92 episodes

Host Tom Shaughnessy's research conversations with the top names in crypto and blockchain

Chain Reaction Tom Shaughnessy

    • Investing

Host Tom Shaughnessy's research conversations with the top names in crypto and blockchain

    Multicoin's Kyle Samani: The Evolution Of the Web3 Stack

    Multicoin's Kyle Samani: The Evolution Of the Web3 Stack

    Host Tom Shaughnessy talks to Kyle Samani, Founder and Managing Partner of Multicoin Capital. Kyle discusses his predictions for the middle layer and full-stack development, attracting developers to the crypto space, how competition in the industry will develop, and a complete discussion on the Web3 Stack. 
    Key Points
    While there are a lot of opportunities higher up the stack, there is the most money in layer one because that’s what has been proven stable over time.
    The next few years will see an explosion of Web3 experimentation.
    In crypto, like with everything in technology, developments will happen very slowly, then suddenly very quickly.
    Quotes
    “When I think about opportunities for investing in the middle layer, they are generally less competitive as a function of market size, and not as many developers recognize that those markets exist.” –Kyle Samani
    “As these services continue to mature, we’re going to start to see people build world-class applications—we’re going to start to see new things come out over the next 12 months or so.” –Kyle Samani
    Episode Highlights
    Kyle recently published his 2019 update to the Web3 stack, which is about inverting the data model that powers the internet so that users own their own data.
    Kyle predicts that what we will increasingly see over the next few years will be more heterogeneity in investments, which will lead to more consolidation.
    Tech companies and teams that don’t pivot the right way will likely go down with their last dollar.
    Kyle thinks companies that are forced to run on a chain other than Ethereum or choose to explore that will choose chains that are very good at one specific thing.
    It’s difficult to attract new developers into crypto because the business models to make money are not yet understood.
    People are not good at having an historical sense of technology and understanding that once the basic idea for something arises, it takes many more years for the first iteration of the thing that will make those core ideas work.
    There are a lot of opportunities right now in the middle layers.
    There is the most money in layer ones.
    Developers typically want to know what will be possible in 12-24 months so they can build better applications upfront.
    There are structural issues with pushing complexity up the stack; the whole purpose of layer one is to abstract the complexity.
    Kyle agrees with Spencer Bogart of Blockchain Capital that most competition will eventually happen vertically, on one or a small number of chains.
    Kyle predicts that Polkadot will attack Ethereum this year, based on their recent behavior.
    Full-stack integrated approaches are great, but no one team can pull off all that complexity in any reasonable timeframe.
    Resources Mentioned: 
    Chain Reaction Twitter: https://twitter.com/chainpodcast
    Tom Shaughnessy Twitter: https://twitter.com/Shaughnessy119
    Multicoin Capital Website: https://multicoin.capital/
    Kyle Samani Twitter: https://twitter.com/KyleSamani
    Kyle Samani Linkedin: https://www.linkedin.com/in/kylesamani/
    Support The Show
    Visit Delta Exchange For A $10 Welcome Bonus!
    Check out eToro to Create Your Perfect Crypto Portfolio
    To sponsor this top crypto research podcast, email Tom@DelphiDigital.io 
    Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC, XTZ, STX, SNX, RUNE, sUSD and HNT. Lets Talk Bitcoin is a distribution partner for the Chain Reaction Podcast, and our current show features paid sponsorships which may be featured at the start, middle and/or the end of the episode. These sponsorships

