Hello friends, let me introduce episode 2 of this blog that I started last week to discuss the scope of the new coordination tool that humans have found in this stage of civilization, known as tokenomics.
The scope of the tokenization of the economy is so limitless and ignored, that it makes me think of those videos in which they show the Earth as a blue dot in a vast and vast empty universe whose limits are far beyond human comprehension.
In particular, I am interested in the fundamentals of projects that in my opinion can revolutionize the world and change it. Although I really enjoy technical analysis, it only represents a snapshot of the short term for me, while fundamental analysis gives me a long-term view that reassures me. And with so many currencies in the ecosystem to analyze, a little peace of mind is very necessary.
To understand fundamental analysis, it is necessary to understand in depth how a currency works and what is actually a cryptocurrency, since we are used to thinking of a currency as a metallic object, and in the crypto ecosystem, a currency is a very different concept.
Satoshi Nakamoto made it very clear in his White Paper: a currency is a chain of transactions stored on a chain of blocks. Nobody actually owns cryptocurrencies, but what they have is a private key that allows them to generate public keys that allow them to demonstrate that they own a chain of transactions that give them ownership over that chain of transactions that we call cryptocurrency.
I love DeFi and his prodigal little daughter, Yield Farming. I find them very attractive and I have some position in some of their jewelry. However, I prefer to analyze the fundamentals of a project and a token to decide if they serve me to put together a strategy, a future scenario and a solid portfolio of cryptocurrencies that is aligned with my anarchist lifestyle, based on the utopia of wanting to change this corporate and unequal world. It's a matter of style. DeFi's giddiness upsets me a bit, and I do prefer to sit and think with a cigar and a whisky.
That is why I decided to analyze and share with you two tokens per week, in order to discuss their long-term value proposition and its possible influence on our lives and on our relationship with value, money and economics in general.
Mine is very honest. I have no sponsor and I only act intuitively, and afterwards, I dive into the project using my best critical thinking. I'm interested in projects that have the potential to change the world and eliminate centralized systems. I may be very wrong, but what I write is exactly what I think.
Also, nothing I say here means financial advice at all (NFA), and of course, everyone should do their own research (DYOR).
We must not lose sight of the fact that all coins are tokens, but not all tokens are coins, which is perfectly explained in this article by my friend The Kragle.
The main parameters that I want to analyze in each token that I choose, although not exclusive, are:
1) Founder and management team
2) uniqueness of the proposal
3) current price and current and future supply
In episode 1 I referred REALT and ENJIN. Today I chose IOTA and CLA.
But before talking about these tokens, I would have to talk a bit about DAG technology.
When we talk about cryptocurrencies, we tend to think of blockchain, but not all currencies depend on blockchain.
The term Distributed Ledger Technology (DLT) doesn't just refer to blockchains. It also includes DAG technology. Both DAG and blockchain record transactions on a distributed ledger, but they do so in very different ways.
DAG stands for Directed Acyclic Graph. If you think of a blockchain as some kind of chain linked with links, then DAG would be more like a tree, with several branches that link one transaction to another, or better yet, like the chaotic patterns of forest mold as it searches for food among the stones.
DAG technology, unlike blockchain, has neither miners nor blocks. Users have to confirm their own transactions through a process that confirms previous transactions with new transactions.
You can help others by approving their transactions and others can help you by approving your transactions. The idea is that, by approving a transaction, you indirectly approve all the previous ones.
One of the obvious benefits of DAG technology is that there are no blocks. So unlike cryptocurrencies on blockchains like Bitcoin or Ethereum, there is no block size issue. This means that scaling issues, that prove to be roadblocks for major currencies, don't exist with DAG.
As there are no miners in DAG, there is no possibility of mining pools forming that monopolize block rewards, and there is low energy consumption. China, for example, has already amassed around 73% of Bitcoin's hash rate.
However, if blockchain technology is in its infancy, DAG technology is still in the pregnancy stage in the mother's womb.
Also, since DAG works best when there is a high volume of transactions, a reduction in the volume of transactions can make it vulnerable to attack. This means that it is not as secure as blockchain technology. So far, the DAG cannot sustain decentralization in its purest form.
There are far fewer developers and cryptocurrencies working with DAG. As both technologies mature, we will see if one prevails over the other.
With that said, let's go to today's two tokens.
IOTA is not new to the crypto-sphere. It has been around since 2015. But I think it is quite undervalued and it catches my attention.
MIOTA, the IOTA coin, is pre-mined and transaction consensus occurs differently than a known blockchain, using the DAG technology I described above. The IOTA developers proposed a data structure known as the Tangle.
