CWC Newsletter #40 (October 7, 2020)

By KJ Kingsley, Analyst


Block.one-Google Cloud Partnership and an Updated Real Estate Analogy


Welcome back and appreciate that you are joining us in our revamped weekly newsletter geared towards extracting value from the latest EOS and EOSIO developments.


CoolWave Capital and I hope that we can interpret and synthesize the most important points from the top news and highlights of the week. Although there is constant misinformation about the growth of EOS and EOSIO, the CWC Newsletter hopes to make more visible its' strengths while making sense of its' flaws.


For this week's newsletter, I will turn my attention to (1) linking the benefits for token holders with the recent developments of a Google Cloud-Block.one partnership and (2) an insightful real estate analogy provided by a community member.


Yesterday, Block.one and Google Cloud made a huge announcement that Google Cloud would become an EOS Block Producer. This is a great development because it indicates that Block.one is committed to the longevity of the EOS public mainnet. Also, Google Cloud legitimates the EOS public blockchain as a recommended blockchain to deploy one's decentralized applications.

In a press release, Block.one explained how Google Cloud's inclusion as an EOS Block Producer would strengthen the public blockchain:


"Block producers are a core component of the EOS network; attracting a block producer candidate of Google Cloud's caliber masks a milestone for the network...Google Cloud will leverage the EOS network's world-class performance and vibrant open-source community as it works to become a block producer."


Speaking to the benefits for developers, Google Cloud's press release added: "Google Cloud will work with Block.one to enable new ways for its open-source community of developers to engage and build applications utilizing both the power of the EOSIO protocol and Google's unparalleled developer experience in the Cloud."


The push by Block.one to create in-roads with the internet giants such as Google Cloud has also been met with the same intensity with their concerted effort in the financial sector. On October 6, 2020, Block.one appointed Goldman Sachs Veteran R. Martin Chavez to Chair Advisory Board. Chavez was previously co-head of securities at Goldman while overseeing the earliest cryptocurrency developments at the bank.


Bottom line, the partnership with Google Cloud and the hiring of Chavez indicate that the growth of EOS is only getting started. After a couple years of a lagging token price, hopefully the exciting news foreshadows a booming future in the short and long-term.


An Updated Real Estate Analogy of the EOS token


To better understand the EOS token value proposition, community member Kyle of EOS Vibes gave a great overview last week that compared a real estate financial structure that was most akin to EOS, which includes the update to the resource model.


Previously thinking, the EOS token was seen as ownership of a percentage of the resources of the EOS blockchain. If you owned the EOS tokens and staked them for resources, you were given the privilege of those staked resources. However, it has created a difficult time for developers to estimate how much resources they need staked and at what price.


The new resource model that is currently being tested is to make resources more readily available to everyone, making resource use more efficient and cost-effective. With the new resource model, the real estate analogy needed some updating to incorporate the fact that token owners did not explicitly mean that they owned a percentage of the network. The new real estate model is more akin to token holders as a group of owners of a rental/sharing economy, such as ride-share or office-share.


The resource model, in theory, would provide a more superior experience for EOS developers and investors in relation to Ethereum. On Ethereum, transaction fees are too expensive that developers and users are looking at alternatives to meet their needs in decentralized finance and other sectors.

Ultimately, the EOS token holders should feel more confident in the coming weeks due to the fact that new developments of EOS and EOSIO-based projects are coming out. Just today, eosfinex announced that they would be launching their decentralized exchange tomorrow that will inject much needed liquidity into the EOS ecosystem.


It will be interesting to see what types of FUD (fear, uncertainty and doubt) will be spewed by crypto maximalists, no-coiners, and trolls in response to these significant updates.


Disclaimer: KJ Kingsley is not a financial advisor and holds the digital tokens or cryptocurrencies represented in the content above. This content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this post constitutes a solicitation, recommendation, endorsement, or offer by myself to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction. The opinions expressed in this publication are those of the author. They do not purport to reflect the opinions or views of any of the author’s employers.

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