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Ethereum Co-Founder Joseph Lubin: Blockchain Will Be Most of the Economy in 10-20 Years

Ethereum co-founder Joseph Lubin said that he expects blockchain to be most of the global economy in 10 to 20 years.

Ethereum (ETH) co-founder Joseph Lubin said that he expects the global economy will be 10 times larger in 10 to 20 years, when blockchain is fully ramified, and blockchain will be involved in most of it. Lubin made the statement at the SXSW conference in Austin on March 14.

During the same keynote, Lubin also pointed out that just as nowadays there aren’t many “normal” people using blockchain-based systems, “there weren’t a lot of ‘normal’ people firing email around in 1983.”

He also reiterated the promises of Ethereum 2.0, stating that there are a lot of inefficiencies present in Bitcoin (BTC) and the current version of Ethereum that Ethereum 2.0 won’t have:

“In Bitcoin and currently in Ethereum, you need to have specialized hardware, burn lots of electricity, waste lots of computation, to basically keep everybody in sync. [With Ethereum 2.0, in 18 months] we’ll have a blockchain system much more powerful and scalable that uses orders of magnitude less energy.”

As Cointelegraph recently reported, Lubin also said that blockchain technology and decentralization can benefit content creators and journalists.

The statements mentioned above are also in line with what Lubin said in November last year, when he told a New York Times interviewer that with blockchain, society will move “from a scarcity to an abundance mindset.”

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Ethereum Co-Founder Joseph Lubin: Blockchain Can Benefit Artists, Journalists

Joseph Lubin said that blockchain-based platforms can give artists more control over how their content is distributed as well as cut out middlemen.

Ethereum co-founder and ConsenSys creator Joseph Lubin said that blockchain technology and decentralization can benefit content creators and journalists. Lubin spoke about different industries that are benefitting from blockchain technology in a video on March 12.

In the video, Lubin said that artists are “set to benefit quite dramatically” from blockchain, as it allows them to attach policies and stipulations for how the content is consumed and shared i.e. derivative works, streaming, public performances, etc. In Lubin’s view, it also allows them to eliminate middlemen:

“I think artists in the music industry on average capture about 11 or 12 percent of the value in the industry and those big record companies are sucking up 70 or so percent. We can replace those record companies with smart contracts on the Ethereum platform.”

Lubin continued that, while there will still be intermediaries such as promoters, they will not be able to “get to a commanding position where they’re extracting enormous rents just because of their intermediary role.”

In regard to journalism, Lubin said that blockchain-driven platforms like Civil could help the “gutted” journalism industry to deliver content directly to the consumer and “return ethics to journalism.” Lubin said that a platform like Civil allows newsrooms to form a code of ethics and stake that security bond on the platform:

“If they break that pledge in some way, their readership, their listenership can call them to task, can challenge their stake and potentially have them bumped off the platform.”  

Earlier this month, Civil announced its official launch, despite a lackluster initial coin offering last year. The platform — which aims to provide an alternative business model to the journalism industry — now allows participants to purchase Civil membership, including CVL tokens which will represent members’ voting power within the Civil ecosystem.

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Ethereum Price Analysis: ETH/USD Delicate at $100, Price may Drop to $1 or Snap Back to $250

Latest Ethereum News

There are three main pieces of infrastructure that supports the Ethereum Ecosystem: Truffle, Infura and MetaMask. Truffle is a “A world class development environment, testing framework and asset pipeline for blockchains using the Ethereum Virtual Machine (EVM), aiming to make life as a developer easier” while Infura is an “API and developer tools providing the necessary infrastructure and scaling capabilities for dApps”.

On the other hand, MetaMask is an Ether and ERC-20 wallet that runs on Infura. Aside from securing your coins private keys, it also acts a bridge for dApp exploration right off your browser. It also allows users to run dApps without the need of downloading the whole Ethereum full node.

Now, the exponential growth—and underlying demand is the main reason why Joseph Lubin is convinced that Blockchain is more than a market but a movement. Infura alone has had more than 10 billion API request. MetaMask has more than 10 million downloads and Truffle–which is used by ShapeShift, Aragon and others—and MetaMask has one million downloads.

That’s not all, other metrics that show increasing base activity despite free falling ETH prices includes the number of active ETH addresses—exceeding 48 million. At the same time governments are positive on the chain with Austria via Oesterreichische Kontrollbank (OeKB) issuing $1.35 billion worth of federal bonds back in September.

