Olaf, Polychain founder: the PoS network will account for 50% of the market value of the entire cryptocurrency

Original title:Polychain Olaf sells astro boy and Tezos to USV boss Fred
Author: iron fist invincible happy

This is Tokensum during blockchain week in New YorkTo be byThe jointA Firechat at the MIT conference，对话主广场风投 USV 创始人 Fred Wilson（以下简称 F）主持来对话 Polychain Capital 创始人 Olaf Carlson-Wee（以下简称O）。

We talked about what's hot this year, what's on PoS and Staking and what's hot in the future.

F: hi, Olaf is one of the best cryptocurrency fund managers in the world, and I was fortunate enough to be one of his early investors. We talked about cryptocurrencies and the development of the industry behind closed doors three years ago, and now we're going to talk openly about cryptocurrencies over the last six months. We don't talk about currency prices, we don't talk about returns, we don't talk about positions. We're going to stay positive and we're not going to talk about shorting. So Olaf, what was the most exciting thing about your exposure to the industry in the first half of the year?

O: I think the big thing we saw in the first half of the year was the launch and development of some huge PoS protocols. I think a lot of people are focused on the technical consensus mechanism, but I think there's another aspect of it that's worth looking at: the miners and the holders are the same people, which is different from ethereum and bitcoin. PoS is not only a technical improvement in scalability (sharding, etc.), but also a difference in social dimension. For example, in PoS mining, the profits obtained by pledge can be invested directly again, while bitcoin miners tend to cash out immediately, and it takes time to invest again. This kind of energizes the entire network and economy, like Cosmos and Tezos networks today.

F: is your company participating in the pledge?

O: we are not very open about these decisions, but I think everyone knows that we are the largest mortgage operation in the world.

F: so it's public now?

O: well, just hear it here. I think as the biggest holders of money, we have a responsibility to participate in the security of the Internet. And the participation of the pledge is not only the generation of the block but also the participation of the governance on the chain.

F: there are some service providers who specialize in providing these services. It seems that you want to build your own facilities. Is this a long-term decision? Will you become a service provider in the future?

O: this is for the long term, and we're seeing that, increasingly, the PoS network is still a small part of the market value of the whole cryptocurrency, maybe less than 5%, and I think it's going to be around 50%. That's a tenfold increase, and if you look at our cryptocurrency fund portfolio right now, it's mostly PoS projects. The focus is not only on the technology side, pledge and participation in governance, but also on generating profits for our customers. However, if we find a third party in the PoS pledge like our volume, there will be some problems, such as Tezos. The network needs to pay the security deposit, because our volume is too large and no third party can guarantee our security. There are also security issues, such as Cosmos's pledge of trust, and if Slash happens to the service provider, you lose your token, so you have to trust these third party service providers. So we'll be more confident if we do it ourselves.

F: it's kind of like Google, amazon and Facebook who don't rely on third-party cloud services because they're too big? Then as an independent investor or retail investors, should I find such third-party service providers entrusted pledge?

O: yes, it does. If you are an independent investor or retail investor, it depends on your personal orientation.

F: it's a little different. After I buy the bitcoin, I just leave it alone. But when I buy the PoS token, if I don't pledge it, I lose the profit, right?

O: the way to think about it, for example, with Tezos today, the profit is about 7%, which I personally think is quite substantial.

F: some people say PoS is not as safe as PoW. I don't think you will agree with that. But what do you think?

O: PoW is supposed to put real energy into it, which would make it more secure, but from the cryptocurrency economics point of view, if you want to attack the PoS network, another honest person can fork the protocol, and then remove the attacker, and the original chain becomes a dead chain that he can play with himself. If PoW is attacked, you will still destroy everyone if you want to solve it, while PoS you just need to remove the attacker.

F: for the PoS network, you mentioned two, Cosmos and Tezos. I won't go out of my way to look at your position, but it gives me the impression that you have multiple bets on PoS items. What do you think? Do you not think which one will win in the end, or can you not predict which one will win?

O: PoS field is a little more complicated, PoW field you just focus on algorithms and forces, PoS design is a little more complicated, at this stage, it's still hard to tell which design is better.

F: besides the Staking, what's the next excitement in the cryptocurrency world that could ignite the market? Are there any projects that use this excitement in this area?

O: Web - assembling, I don't want to now on the market project in use? I think the first one will be Polkadot.

F: let's talk about governance

O: one thing I like about PoS, and one thing I like about Tezos, is that voting can determine changes in the code layer, and it's a formal governance system, and voters are actively watching the progress of the network.

F: we talked about many low-level agreements, such as PoW/PoS, smart contracts, etc. Are there any other agreements that appeal to you?

O: I would like to invest in more daos, such as MakerDAO, which is not related to the underlying protocol, smart contracts, etc., but offers a very competitive product. It's very exciting that investors can manage protocols through daos, and I think investing in some daos today is a direction that feels very solid. There may be some controversy in this, although the DAO is still more than you can say, but the progress of our society needs this kind of fresh experiment, some people say we can do these experiments in the laboratory, but we can never simulate human behavior and game in real life.

F: in our real-life example, many of the big threats are generated by hackers. How can cryptocurrency avoid this problem?

O: it's hard to avoid. I think it's easy to have small attacks, and it's hard to tell which ones are hackers and when.

F: if some hackers come to me and say they want to set up a fund to attack cryptocurrencies and make money shorting them. Should I invest in them?

O: haha, it's your choice. Theoretically, I think it's just a hypothesis, but it's interesting.

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