only investing in projects that they believe have a high chance of success, and of avoiding anything that could potentially blow up. They also seek to partner only with people they trust. If you're ever in a situation where you're not sure about an investment, it's better to walk away..

The Stone Ridge Holdings Group is having a record year and 2023 is setting up to blow away 2022. The company has been building its portfolio of business arcs ahead of the central bank driven no yield flood. The embodiment of the company's risk management philosophy and flood preparation is the 1010 portfolio in Stone Ridge asset management..

Bitcoin is continuing to power personal sovereignty and foster political freedom, despite recent headlines. Stone Ridge is committed to helping people access decentralized money and preparing for an uncertain future. The FTX and Alameda Saga is one example of how Bitcoin is making a positive impact..

In a nutshell, FTX and Alameda Research suffered financial setbacks that caused ripple effects throughout the crypto industry. This is still an unfolding story, but it highlights the importance of due diligence and understanding the risks involved in investing in cryptocurrency..

Alameda Research, a trading firm founded by SPF, has been called into question after a Coin Desk article detailed its balance sheet. The article highlights the close relationship between Alameda and FTX, and cast doubt on the firm's financial position..

In short, the CEO of Binance made a tweet that resulted in the downfall of FTX, with Alameda Research (the prop firm that owns FTX) being forced to sell FTT tokens at a loss. This caused FTX to slow withdrawals, sparking concerns among users..

The collapse of FTX highlights the importance of exogenous capital and the dangers of a system that is entirely reliant on itself..

The crypto industry is reeling from the collapse of Alameda Research and FTX, with many wondering who else might be affected. While the full extent of the fallout is not yet known, it appears that some major players have been exposed, including Coinbase, Genesis Trading, and Multicoin Capital. The industry is now soul searching in the aftermath of these events, with many concerned about the future of the space..

Bitcoin Audible's latest episode features an interview with Ross Stevens, founder of cryptocurrency custodian service BitGo. Stevens discusses the importance of holding your own keys and using a custodian to keep them safe. He also offers a discount code for listeners to get 5% off their first order..

There is a power in being kind and not gloating when someone has been proven wrong, especially when that person has lost a lot of money. This is something that many Bitcoiners have experienced, and it is a good lesson to remember..

Some people in the crypto community are too quick to judge those who were scammed by FTX, when in reality many of them were simply misled by the hype around the project. It's important to have empathy for these people and try to help them learn from their experience, rather than simply insulting them..

The FTX exchange was called out this week for promoting and supporting a ridiculous scam. FTX owns almost all of the tokens for their platform, which allows them to wash trade and artificially manipulate the price. Alameda's balance sheet was posted, showing that FTX has a large amount of debt and their FTT tokens are essentially worthless..

FTX was over collateralized with FTT tokens, which were essentially worthless. The platform was only running on $90 million in daily liquidity, and couldn't have sold even $10 million without crashing the markets. It's rumored that FTX had no Bitcoin at all, meaning that all the people who thought they had Bitcoin balances on the platform were actually holding nothing..

It is possible that Sam Bankman-Fried, the CEO of FTX, was involved in a money laundering scheme that funneled money from Ukraine to the Democratic Party. This is based on speculation and has not been confirmed..

The idea that the government could be responsible for false flag attacks is not so absurd, and in fact, our government is responsible for way worse and more corrupt actions. The bitcoin banking system is fractional reserve, and if there is a bank run, there is no lender of last resort. This is why you should stay away from crypto..

There is speculation that the recent hack of the KuCoin exchange may have been orchestrated by the US government in order to create a pretext for heavier regulation of the cryptocurrency industry. This is based on loose connections and allegations, and nothing is concrete at this time. However, it is something that is worth keeping an eye on, as it could have major implications for the future of the industry..

It seems that there may have been some foul play involved in the recent FTX exchange bankruptcy filing. Vitalik Buterin has been excusing and apologizing for FTX CEO SBF, leading many to believe that he is preparing to defend himself in the event that he is implicated in the scandal..

An employee of FTX appears to have moved a large sum of money to an Ethereum account just before the company was hit with US sanctions. If the sanctions are enforced, the account could be frozen, preventing the employee from accessing the funds..

Bitcoiners are the only ones who have been consistently critical of Ethereum and other proof-of-stake cryptocurrencies, warning that they are vulnerable to 51% attacks. Now that a 71% attack has occurred, it is clear that these concerns were well-founded..

It's possible that Block Five is declaring bankruptcy, according to rumors. This would be bad news for people who have invested in the company or are using its services..

Don't mess with shitcoins, because you never know what's really going on behind the scenes. Even third-party audits can't be trusted, because there's no way to know what the liabilities are. Anyone offering high interest rates on Bitcoin savings should be considered suspect, because they could be rehypothecating the funds and you have no idea what they're doing with them..

Bitcoiners need to be careful of the dangers of playing the crypto casino with leverage, as it can lead to disaster. Those who engage in such practices and those who associate with them will pay the price. Hopefully people will learn that Fiat financial practices don't work in a Bitcoin world and adapt accordingly. In the meantime, the market may be in for a rough ride..

Bitcoin could potentially benefit from the problems Ethereum is currently facing, but it is still uncertain how Bitcoin will respond. Stack as much as you can while the opportunity is there..

This podcast is a part of the C-suite radio network. In this episode, the speaker talks about how Bitcoin is a lesson in staying humble, stacking sats, and holding your own keys..

Source: https://www.askd.io/clip-summary?recordId=recbSlSJiFEeQ51ch