    • 31 min
    Tradecraft's Jake Ryan: The Age of Autonomy

    Tradecraft's Jake Ryan: The Age of Autonomy

    Host Tom Shaughnessy talks to Jake Ryan, Founder and general partner of Tradecraft Capital and author of an upcoming book on crypto investing. Jake discusses his prediction for the Age of Autonomy, the challenges of predicting where crypto will go, and more.
    FYI: We're looking for long term show sponsors. To be considered as a sponsor this show, contact Tom@DelphiDigital.io
     Key Points:
    Society is at the end of the Age of Information and is headed into what Jake calls the Age of Autonomy.
    Competition drives adoption of new technologies.
    Automation and human intervention, and centralized and decentralized currencies, will likely always need to coexist.
    Quotes
    “As we see these technologies converge, we’re going to see orgs & businesses start to build autonomous operations, & businesses that don't have autonomous operations simply won’t be able to compete with those that do bc autonomy is the ultimate competitive advantage.” –Jake Ryan
    “Humans do a great job at envisioning the future and they do a really terrible time at timing it. It’s just too complex.” –Jake Ryan
    Episode Highlights:
    Jake’s book on crypto investing is set to come out in the first quarter of 2021.
    He moved from app development into angel investing about 5 years ago, which is what led him to crypto.
    Jake calls this the “age of autonomy,” based on theories of short-wave and long-wave economic cycles driven by technological revolutions.
    By autonomy, Jake is referring to automation, artificial intelligence, the internet of things, robotics, and now crypto.
    Jake sees us as being in the mature phase of the Age of Information.
    Jake urges us not to view these changes with judgment, as right or wrong, but simply as fact.
    He sees a future intersection of these various technologies, with blockchain as the glue between them.
    Automation will not drive out humans if we make more complex and decentralized governance systems, but overall, over decades, human intervention will become less and less required.
    The economy needs a currency that will ride the economy through inflation and deflation, and a currency that stores value well over time, and those appear to be mutually exclusive.
    Jake believes we won’t go to full decentralization but that we’ll always have both centralized and decentralized currencies.
    Resources Mentioned: 
    Crypto’s Role in the Age of Autonomy - https://hackernoon.com/cryptos-role-in-the-age-of-autonomization-2bf414ceb5d2
    Chain Reaction Twitter: https://twitter.com/chainpodcast
    Tom Shaughnessy Twitter: https://twitter.com/Shaughnessy119
    Tradecraft Capital website: https://www.tradecraft.capital/ 
    Jake Ryan’s Twitter: https://twitter.com/TradecraftJake
    Book recommendation: Technological Revolutions and Financial Capital by Carlota Perez
    Technology conference where Jake is a keynote speaker: www.autonomy2040.org
    Jake’s Writing, Medium: @TradecraftJake
    Autonomy 2040 Summit – https://www.autonomy2040.org/
     

    Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC, XTZ, STX, SNX, RUNE, sUSD and HNT. Lets Talk Bitcoin is a distribution partner for the Chain Reaction Podcast, and our current show features paid sponsorships which may be featured at the start, middle and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product or service. 
     

    • 29 min
    Blockchain Capital’s Spencer Bogart: A Bold Outlook for 2020

    Blockchain Capital’s Spencer Bogart: A Bold Outlook for 2020

    Host Tom Shaughnessy talks to Spencer Bogart, general partner with Blockchain Capital. Spencer discusses the current state of crypto, his predictions for its future, and more. 
    FYI: We're looking for long term show sponsors. To be considered as a sponsor this show, contact Tom@DelphiDigital.io
    Key Points:
    Crypto is becoming increasingly relevant to global macroeconomics.
    It’s difficult to pinpoint exactly where in the crypto development arc we are, so some believe it’s growing more slowly than expected and others believe it’s moving faster.
    There is an overall shift in crypto from horizontal competition to vertical construction.
     Episode Highlights
    Blockchain Capital has over 300 million assets and 80 portfolio companies.
    Spencer got into crypto after buying some Bitcoin, which led to him getting more and more interested and eventually writing some research pieces on the crypto space.
    Bitcoin is just starting to become relevant on a macroeconomic scale.
    Political unrest globally could be a driver towards crypto to avoid government regulation and interference.
    Technological developments and the best tech are not what establish standards.
    Spencer predicts that rather than a new protocol launching and becoming number one, more success and better standards will be established by people building on top of existing protocols.
    People will build for the chains that have the most end-users, and those options are Bitcoin and Ethereum.
    Now that it has become easier to build up the stack, Spencer predicts we will see more innovative and creative solutions.
    Tom thinks given new involvement in crypto from China, Facebook, and other places, that we’re maybe moving slower than expected, but Spencer disagrees.
    Spencer points out that asset value is not the only way to assess a crypto’s success, but that you can also look at the transaction value.
    Spencer suggests when pitching to a VC, don’t overrepresent what you’re doing.
    Be cautious about assuming that what you see online, on crypto Twitter for example, is representative of everything that’s going on in the industry; some of the most knowledgeable and impactful people aren’t on crypto Twitter because they’re too busy building.
    Spencer’s long-term view of the industry is that there’s an overall shift from horizontal competition to vertical construction.
    Bitcoin probably does not need vertical construction to grow because it is focused on a specific market and specific use cases.
     Quotes
    “Keep in mind that any kind of venture investor that you’re going to go and talk to, they just see a lot of opportunities, so they’re looking for reasons—as much as they’re looking for reasons to invest in something, they’re also looking for reasons not to invest.” –Spencer Bogart
     