ETH/USD Price Analysis

ETH/USD Price Analysis

There are hints of support but at $12 away from $100, we are far from convinced that there is a shift of momentum and bulls are back in contention. At spot prices, ETH/USD is up 2.4 percent in the last week and down two percent from yesterday’s close.

Still, ETH/USD is trending in shaky grounds and how prices react at $100 could be shaping for ETH in the short to medium term. Ideally, we would like to see rallies above $130 after a 92 percent drop from 2018 peaks.

Trend: Bearish

Of course, after 11 months of steady declines that have seen ETH prices drop more than 90 percent from Jan peaks, the path of least resistance is southwards. This means ETH/USD is bearish and from the chart volatility is low but nonetheless, prices are trending within a bear breakout pattern following steep declines of Nov 19.

Volumes: Stable but Bearish

Notably, in our daily chart is Nov 25 bull pin bar. While it did print as a bull in an otherwise steep decline shoring prices and preventing a devastating crash below $100, the bar was backed by above average volumes—1.179 million versus 620k. And even after that ETH/USD prices are still oscillating within Nov 25 high low.

Candlestick Formation: Accumulation/Distribution, Bear Breakout Pattern

Because of Nov 19 high-volume, bear bar breaking below $160—the lower limit of support line, ETH/USD is trading within a bear breakout pattern. Now, because of the past seven days stability, ETH could either be in a distribution or accumulation phase depending on breakout direction. Rallies above $130 could be the latter while discouraging drops below $100 shall be a distribution and bear trend continuation.

Conclusion

Trading ETH/USD is simple. Bears are in charge. But, convincing breaks above $130 at the back of strong volumes shall usher in the next wave of bull pressure aiming at $160, $250 and even $400. If not and there is distribution further exerting pressure on ETH leading to price collapse below $100, then we could see drops re-testing $40 by end year.

All Charts courtesy of Trading View.

This is not Investment Advice. Do your Own Research.

The post Ethereum Price Analysis: ETH/USD Delicate at $100, Price may Drop to $1 or Snap Back to $250 appeared first on Ethereum World News.

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Joseph Lubin: ETH Incubator ConsenSys Gets ‘Lean and Gritty’ in Competitive Market

Ethereum blockchain startup and incubator ConsenSys plans to streamline and toughen its business style amid a competitive blockchain space.

Major Ethereum (ETH) blockchain startup and incubator ConsenSys plans to streamline and toughen its business style amid an increasingly “crowded” competitive blockchain space. The shift in strategy was reported by online tech journal Breaker on Dec. 3.

Breaker cites a letter to staff from ConsenSys CEO and Ethereum co-founder Joseph Lubin, reportedly sent late last Friday night, which outlines a new phase in the Brooklyn-headquartered company’s work. As per the letter, ConsenSys — which employed over 1,100 employees as of February 2018, across 29 countries — is entering what Lubin calls “ConsenSys 2.0.”

This, according to Breaker, represents a more efficiency and revenue-driven approach company-wide, with ConsenSys Ventures — its investment arm — set to become closer to a “traditional startup accelerator.” Lubin’s letter reportedly told staff that:

“We must retain, and in some cases regain, the lean and gritty startup mindset that made us who we are. We now find ourselves occupying a very competitive universe […] to ‘succeed wildly’ […] we must recognize that what got us here will probably not get us there, wherever ‘there’ is.”

In an interview with Breaker on Nov. 30, Lubin clarified that ConsenSys’ leadership will “get a lot more rigorous in terms of milestones and timetables, [even if that entails] dissolving projects if we’ve come to the conclusion that our earlier assumptions were incorrect.”

Projects under ConsenSys’ wing, the letter has reportedly outlined, will be judged by three broad metrics: revenue (or return on investment, even if based on projected future value), benefit to the Ethereum ecosystem, and social good.

While the company plans to reassign staff from shuttered projects to other initiatives, Lubin reportedly “did not rule out layoffs” in his interview with Breaker.

Part of the “lean and gritty” mentality extends to a parsimonious approach to staff expenses, with a dedicated team for cutting travel costs and a proprietary mechanism in the works for the firm to compare prices across hotels.

Lubin told Breaker that even while the projects under its oversight remain “agile,” the company as a whole has become unwieldy. While stressing the continuity in the company’s vision, he noted that ConsenSys 2.0 would entail “focusing […] [and] adding rigor [and] accountability” in the midst of what he called an industry-wide price “contraction.”

