Jeremy Rubin is dropping major bitcoin facts.
Forgive me freaks, your Uncle Marty has sinned. He's waited more than two months to write about Jeremy Rubin's POWSWAP; a smart contract on bitcoin that allows individuals to trade hashrate derivates with each other. Actually it's probably good that I waited until today to write about this topic because it is a great follow up topic to yesterday's issue.
This works today in Bitcoin Core on Mainnet, no soft-forks required.
— Jeremy Rubin (@JeremyRubin) November 9, 2019
The basic protocol does not require participation of any other parties other than you and the person your trading against.
This is real #DeFi.
Why would anyone want to trade these? Is it too niche?
4) HODLers can buy insurance against hashrate drops
— Jeremy Rubin (@JeremyRubin) November 9, 2019
5) HODLers can sell against a large hashrate change in order to generate passive interest.
6) Traders can do their thing in between the two to generate profits off of inefficiencies
There are many other types of trades possible
Hashrate derivative markets will have opportunities for making money, but larger impact of a liquid hashrate market is to stabilize Bitcoin's hashrate production. Allowing miners to leverage also incentivizes hashrate growth.
— Jeremy Rubin (@JeremyRubin) November 9, 2019
This makes Bitcoin more secure. We all win.
Lastly, if you're interested in helping, hit the DMs :)
— Jeremy Rubin (@JeremyRubin) November 9, 2019
Truly smart contracts and DeFi brought to Bitcoin. Done correctly with minimalist design that doesn't rely on a 3rd party oracle. Bitcoin is the oracle. The haters are in disbelief!
Right now, POWSWAP is in the early engineering phases and could use some help (help with dev skillz or money if you can). But if it does garner enough developer and investor attention, it could come to the market as a full fledged product that competes with derivatives contracts that could potentially be offered by the CMEs of the world. All issued and settled via the Bitcoin blockchain directly between two or more consenting adults. What a time to be alive.
The hashrate derivatives products that POWSWAP wants to bring to market would allow bitcoin miners and hodlers to hedge their positions. On top of this, Jeremy believe it would help to stabilize hashrate and allow users to enter positions that essentially make their bitcoin holdings retain a stable value. Last night, I had the pleasure of sitting down and discussing POWSWAP, OP_CHECKTEMPLATEVERIFY, dev funding, and much more with Jeremy for Tales from the Crypt. Be on the lookout for that episode next week. Jeremy is able to explain this stuff much better than I can.
Final thought...
New Mac Miller music is a great way to start a Friday.
Enjoy your weekend, freaks.
