Jita newsletter Q2 2020
A challenging time for many
This is Jita quarterly newsletter Q2 2020.
We expected volatility this year but nothing like this.
As central banks and governments take unprecedented actions, everybody is readjusting their plans.
While strong fintech teams continue to raise significant funding at various stages, reduced human interactions and high uncertainty prevent a full restart of economic activity. We expect uncertainty to reduce in the coming months.
The decentralised finance lending platform Compound has been making the headlines by offering high interest rates as well as distributing its governance token. More activity leads naturally to more security attacks, some successful. Besides security, it remains to be seen if the model can scale financially. Token economics has often been a grey area and it is great to see some models emerge. DeFi could evolve into what Eddy Travia calls coded income.
There is a lot of controversy around the deployment of blockchain or DLT systems in enterprise environments. We share our experience on such projects and present it in a longer economic and technology perspective in this article Distributed Ledger Technology vs Traditional databases published in partnership with Aaro Capital. At the same time we observe more and more government blockchain projects. Governments and international organisations (China, EU, UN) are well positioned to deploy and encourage the use of such platforms. The outcome of government blockchain projects, including but not limited to CBDC, could be interesting.
Did you hear about Ethereum #SupplyGate? It turns out it is surprisingly complex to count how many Ether were issued, at what time and to whom. This is a consequence of some design choices made when Ethereum was created. We made our own investigation and shared it here.
Finally we recently launched our new website at jitadigital.com and we would love to receive your feedback! Our new site will enable us to publish more content more often. Don’t miss our article on cybersecurity during lockdown or our intro article explaining everything you need to know about DLT and blockchain addresses.
Thank you for reading and we wish you a good summer!