As reported last month, decentralized social networking platform Steemit is laying off more than 70 percent of its staff in the wake of the recent crypto market crash, as well as beginning a structural reorganization.

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Ethereum Cofounder Joseph Lubin Doubts Tether Bitcoin Price Manipulation

Ethereum cofounder Joseph Lubin said on Yahoo Finance’s Final Round August 28, that he doubts manipulation accusations against stablecoin Tether (USDT).

Founded in 2014, Tether was “the first” blockchain-powered platform that allows for the tokenization of fiat-backed cryptocurrencies.

In June, after the publication of a study conducted by analysts from the University of Texas, USDT fell under suspicion of Bitcoin (BTC) price manipulation in 2017, when the BTC price surged to an all-time high of $20,000. The paper claims that “purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices.”

While many cryptocurrency enthusiasts are convinced Tether is lying about its backing assets, Lubin is unconvinced of manipulation accusations against the token and the company behind it. He said that “based on our analysis, which involves just talking to a bunch of people in the space, we do believe that [USDT] are backed 1:1 by U.S. dollars in bank accounts” although it is “still not 100 percent solid in terms of a story, from my perspective.” He added:

“…with respect to market manipulations, I’m not sure that market manipulations are related to Tether directly, if they do exist. It has been an unregulated market set of exchanges that enable big players to do what they want to do […] Ideally we’ll get a little better regulation of those centralized exchanges at least.”

In June, law firm Freeh Sporkin & Sullivan LLP conducted an unofficial audit of Tether’s accounts, where it was discovered that USDT did indeed have enough funds to back each token 1:1 with U.S. dollars. However, the firm noted that it is, “not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles.”

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Market Woes No Concern For Coinbase With 50k Daily Signups

Cryptocurrency markets have rebounded a little today following a week of heavy losses. Those in the industry are unfazed though as exchange giants such as Coinbase continue to grow at a staggering pace.

At an interview at the Bloomberg Players Technology Summit in San Francisco Coinbase CEO Brian Armstrong said that the exchange was signing up 50,000 new users last year. His comments during the interview were still extremely positive in an environment where market sentiment has been bearish all year.

As one of the world’s leading crypto exchanges with 25 million customers Coinbase can be considered a good indicator of the overall condition of the industry and its future. Looking at the exponential growth that the company has had over the past few years is a testament to that. Armstrong elaborated stating;

“This technology is going through a series of bubbles and corrections. So we’ve actually been through four or five of them now where Bitcoin made this big run up in price and there was irrational exuberance, and then it corrected back 60 or 70 percent. Each time it has done that it has reached a new plateau which has kind of matched the growth of the company. If you go back to 2012-13 when we started, we had 500 people a day signing up. After the next bubble and correction, we had 5,000 people a day sign up, and now it’s more like 50,000 a day signing up.”

He also compared things to the start of the internet when companies came and went as fast as cryptos appear to be doing today. When questioned about the SEC he said the scrutiny was justified and that they have been good to work with in weeding out bad actors while approving genuine operators.

Ethereum co-founder, Joseph Lubin, meanwhile has attributed the current market volatility purely to speculation. In a Bloomberg interview he stated;

“We’ve seen six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening but when you look back they look like pimples on a chart,” before adding “With each of these bubbles we have a tremendous surge of activity and that’s what we’re seeing right now.”

Lubin continued to say that traders are causing the price spikes and dips but developer activity has increased by two orders of magnitude since last year’s peak. He is not concerned about the current market slump affecting the growth of the ecosystem and its adoption and neither, evidently, is Coinbase boss Armstrong.

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Ethereum Co-Founder Joseph Lubin: Crypto Price Collapse Will Not Constrain Further Growth

Ethereum co-founder and ConsenSys Inc. CEO Joseph Lubin said in an interview with Bloomberg Aug. 14, that he does not see the recent cryptocurrency price collapse as a constraint to further growth.

In а recent discussion on the state of the cryptocurrency market with Bloomberg, Lubin said that the value surges of the past year were just another bubble like the previous “six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening.”

He added that on close scrutiny those peaks look like “pimples on a chart.” Lubin said that each bubble, such as the current one, has brought a significant burst of activity. He stated:

“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”  

Lubin attributed volatility to “trader types,” i.e. speculative investors, saying that it is not necessarily an indicator of underlying infrastructure enhancement. When asked about how the price volatility affects him, Lubin answered:

“So we can look at the price and make growth plans and projections, and we’re still on track, basically. So this is not unexpected.”