    “It’s only because of fee pressure that we started to get innovations on things like lightning. So the other option would have been to increase the block size to try to keep transaction fees low, but the reality is there’s unbounded demand for cheap block space.” –Spencer Bogart
     
    “We’re seeing a shakeout in terms of trying to establish standards. So I think these standards are trying to basically create the foundation for programmable assets. And standards are almost never set by best tech.” –Spencer Bogart 
     
    Support The Show
    Visit Delta Exchange For A $10 Welcome Bonus!
    Check out eToro to Create Your Perfect Crypto Portfolio
    To sponsor this top crypto research podcast, email Tom@DelphiDigital.io 
    Resources
    Chain Reaction Twitter: https://twitter.com/chainpodcast
    Tom Shaughnessy Twitter: https://twitter.com/Shaughnessy119
    Blockchain Capital website: https://blockchain.capital/
    Blockchain Capital Facebook: https://www.facebook.com/blockchaincapital/
    Blockchain Capital Twitter: https://twitter.com/blockchaincap
    Blockchain Capital’s 2019 Review: https://drive.goog

    • 45 min
    Yan Liberman, Phil Bonello and David Puell: Tokeneconomics and Valuation

    Yan Liberman, Phil Bonello and David Puell: Tokeneconomics and Valuation

    Host Tom Shaughnessy leads a roundtable discussion with Yan Liberman (co-founder of Delphi Digital), Phil Bonello (former Head of Research at Ikigai), and David Puell (Head of Research at Adaptive Capital). They discuss the difficulties of crypto valuation, productive vs. unproductive assets, the differences between some projects, and more.
    Key Points
    It is very difficult to establish any intrinsic valuation of cryptocurrencies.
    Many strategies for short-term growth do not lead to long-term stability or sustainability.
    Tracking cryptocurrency growth and valuation has gotten more difficult as more transactions move off-chain.
    Episode Highlights
    Yan feels the token economy is the high-level understanding of the token structure, how the token accrues value, and how the token interacts within the ecosystem.
    Phil categorizes assets as either productive or unproductive.
    David thinks about the token economy in a way that includes game theory.
    Exchange tokens need to accrue value while also being a usable asset.
    The industry still relies heavily on operating in relation to the cost of Bitcoin, so it’s almost impossible to establish the fundamental value of anything.
    The “burn model” is not effective to extrapolate an intrinsic value.
    The “velocity problem” is that the more use of a currency there is, the less value it holds in the long term. Bitcoin avoids it by having a scarcity model.
    Maker tokens work as an incentive, but it requires considerable growth to outpace the burn rate.
    Now there is a token that you can use as collateral for synthetic assets, as a way to bootstrap your way to a sustainable value.
    It isn’t possible to make future projections without enough historical data of crypto value.
    Diversification and differentiation are big problems in crypto.
    At Ikigai, Phil didn’t avoid trading assets with low valuation but wanted to approach all trades with a full understanding of the function and model of the assets.
    Most agree that Bitcoin halvening is a bullish move.
    For Yan, it’s easy to say that a number of projects shouldn’t be in the top ten, but harder to say what should be in the top ten that isn’t.
    Resources Mentioned
    Chain Reaction Twitter: https://twitter.com/chainpodcast
    Tom Shaughnessy Twitter: https://twitter.com/Shaughnessy119
    Yan Liberman Twitter: https://twitter.com/YanLiberman
    Phil Bonello Twitter: https://twitter.com/philjbonello?lang=en
    Phil Bonello’s blog: https://philjbonello.substack.com/
    Adaptive Capital Website: https://adaptivecapital.co/
    David Puell Twitter: https://twitter.com/kenoshaking?lang=en
    Support The Show
    Visit Delta Exchange For A $10 Welcome Bonus!
    $50 Off A Helium Hotspot
    Check out eToro to Create Your Perfect Crypto Portfolio
    To sponsor this top crypto research podcast, email Tom@DelphiDigital.io 
    Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC, XTZ, STX, SNX, RUNE, sUSD and HNT. Lets Talk Bitcoin is a distribution partner for the Chain Reaction Podcast, and our current show features paid sponsorships which may be featured at the start, middle and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product or service.
     




