25% APY Offerings From Stellar & Cardano Foundation – Yes, You Read Correctly – Stellar; Ripple Announces Applications Are Live for The 2021 XRP Distribution Program

All about the Benjamins


February 11, 2021

Alternate text
Exploring the transformation of value in the digital age

Sponsored By:

Alternate text

By Michael J. Casey

Chief Content Officer

Opportunities abound in XRP, Stellar and Cardano

Welcome to Money Reimagined.

A snowy week has left New Yorkers chilly. But XRP, XLM & ADA investors must be feeling cozy – despite Ripple’s SEC woes. Prices have risen sharply as of the time of writing. Promising further growth, by breaking significant technical thresholds, all 3 alt-coins have come out with big news in regards to redistributing and staking recently.

Although not outpacing their big brothers, Bitcoin and Ethereum, Ripple and the Stellar Foundation have started offering redistribution/staking programs with guaranteed returns, currently outpacing all DeFi alternatives, offering close to 30% APY and additional bonuses for whales and early adopters. Meanwhile Cardano’s new Official Staking Pool has been garnering the attention of the crypto space.

Qualifying XRP wallets can participate in a new initiative launched by Ripple. The news has emerged as top trending, as we keep getting requests for more information. A 5.12 Billion XRP fund (Over 2 billion USD$) and up to 15% Return on Balance might have something to do with it. Learn about requirements and the latest official news here.

Not to be left behind, Stellar too, has launched a program aimed at promoting hodling. The organization has decided to guarantee a 25%+ minimum Return on Current Balance via its initiative – The Community Staking Program.

The Cardano Foundation revealed its bid in the pool running ecosystem – The AlphaPool. This officially maintained pool promises up to 24% ROI and many other bonuses and incentive programs for early adopters. The team at the Foundation explained the details behind participating in the pool, and the reasoning behind launching it, in this blog post.

Alternate text

Enterprise Blockchain Isn’t Dead. It Just Needs Crypto

Alternate text
Illustration by Moe Na/CoinDesk

The headline for CoinDesk reporter Ian Allison’s big story this week highlighted a major failure for the most influential enterprise IT company in history: “IBM Blockchain Is a Shell of Its Former Self After Revenue Misses, Job Cuts.”

But there’s a bigger issue here than Big Blue’s struggle to turn blockchain advisory services into an engine for cloud service revenues. It’s that this story will be viewed by Bitcoin maximalists and crypto skeptics alike as proof that “enterprise blockchain” is dead. There are no viable business applications for blockchain technology, these people will tell you, beyond supporting native cryptocurrencies for payments or as a store of value.

I think that’s patently wrong. There’s still plenty of innovation going on in blockchain-founded and blockchain-inspired multi-party computing solutions. Real progress is being made to overcome some of the sticking points that initially slowed the technology’s real-world deployment – in trusted computing, in internet-of-things integrations and in digital identities.

Meanwhile, in supply-chain applications, in public health and in credentialing systems, blockchain technologies are already operating in the real world, though they are very much in the background as a low-key element inside otherwise multifaceted solutions. Worldwide, blockchain has been incorporated into a variety of active information management systems – for example, to trace diamonds and other products in mining supply chains, for private key management in digital identity systems and to enable the right mix of public data and privacy in COVID-19 contact tracing apps. Many of those use IBM technology. That there’s no hyperbolic “blockchain fixes this” fanfare attached to these backend implementations doesn’t make them less relevant.

The problem of “corporate adoption” revolves more around how businesses approach the technology, a flawed mindset that IBM has (perhaps unintentionally) promoted. It’s not the technology’s fault but one of a deep misunderstanding within C-suites of what it offers to their business environment.

The road to success first requires recognition that blockchain technology is not an internal tool but an external one. Its main purpose is to allow non-trusting entities within a particular business ecosystem to share information that’s valuable to all participants without relying on a middleman.

That structure means the blockchain-based data-sharing system must be equally supported by a firm’s competitors and business partners. It requires boldness: a willingness to cede control and to bear the cost of disruption that blockchain-based approaches will impose. Only then can it be used to unlock the rich, systemwide data needed to achieve efficiency around resource management and forge sustainable economic systems that serve both business and society.