The IOTA cryptocurrency and its platform have been developed to support and encourage the interconnectivity of IOT devices.
The Internet of Things (IoT) describes the network of physical objects (things) that carry integrated sensors, software and other technologies in order to connect and exchange data with other devices and systems over the Internet. These devices range from everyday household items to sophisticated industrial tools. With more than 7 billion IoT devices connected today, experts predict this number will rise to 10 billion in 2020 and 22 billion in 2025.
IOTA restructured the distributed ledger technology, allowing the secure exchange of value and data, and without paying fees.
IOTA created the “Tangle”, a mathematical model that represents an innovative type of Distributed Ledger Technology (DLT) specially designed for IOT (Internet of Things). It is an open source protocol that facilitates M2M, machine to machine interaction, including the secure transfer of data and instant micro-payments without fee.
The IOTA foundation continues to work to facilitate the operation of data infrastructure systems and new business models across all industries, being already present in the automotive, energy and other industries, and directing us to the concept of Smart Cities and care for the environment.
I show two use cases that allow me to reason that we are dealing with a large undervalued gem.
Use case 1
On April 18, 2020 ElaadNL put into operation the first car charging station in the world, in the Netherlands, where you can charge and pay with IOTA in an M2M way, still in the test stage. There is no office and no communication protocol is needed, the transaction is done automatically using a charge card or a subscription. The station works completely autonomously. Meter values are stored every 15 minutes in the Tangle, which ensures reliable and irrefutable administration. We are on our way to a fully digitized world.
USE case 2
The Taipei city government will test IOT sensors on the first three floors of the city hall that will measure the degree of filling of waste containers in real time. These IOT sensors are going to use the Tangle to store the sensor data in a tamper-proof ledger. The provider company will charge IOTA for its services.
The IOTA board of directors is made up of:
With the expansion of the internet, there will be an increasing need to share resources to feed Big Data. IOTA aims to be the backbone that allows companies to create new business models, with the exchange of data from IOT devices and the corresponding micro-payments. The IOTA foundation works on the development of new hardware, with the aim of creating a microprocessor for the Tangle.
My impression is that the world still didn't quite understand what IOT means. What will happen to IOTA when the world understands IOT?
CANDELA COIN and its CLA coin are newer.
It is a very ambitious project and still very little known, because its successful introduction would probably mean a great destabilization of the global interconnected energy system.
These days the CLA pre-sale ends and the ICO formally begins.
According to the company, the price of CLA will be $ 0.0317 during the ICO.
Here you can see an explanatory video of the Candela Coin concept.
The company's vision is to create truly decentralized solar energy around the world, generated by people from their homes, neither generated by hydroelectric or nuclear plants, nor distributed through intermediaries.
For this, they created IOT hardware and software that enables simple peer-to-peer power transfer. Using blockchain technology, solar panel owners are enabled to sell the energy they produce to other users, earning money and preserving the planet. People anywhere on the planet will be able to transfer the energy they generated to their neighbors using CLA as a medium of exchange. Candela could mean the democratization of energy.
The project allows creating an energy market for prosumers, commercial producers and consumers in communities anywhere on the planet, so that all members of the community can trade energy according to their needs.
As I said at the beginning, if this is successful, the monopolies and large electricity producing plants, which control world energy prices and supply at will, will gradually disappear, now passing the power of energy directly to the people of a community, that, without a doubt, they will manage it more efficiently through the spontaneous coordination that we, anarchists, always mention.
The key to this is the CLA coin. Today, if someone wants to sell their surplus energy generated by solar panels to the interconnected system of large plants, they receive pennies in exchange. With CLA you would have a much more real and decentralized market. Each community would decide the price to trade energy.
The only thing a person needs to operate on the Candela network is a smartphone and one or more IOT devices at home. Power transmission is done with a tap on the phone.
The project is not only about technology, but especially about the way technology is used by ordinary people. The connection between their smartphones and household appliances in their homes is what represents a gamechanger in various cultural aspects.
The fact of producing energy and selling it to whomever one decides without asking anyone's permission and at the price set in CLA in each community, constitutes a turning point in the relationship between human beings, nature, the environment and the coordination between neighbors of a community who are ultimately the ones who set the rules for the distribution of energy. It allows you to put a human face on electrical power distribution, and not the name of a corporation.
Can you imagine the paradigm shift that this could mean for the social organization of future generations?
Here are the main members of Candela Coin's founding and management team.
Avi Shane Verdugo - CEO
I think that Candela Coin CLA developed a very innovative and global proposal. Now it is the market's turn, but I prepared myself with some tokens.
Thank you for reading!
Until the next episode.
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