    Music Attribution:
    Cosmos by From The Dust | https://soundcloud.com/ftdmusicMusic promoted by https://www.free-stock-music.comCreative Commons Attribution 3.0 Unported Licensehttps://creativecommons.org/licenses/by/3.0/deed.en_US 




     

    • 1 hr 8 min
    Decred's Akin Sawyerr: Governance Reimagined

    Decred's Akin Sawyerr: Governance Reimagined

    Host Tom Shaughnessy talks to Akin Sawyerr a Strategy and Governance Lead for Decred. Akin discusses getting involved with the Decred platform, governance, and community-building.
    Key Points
    Decred is unique for its transparent, token-holder led governance.
    A community mindset of searching for the best solution to a problem increases transparency and decreases contention.
    Decred wants to build incrementally and develop iteratively in order to maintain a strong community and culture.
    Episode Highlights
    Africa is the most expensive area to move money. The free, open-source tech isn’t the issue, but the government network.
    Anyone in Decred’s network can propose, vote on, and debate ideas and feedback.
    There are pitfalls to token-holder governance, which is why Bitcoin doesn’t have it, but Akin sees it as giving the people with economic stake in the network and a stake in governance.
    Decred is working towards being a DAO, and using their cryptocurrency Politeia and technology built for Politeia in new implementations and new use cases.
    Decred is one of the only cryptocurrencies that hasn’t had a major PR scandal or problem arise.
    Decred’s biggest goals looking forward are to launch lightning support and a split-ticketing system.
    Akin believes Decred isn’t in the top 10 coins because it requires a bit of a learning and participation curve to get involved.
    Decred has the highest voter turnout for governance issues of all cryptos.
    Decred has a consistent philosophy about their protocols, down to having a constitution
    Resources Mentioned
    Delphi Digital's Research
    Chain Reaction Twitter
    Tom Shaughnessy Twitter
    Decred website
    Decred chat
    Decred Twitter
    Akin Sawyerr Twitter
    Previous Episodes
    Decred’s Co-Founder Jake Yocom-Piatt: Governance-First Crypto Aims to Challenge Bitcoin
    Noah Pierau on Blockchain Governance: Decred, Bitcoin, Dash, Ethereum
    Support The Show:
    $50 Off A Helium Hotspot
    Visit Delta Exchange For A $10 Welcome Bonus!
    Check out eToro to Create Your Perfect Crypto Portfolio
    Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC, XTZ, STX, SNX, RUNE, sUSD and HNT. Lets Talk Bitcoin is a distribution partner for the Chain Reaction Podcast, and our current show features paid sponsorships which may be featured at the start, middle and/or the end of the episode. These sponsorships are for informational purposes only and are not a solicitation to use any product or service. 
     