‘We Technology’

Big-name consultancies selling “blockchain-as-a-service” (BAAS) have fostered the misguided idea that “blockchain” is akin to a proprietary ERP software product that, once plugged into the IT system, will start boosting efficiency and increasing the bottom line.

But this is not plug-and-play technology. In fact, it’s hard stuff.

To make a blockchain solution work across a supply chain or an electricity grid (for example) requires each player to contribute to the greater good, in code development, in computing resources, in sharing data. To quote a cheesy line I used in presentations during my own time consulting in a pre-CoinDesk life, “blockchain is a we technology, not a me technology.” It only works when multiple, competing, non-trusting entities agree to use it and share in the gains and headaches.

By extension, a working blockchain involves sharing resources with competitors, including with startups developing disruptive innovations that challenge the incumbent’s core business. It requires an open, collaborative, come-what-may approach to participation that’s anathema to business models built around trade secrets and protecting competitive advantages. For many businessmen, eager to protect people’s bonuses and jobs, it seems like a non-starter.

Yet, history tells us that doing nothing in the face of disruption can have even greater cost, including the collapse of entire firms. The reality is that first-mover companies bold enough to embrace disruptive technologies will gain a competitive advantage over those that can’t take the leap. This innovator’s dilemma is front-and-center for would-be blockchain participants and it’s not properly acknowledged.

To be sure, enterprise blockchain advocates typically understand some aspect of the “me” versus “we” challenge. That’s why there was a rush to form industry blockchain consortia between 2016 and 2018. But as Allison also reported early on in the formation of the TradeLens consortium founded by shipping giant Maersk, those groups are hard to manage precisely because competitors, as well as business partners, will mistrust the motives of the founding institution.

Also, partly because of companies’ unwillingness to cede control, and partly because of regulatory and other constraints, these consortia almost always default to private blockchains with fixed membership. They create walled-garden, closed-loop environments that inevitably innovate less well than open-source communities where ideas from anyone are welcomed and shared.

Embracing the Radicals

The hard truth is that for blockchain business consortia to succeed they must accept outsiders, with all the disruptive threats they pose. They must embrace the notion of open-access permissionless innovation that’s at the heart of public blockchain-based crypto communities.

There’s even a role for Big Blue in all this. Leave IBM’s consulting division and you find that open-minded approaches to blockchain still thrive. In those cases, the focus is about what can be built and developed on top of this open distributed ledger architecture, rather than on selling cloud services.

In IBM research, for example, Nitin Gaur, Director of the IBM WW Digital Assets Lab, is doing groundbreaking research into how banks and traditional financial participants might engage with the dynamic, open-source world of decentralized finance (DeFi), perhaps the epitome of freewheeling, public blockchain innovation. (Perhaps only EY blockchain lead Paul Brody is on par in the consulting world for embracing DeFi’s potential.)

Meanwhile, the health sciences team has developed an IBM Digital Health Pass, which provides an innovative, privacy-preserving solution to managing shared COVID-19 health records. You wouldn’t know from the app that it’s powered by a blockchain, but it is.

While its sales pitch on blockchain may not have reflected it, IBM’s history is one of (eventually) shifting with the times and addressing disruption. The reason it has survived, despite massive waste over the years, is that, when push comes to shove, it embraces change. You see it in Big Blue’s journey from mainframe computers to PCs to software development to consultant services.

If it can get away from offering blockchain as some magical solution and instead incorporate it as a back-end element to useful new applications, IBM can help drive real change in business practices around this technology.

Bitcoin Slightly Less Dominant Vs Ethereum

Ethereum’s ether has been on a tear this past week, hitting a new all-time high of $1,740 at the time of writing. Bitcoin also had a good week, just not as crazy good as ether. So it made sense to look at how the metric of “bitcoin dominance” is playing out in the crypto universe, particularly as it compares to the boom period for ether of January 2018.