Yesterday, Ethereum (ETH) dropped to a 9-month price low, and was trading at $288. The last time the altcoin fell below the $300 price point was in early November, 2017. This morning losses expanded to 16 percent on the day and almost 35 percent over the last week.

Currently, ETH is trading around $263, down 7 percent on the day, with a market capitalization over $26 billion.

Ethereum’s 24-hour price chart. Source: Cointelegraph Ethereum Price Index

Ethereum’s 24-hour price chart. Source: Cointelegraph Ethereum Price Index

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Joseph Lubin Names Berlin as The Most Important City in The ‘Blockchain Cosmos’

Ethereum co-founder Joseph Lubin referred to Berlin as “the most important city in the blockchain cosmos”, Cointelegraph auf Deutsch reported July 25.

Lubin said that, “Berlin has the infrastructure, Berlin has the talent, the really good programmers are here.” Lubin added that, if Berlin wanted to maintain its status as a blockchain hub,  “the government needs to set up more programs to promote blockchain.”

According to Lubin, blockchain is still in its infancy. The Ethereum co-founder, who now is concentrating on app development on the Ethereum blockchain with his company ConsenSys, said:

“We’ve seen a lot of bubbles bursting, and will do so more often in blockchain and cryptocurrency. At $30, Bitcoin was a bubble, at $200 and at $20,000 even.”

Even though he is less interested in cryptocurrencies, the hype surrounding Bitcoin is anything but bad, according to Lubin, because it will bring more money to the market and drive technology forward.

Lubin’s main concern is developing the next stage of the Internet, which he refers to as Web 3.0. According to Lubin, the “old web” has too many mistakes; people do not have control over their data, meaning companies can capitalize on user data, and there is no quick system for settling cross-border payments.

Lubin said, “We have to get away from silos, from companies that collect data and make money, and people should have that back in their hands.”

In an interview with Cointelegraph, Lubin said that when Vitalik Buterin came up with the description for the Ethereum platforms, “It was essentially the most elegant, the most powerful description of a blockchain platform up to that point.”

Lubin added that Ethereum, “enabled, essentially, billions of software engineers to not worry too much about what is going on the protocol layer and just build with tools similar to what they are used to using, when building web applications and mobile applications, and identify their own problem, and build their own solution.”

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ConsenSys Signs MoU With China’s ‘Smart City’ of Xiongan for Blockchain Consulting

China’s Xiongan New Area government has signed a Memorandum of Understanding (MoU) with ConsenSys to bring blockchain technology to the “smart city,” the South China Morning Post reported July 23.

ConsenSys, a blockchain software technology company focusing on Ethereum (ETH) development, has confirmed they will advise the Xiongan government on blockchain and software solutions in order to establish it as a “next generation smart city [and] leading blockchain innovation hub,”according to the (MoU) signed in Beijing.

In April 2017, Chinese president Xi Jinping announced plans to build Xiongan as a special economic zone spanning three counties. The South China Morning Post reports that the urban development project will “redirect” around 6.7 million people and could bring in 2.4 trillion yuan ($348 billion) over the next decade, citing a 2017 estimate by Morgan Stanley.

According to the South China Morning Post, Xiongan’s local government has previously partnered with Chinese tech firms Tencent, Ant Financial, and Qihoo 360 for bringing blockchain use into the city. The partnership with ConsenSys is the “first known case” when Xiongan has brought in a foreign company for urban technological development, the South China Morning Post reports.

According to Joseph Lubin, the founder of ConsenSys and the co-founder of Ethereum (ETH), the company is “excited” by the chance to work in China:

“As one of our first major projects in the People’s Republic of China, we are excited to help define the many ‘use cases’ that could benefit from the trust infrastructure enabled by ethereum technology.”

Recently at the Rise conference in Hong Kong, Lubin had expressed his belief that the world was moving towards a system of “‘global villages’ where you can have decentralized governance.”

Chinese president Xi Jinping has ambitious plans for technological development in China. During the nineteenth annual conference at the Chinese Academy of Sciences in May, the president had called blockchain a “new generation” technology that is part of the “technological revolution.” More recently, in mid-July, two Chinese standards organization announced they would lead a research group for promoting the international standardization for the Internet of Things (IoT) and blockchain tech.  

Also in July, the Chinese city of Nanjing launched an almost $1.5 billion investment fund for blockchain development.