The invention of Bitcoin in 2009 by Satoshi Nakamoto is still underrated even by crypto enthusiasts in its impact on society. Its most obvious consequence is a fundamental change in the nature of money for the next hundred years. But less apparent is the framework it set up for open and transparent access into an arena that had been heretofore closed.
People can now tinker with money itself. They can add pieces and parts, shave corners, twist and turn, layer slabs on top, drill holes, and sand down the edges to make something completely new and present the creations to the world. The last few years have seen a Cambrian explosion in applications and products that use financial cryptography as the foundation.
We at The Tinkering Society have a mission to foster the further evolution and development of the crypto ecosystem by performing research, building tools, and incubating projects.
For analysis of public companies, though much information is available due to 10-Ks, there is always some information hidden, only available to the insiders in upper management. For crypto protocols, all information is public through code, yielding the possibility of richer, more intuitive analysis.
For analysis of public companies, though much information is available due to 10-Ks, there is always some information hidden, only available to the insiders in upper management. For crypto protocols, all information is public through code.
Right now, protocols are over-collateralized leading to (relatively) low yields. As the future unfolds, the successful protocols will be the ones that increase capital efficiency (put the same amount of money to work in more/better ways).
Until now, most usage has been word-of-mouth. For DeFi to reach mass consumer usage, a more rigorous approach to product distribution will be necessary.
A token should not be merely a way to receive protocol revenues, but rather, fundamental in some way to the use of the protocol such that it accrues value relative to all potential tokens someone might own. Few protocols have achieved this so far.
Why do people who write columns in newspapers get to be wrong year after year without remorse? With prediction markets, we now have the ability to force pundits to have skin-in-the-game. The most widely read pundits should have a successful track record of betting their own money.
As we work through analysis of various protocols, if we find niches undeveloped, we will fund teams to develop those products.
