Steem headed to $10?
The Steemit community has patiently waited for years for the price of Steem to reach the true value of the network (in terms of Metcalfe's law). It seems now the market has finally recognized the value of Steem as a community. The growth of Steem to over $6 could indicate we will see $10 in 2018. This growth will mean there will be plenty of funding capability for SMTs, Oracles, and many other discussed solutions. It also means it will be much much harder for people to buy their way to whale status.
This means all current Steem whales are some of the most lucky participants in the entire crypto community. While some are large holders in projects which do not have underlying utility, Steem actually has underlying utility and measurable wealth. Metcalfe's law requires tracking active users and as active users on Steem grows, combined with greater utility of Steem itself, the wealth of the network also grows. Utility is of Steem is increased by SMTs, by Oracles, by side projects built on top of Steem, even by some of the beneficial bots.
Enigma allows secret contracts, security gain possible without loss of privacy
Enigma is the #3 fastest growing crypto currency right now
Enigma takes a different approach from the approach Dan Larimer outlined in his last article. Dan Larimer in his article takes the approach which states in order to get security from theft everybody must see everything and monitor everyone else. This in essence outsources things to the crowd. In my opinion this approach inherently brings unnecessary risk as the crowd itself can abuse the investigation process and personality cults can form in the crowd.
The Enigma approach differs in that it seeks to create data markets. Data markets strike a different balance because the individual always maintains ownership of their data even when it's being analyzed. In the solution by Dan Larimer there is no mention of the crowd requiring warrants, or what the laws are supposed to be, or how the crowd can be kept reasonable, rational, etc. The Enigma approach does not require the crowd to see the data in order for the data to be analyzed by machine intelligence.
Enigma is supposed to work based on homomorphic encryption (specifically called somewhat homomorphic encryption), which allows for computation on encrypted information. This in my opinion is the answer, where everyone can trust the network to keep their secrets safe while also allowing for the benefits of analysis. Analysis in a way which no human being can abuse the process as human beings shall not be involved in the process. Removing human involvement reduces the attack surface, reduces the possibility of abuse of the process. This may not solve every problem but it does in my opinion solve a lot of the legal problems where an honest player would like to prove they are honest to a network without revealing their identity to individual human beings.
In order for homomorphic encryption to work we have to be able to trust our machines. In order for the crowd to work we have to be able to trust human beings. In my opinion when it comes to dealing with confidential information, the human being has never been reliable. Humans with access more often than not will abuse their access because it gives them advantages over other humans with less access. If all humans have equal access then the humans which are best at conforming could form personality cults and abuse their position. Homomorphic encryption allows for a renegotiation of the balance between privacy and security, by allowing investigators with a warrant to do their work without violating privacy or requiring the crowd to take on the responsibility of the investigators.
Enigma is estimated to be worth 100 billion over 5 years
Whether or not homomorphic encryption is efficient right now is the question. In the long term I predict that due to Moore's law the performance will improve. CPUs will keep getting faster, more efficient, and more numerous. While this is not investment advice I view Enigma as an Ethereum level opportunity in the crypto space at these prices. I bought into Enigma because upon evaluating the pseudo-code in the whitepaper and the theory behind it I found the design to be plausible. I also know they have the brain power to improve on the design flaws over time (MIT backing and support), so when I think that the hardware and software will likely keep getting better which could include new breakthroughs in homomorphic encryption, I do think over a 5 year period holding this token favors me. Also I know this token is scheduled to have MasterNodes which could give it the opportunity theoretically to generate passive income.
My current position on ENG: Long term hold 5+ years, estimated price per token over $100.
Thanks for sharing. I think I'm going to have to read this post again to get a better grasp of it. Sounds smart though...
Highly rEsteemed! I've been very intrigued by Enigma.
For obvious reasons ; )
Vow this concept of homomorphic encryption that Enigma uses is amazing, since machines are obviously more reliable than human beings. This homomorphic encryption therefore would make the systems much more secure. Definitely investing in it. Thank you so much for letting us know about it.
Great news @dana-edwards with good start of year. upvoted through steemfollower!
I just bought some Enigma! High hopes indeed!
@dana-edwards - Yes - it is indeed a time to rejoice for Steemians because the platform is growing. I am not necessarily bothered about the price of steem because of its money value but the growing price indicates the popularity and growth of Steemit as a concept.
About Enigma - The concept of being able to analyze encrypted data is great. I would rather trust machines than crowd when it comes to personal data. I agree with you that the solution has a lot more potential.
Thanks for the heads up on Enigma. Upvoted full through Steemfollower
Regards,
@vm2904
I'm still a beginner. But the thing that matters to me is the success of Steemit, because Steemit doesn't just give us extra income. .. Also gives us a lot of freedom. gives us a society away from selfishness and centralization. And that's a great thing for all people.
I think steem will definately rise, not sure if a token would get 100 dollars. But I wouldn't complain about that lol
really very importants its post.i teach manny works its here.thanks
Rise darling rise this the true happy new year
Steem should moon.. It's time for steem to reign .