    Music Attribution:
    Cosmos by From The Dust | https://soundcloud.com/ftdmusicMusic promoted by https://www.free-stock-music.comCreative Commons Attribution 3.0 Unported Licensehttps://creativecommons.org/licenses/by/3.0/deed.en_US 




     

    • 35 min
    IDEX's Alex Wearn: Scaling A Decentralized Exchange Through Optimized Optimistic Rollups

    IDEX's Alex Wearn: Scaling A Decentralized Exchange Through Optimized Optimistic Rollups

    Host Tom Shaughnessy of Delphi Digital is joined by Alex Wearn, the co-founder and CEO of IDEX, a decentralized exchange built on Ethereum, to discuss the next version of the exchange and using optimized optimistic rollups to scale the exchange.
    Key Points
    IDEX tries to combine the design of a centralized exchange and the security of a decentralized exchange.
    The “optimized optimistic rollup” takes the most scalable aspects of different transaction settlement methods.
    There is a huge potential to bring other applications into the IDEX network to use the O2 rollup design.
    Topics Discussed
    IDEX 2.0 - UI improvements (faster and more performant) and a more efficient settlement process with rollups instead of settling each transaction one by one (IDEX users paid $5M in gas fees in 2018).
    IDEX differs from competitors (Uniswap etc) by having a high performant order book. An on-chain order book is great for integrations, but hard to use when replicating complex trading strategies. 
    In competing with 0x, IDEX disagrees that trying to have a high performant order book may be too difficult if its decentralized.
    How the different types of rollups work to drive scale for Ethereum, and the differences from normal rollups to IDEX's version called optimized optimistic rollups.
    Optimized Optimistic rollups can drive much higher throughput vs using traditional rollups. 
    How IDEX grew to been the most successful DEX and dapp to date, with over 300k users executing five million trades worth over $2 billion.
    The use of optimized optimistic rollups beyond IDEX, such as in gaming.
    Alex's thoughts on the battle between centralized exchanges (Coinbase, Binance, Bitmex, Delta) vs Decentralized exchanges (IDEX, Uniswap, 0x, etc).
    Episode Highlights:
    IDEX aims to build a highly performant, yet safe and secure decentralized exchange; they want to create a centralized experience on a decentralized platform.
    Improvements in IDEX 2.0 include overall performance improvements from UX and UI developments over the past few years, and back-end improvements to how transactions are settled.
    The Merkle root takes data off-chain, hashes it together into a single data point, which is then submitted on-chain.
    IDEX is looking at different design proposals including Zero-Knowledge Proofs and the Optimistic rollup.
    They could not run IDEX on Optimistic rollups because their transactions were too complex to see a substantial increase in their transaction throughput.
    IDEX’s data is only ever published to an off-chain ledger.
    They have validators who work to verify that the transactions published off-chain hash up to the same Merkle root that is published on-chain.
    O2 rollups are scalable to eventually be available to other applications, but IDEX doesn’t see this as a way to monetize but as a way to give back to the community.
    Alex believes customers care more about application performance and fund security than they do about anonymity.
    The O2 rollup demo is currently live and can be tested, and they aim to make it fully live during Q1 of 2020.
    To help support the show, please hit the subscribe button on iTunes so we can keep bringing you episodes like these
    Follow The Guests
    Follow Alex on Twitter
    Follow Tom on Twitter 
    Resources:
    Previous Episode 
    IDEX 2.0
    IDEX's Post on Optimized Optimistic Rollups
    Delphi Digital's Research
    Support The Show:
    $50 Off A Helium Hotspot
    Visit Delta Exchange For A $10 Welcome Bonus!
    Check out eToro to Create Your Perfect Crypto Portfolio
    Disclosures: This podcast is strictly informational and educational and is not investment advice or a solicitation to buy or sell any tokens or securities or to make any financial decisions. Do not trade or invest in any project, tokens, or securities based upon this podcast episode. The host may personally own tokens that are mentioned on the podcast. Tom Shaughnessy owns tokens in ETH, BTC,

    • 28 min

Top Podcasts In Investing

Listeners Also Subscribed To