Alternate text
Shuai Hao/CoinDesk

In this case, CoinDesk’s Shuai Hao used the market cap measurements at the end of January for bitcoin, ether, and for the other 18 digital assets listed in the CoinDesk 20, as the foundation. Then he ran the numbers back to 2017. Sure enough, this is the second-highest proportion of total crypto market cap that ether represents after 2018.

Sustainable? Who knows? For answers, watch how DeFi and the new Ethereum 2.0 project play out.


Alternate text
Experience DeFi: Deposit, Earn & Borrow With Aave

Aave (fun fact: the name is taken from the Finnish word for “ghost”) is a decentralized, open-source and non-custodial liquidity protocol where you can earn interest on crypto deposits and borrow assets. Deposit your preferred asset and you’ll automatically start earning interest every second, based on the market supply and borrowing demand. Users can also swap any of their deposited assets in order to get the best yields on the market! Aave Protocol features access to innovative DeFi building blocks including flash loans and credit delegation as the first uncollateralized loan options in DeFi.

Check out Aave today: https://aave.com/

The Conversation: The Fees Are Too Damn High

Alternate text
Illustration by Moe Na/CoinDesk

One reason it was a big week for Ethereum was because it was another big week for decentralized finance (DeFi) applications built on top of it. The amount of total locked value in DeFi has continued to reach new all-time highs on a weekly basis, but its new record – at around $33.45 billion as of Friday morning – was impressive for the speed with which it jumped from $27.31 billion on Jan. 29.

Of course, with growth comes problems, especially because Ethereum hasn’t yet migrated to what is supposed to be a more scalable Ethereum 2.0 blockchain. As such, the congestion of transaction orders pushed up fees paid to miners for clearing transactions. As of early Thursday morning, so-called Ethereum “gas” fees were at record highs.

This prompted Maya Zehavi to point out both the challenges and the opportunities for DeFi innovators, highlighting the gas fee sticker shock and the prospect for layer 2 DeFi solutions that don’t require costly on-chain transaction processing, which would in theory lower transaction costs.

Alternate text

Meanwhile, someone with the Twitter handle @youngtilopa compared Google searches for “DeFi” and one equity stock that’s been in the news recently.

So maybe a sober view is needed. DeFi still has a long road to travel. Whether layer 2 will help it scale and open opportunities for lower-cost transactions remains to be seen.

Alternate text
The price of ether has reached an all-time high less than two months since the Ethereum protocol’s historic upgrade. Research analyst Christine Kim and tech reporter Will Foxley break down Ethereum 2.0 and its sweeping impacts on crypto markets, weekly.

Valid Points features original insights on what lies ahead for industry stakeholders and investors. Subscribe to the Valid Points newsletter.

Relevant Reads: Divergent Global Regulation

Approaches to cryptocurrency regulation and development continue to vary among the governments of the world. The one consistency is a wariness of crypto; the big difference is how proactively each government is itself acting to innovate with the technology.

  • Early in the week, we got news India would ban private cryptocurrencies under proposed legislation, fostering a firestorm of criticism for what many said would be the death knell for fintech innovation in the world’s second most populous nation. CoinDesk’s Omkar Godbole reports.
  • South Africa has a relatively vibrant crypto-using community. Now, as Tanzeel Akhtar reports, the South African Revenue Services is moving to make sure that growing user base doesn’t get away with untaxed capital gains.
  • Meanwhile, China has been playing the long game. CoinDesk contributor Michael Kimani argues China’s heavy investment and incentives to build out Africa’s connectivity with Chinese mobile technology has positioned the country well to deploy a Chinese digital currency on the continent in a bid to boost its influence.

ATTENTION: Scammers have been sending fraudulent emails with links to sites disguised to look like coindesk.com. If you are in doubt about a link, type https://www.coindesk.com directly into your browser; do not copy and paste. Remember, if something seems too good to be true, it probably is.

Money Reimagined

A newsletter from CoinDesk

See Previous Editions

Copyright © 2021 CoinDesk, All rights reserved.

250 Park Avenue South New York, NY 10003, USA

You can manage your preferences here or unsubscribe from all CoinDesk email.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s