Pay Attention and Break Conventional Rules

The conventional rules of Mineable Cryptocurrencies

This time, it was not Tim Ferris who broke conventional law to progress an artform. It was me. Crazy, right? To understand why, we have to rewind to 2009. The first Pure Mined Proof-of-Work Cryptocurrency is launched named ‘bitcoin’. As coins are mined, the mining both secures the network and distributes new coins to reward those miners. To incentivize them to act ‘good’ and cooperate and reach a consensus.

The conventional rules of Cryptocurrency security were broken thanks to Ethereum

The year is 2015. Ethereum network launches. This is an altcoin network that is mined like Bitcoin but it is able to bootstrap an extremely high and healthy amount of hashrate because it has a secret trick up its sleeve. Instead of only being used for simple monetary transfers, it is a turing complete computing engine on top of which microservices can be launched and run. These microservices, including new sub-coins, (called ERC20 tokens) can launch without having to secure themselves. The Ethereum network as a whole secures these ERC20 tokens and in return, all use of these ERC20 tokens is paid to the Ethereum miners which amasses to an enormous monstrous security budget. Essentially, all of these coins/projects/services built on top of Ethereum are pooling their security resources together and then all as secure as one another — extremely so. Today, more than 10x as much security budget is paid out to secure Ethereum versus Bitcoin chain. (source: cryptofees.info 2022).

The conventional rules of Mineable Cryptocurrencies were broken in 2018 thanks to 0xBitcoin

Ethereum flipped cryptocurrency security on its head, however those ERC20 tokens that launched in 2015–2017 were distributed in a way much more similar to stocks and not similar at all to bitcoin. So much so, that the scarcity of those ERC20 tokens depended only on the centralized teams that run them, and not on the smart contract of the ERC20 token itself.

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