Notes from The Singularity

Month: August 2022

Ever wonder what the value of this expression is?

here´s an estimation using a few lines of code and reaching 10e10 in exponentially increasing steps.

Most #DataScience and #AI arrives to conclusions that people already know, but faster.

The real challenge is in finding things we really don’t know.

Even more: finding things we don’t know that we don’t know.

Valuation of Crypto Projects

Lets review some notes on valuation of crypto projects, using technical (network) valuation and community valuation.

The problem with predicting the movements of #cryptocurrencies or any other digital asset is that, since most of them do not generate future income (like stocks), it is not possible to calculate a long-term price or #LTV for them.… Read more...

Network Effects on Fiat vs Cryptocurrencies

Traditional #fiat currencies work because each one has in parallel a more or less extensive market where it is used and accepted. The value of money depends precisely on that acceptance.

In contrast, the concept of cryptocurrency is intrinsic to a #blockchain. The two cannot be separated because the former are not really currencies (the name is misleading), but essential parts of a blockchain through which #value is transmitted.… Read more...

Game Theory and Alignment of Incentives in Web3

The fundamental idea behind #web3 is about the alignment of incentives among the participants. But designing incentives to create #networks is complicated.

👉 This is the reason many the Web3 projects are not delivering any value or building real #communities.

✅ Game Theory to the rescue

There is a whole sub-discipline of economics and #GameTheory dedicated to studying how to design protocols that encourage rational actors to behave in socially desirable ways: it is called ‘Mechanism Design’.… Read more...

We are Locked-in in this System Until Collapse

The main problem with future´s self-reliant #ecotechnical communities is that there are very few paths to there from where we are: our industrial consumer civilization.

Reason is that you can not easily abandon the money economy because everything you do will have to produce enough excess to feed the huge upside down pyramid of banks, corps, bureaucracies, military, etc.… Read more...

The risk is in the idea, not in the diffusion

I have had to sign a confidentiality agreement to help someone with a business idea…

But the risk is in the idea, not in the diffusion.

#Entrepreneurs who hide their ideas never realize that the risk is not in the diffusion, but in the idea itself.

They tell themselves that if nobody has done it yet, it is because nobody has thought of it, and that they are the first.… Read more...

Only do your One Thing

Your project´s ‘One Thing’ falls at the intersection of the 3 truths:

– The one thing you are most passionate about
– The one thing you have a realistic shot at being the best.
– A huge untapped market opportunity

Only do your One Thing

Say no to everything not aligned with your One Thing.

Make them pay since the start

Make customers pay since the start

Your product is BS and you are going to fail if you don´t ask users to pay.

You don’t even need a product to do this: ask them to pay even before you have a product.

People don’t pay for products, they pay for what you believe a product to be.

You can prove Product-Market fit with just a landing sales page.… Read more...

NFTs: Next Big Thing in Advertising?

New brand storytelling and audience interaction methods have emerged that allow companies to use #NFTs to boost brand awareness, because of the fan base they attract.

And as #web3 continues to evolve and grow, so will the adaptation of NFTs in the #Metaverse economy as:

✅ game assets
✅ membership passes
✅ virtual land ownership

The problem with royalties:

A typical brand marketing campaign today pays a creator up-front for a partnership.… Read more...

Confusing Scarcity and Value

⚠️ Don´t fall into the trap of confusing scarcity with value

Most of the crypto community boasts about the uniqueness of an NFT as a source of value.

Confusing #scarcity with value is one of the most widespread fallacies in this industry. And it generates all sorts of nonsense on a daily basis.

👉 A stone on the ground is always unique; no 2 are identical.… Read more...

The system uses centralization in all its forms to extract value from added value activities

Ego, short-termism, and greed for astronomical returns in a public way are part of that behavior.

That is why most of what is done in #web3 is actually an extension of the system.

And that´s why it will be treated as such.… Read more...

How to Achieve Growth

#Growth is the process of taking something that was once complex and making it simple, sistematized, and subconscious.

This how you slow down time, this is how you grow. You step into #chaos and create #simplicity and knowingless.

You can get to the point where you can handle chaos that most people would never dream of -because you know you can deal with it, learn it, and own it-.… Read more...

Is Bitcoin a DAO?

Some believe that #Bitcoin is an excellent example of a DAO organization. Lets see why this could be the case.

COMMUNITY TEST

✔️ BTC scales via the power of its community.

✔️ Main added value is the alignment of incentives among miners & nodes, users and developers…

✔️ … forming all together a community of stakeholders interested in staying together for different reasons.… Read more...

Vitalik Buterin is Right

Historically, encryption technologies have always been the preserve of the powerful.

But in the 1970s and 1980s, mathematicians at Stanford and MIT made a series of breakthroughs that made it possible to encrypt messages so that only the intended recipient could read them. And also impossible to break (decrypt) by even the most powerful computers.… Read more...

Are DAOs legal entities?

#DAOs without a corporate entity expose all their members to unlimited liability, turning back the clock on centuries of risk management.

⚡ In most of the world DAOs are still not legal structures. Exceptions are Vermont, Wyoming, and Tennessee (1).

⚡ Truth is that LLCs in the US have only been around since the 1970s, who’s to say DAO is not the #LLC of the future?… Read more...