I'm interested in any coin with strong privacy because it has potential for adoption by dark web markets....
No Enigma isn't a privacy coin in that sense. It's private computation, more like smart contracts which are private, more like Ethereum with private computation than Bitcoin.
What Enigma in theory could do is allow people to identify themselves to the network without putting themselves at risk for being accused of being involved in the dark markets. The network would simply compute your identity with a smart contract and could in theory show you did nothing wrong without violating your privacy in the process. This would allow you to minimize your risk of exposure to law enforcement, tax authorities, etc.
If you are trying to take risks, and willing to risk jail to be involved in dark markets, I don't think Enigma has any advantage over Zcash or Monero for that. The advantage of Enigma is it would allow stuff like KYC in a completely private manner without any particular human beings knowing the identity. Think of it as a trustless KYC which could be possible where the computation could for example verify that your passport is legitimate and your address is legit, without some human somewhere being able to connect your pseudo-anon identity to your flesh and blood.
That to me is enough of a privacy gain for what I do. Pseudo-anon yet also verified as a flesh and blood person? That for many is a holy grail for free speech and for business as it will make it safer to do business. Any information which you want to share without having it linked to your real world identity would benefit from homomorphic encryption and any information which you want to submit for analysis while redacting the parts dangerous to your interests is also possible with homomorphic encryption.
So for protecting yourself from law enforcement if you are an honest actor, you will want a way to prove you are an honest actor without putting your privacy at risk (hackers, the crowd, and others who want to collect info). The network would let you prove honesty (proof of honesty?) and this in my opinion could allow law enforcement to in a sense rule out many in their investigation.
Take for example the IRS which for instance is digging into Coinbase? The IRS wanted to say all users of Coinbase are somehow tax cheats. The search was narrowed down by a judge (good decision in my opinion) only to people who were trading over $20,000 over a calender year. Using homomorphic encryption, using Enigma, it would be possible for a user to prove their total trades under the accounts linked to their identity, are less than $20,000 per year. This in fact is the millionaire's problem and has been solved specifically by secure multiparty computation. It is also possible to use this secure mechanism of computation to allow an account holder to prove they are a sophisticated investor (millionaire).
References
Lin, H. Y., & Tzeng, W. G. (2005, June). An efficient solution to the millionaires' problem based on homomorphic encryption. In ACNS (Vol. 5, pp. 456-466).
Enigma could be a useful protocol, but Enigma token is completely useless. Why would the token rise in value 25x, if it isn't needed for any of the stuff explained above or in their whitepaper? Just because speculators might pump it at some point?
The token is a utility token. Without incentive why would people provide computation resources for the secure multiparty computation portion? That is general computation.
So you think just because you don't issue your own currency, it is impossible to incentivise people with currencies that they are already using?
Yes because the Enigma protocol cannot accept USD, or DAI, so it requires an intermediate token. You can buy the ENG token with those other tokens but in order for the Enigma protocol to provide incentives across all platforms (not just Ethereum) it must have it's own token.
From my perspective it seems necessary. Why don't you think so?
Well, tell me how it is a utility and I will tell you where you are wrong.
Thanks Dana for crypto news ☝👍
From this speed ...i think... it will cross 100 $ mark next year
Yes, for 100th time. Steem to the moon!
Wow thats an ambitous prediction. Do you think that somebody else could come up with the same system or even better? What makes Enigma unique?
They would need access to the same brain power and very few universities on earth can compete with MIT when it comes to cryptography.
This is a very well written article, thanks for sharing it! I haven't yet heard of Engima and it seems like a very interesting project. I'm going to start digging through their whitepaper right now! I appreciate you sharing ENG and I'll let you know if I end up investing! 🙏🏽
I'm mining with:
-Hashflare (cloud mining bitcoin) https://hashflare.io/r/13062913-1 (i prefer it )
-Genesis Mining https://www.genesis-mining.com/a/2140766 (3% promo with this link)
and trading on Binance for altcoin https://www.binance.com/?ref=11789561 ! :p
made a lot this year :3
this is so good .. i was chacking the rates gain and again today i got this ..love you for this is so good and i wish it go more high
I am glad Steemit is growing and I am a part of it. I am learning so much here on Cryptos. Thank you for sharing. We definetly want to see better systems in this place
It's awesome to see steem finally starting to move up the market cap list again, in mid 2017 we were top 15 and the latter half of the year we started to slip further down the list. With the SMT's coming later this year I think your price prediction of $10 may even be a bit modest.
As for Enigma, don't know too much about it other than the 100% gain it has made this week. Quite a good start to the year for your coin holdings.
Dana, do you still like rlc? Iexec? thanks big bro!
RLC has competition while ENG does not have any equally competent well funded competitors at this time in my opinion. RLC will gain value in the utility of the token if these tokens can buy useful external computations.
thank you for this topic
actially i amn't strong in crypto world so I always appreciate some advice from experienced people
you think 10$ will be a constant price for Steem this year? ot it will fall down again?