Chinese Crypto Leader Li Xiaolai Suddenly Retires 0 37

One of China’s most prominent Bitcoin investors has announced his retirement from the crypto world. Billionaire Li Xiaolai is the founder of BitFund, a crypto venture capital firm that has fostered a slew of Bitcoin-related startups.

Li’s announcement of his decision to withdraw from cryptospace—and investing otherwise—came unexpectedly via his page on Chinese social media site Weibo.

“From this day on,” his post reads, according to TechNode’s translation, “I, Li Xiaolai, will personally not invest in any projects (whether it is blockchain or early stage). So, if you see ‘Li Xiaolai’ associated with any project (I have been associated with countless projects without my knowledge, 99% is not an exaggeration), just ignore it.”

Li is a former school teacher, and claims to be the first person in China to openly trade Bitcoins, rather than hiding behind its famous anonymity. Now, retired from both teaching and investing, he says he’s not sure where to go next. “I plan to spend several years to contemplate on my career change. As for what I’m doing next, I’m not sure just yet.”

Li closed his post by expressing that he still maintains a long term optimism about the blockchain.

Li’s Ventures Grew Crypto Capital, Controversey

Through BitFund, Li has incubated a number of blockchain related startups, including an off-chain wallet called Bitfoo, the crypto exchange YUNBI, and HashRatio, a miner manufacturing company. Li organized 2014’s Global Bitcoin Summit in Beijing, back when you could get a BTC for as little as $440, and years before China instated its full ban on cryptocurrencies.

Earlier this year, Li also acted as managing partner of Hangzhou Xiong’An Blockchain Fund, a billion dollar fund backed by the Hangzhou government. Li stepped down after fellow venture capitalist Chen Weizing introduced a series of accusations against him.

Included in the eleven accusations, which Chen broke on social media and messaging platform WeChat, were a supposed debt of 30,000 BTC that Chen says Li failed to pay on time. Li published a point-by-point response to Chen’s accusations, addressing the 30,000 BTC debt by saying “it’s not true… Chen is just muddying the water.”

Though Li called them “defamations,” and Chen did not offer supporting evidence for his allegations, Li said Chen’s antics “brought material and negative impacts on the reputation of Xiong’An Blockchain Fund” and that his resignation would “let the Hangzhou government continue its push for blockchain development.”

Li was the subject of controversy on another occasion when, in a candid conversation he did not know was being recorded, he outed several influential organizations as scams and said that the best way to succeed in blockchain, even if your project is worthless, is to get famous and build consensus.

The State of Crypto in the People’s Republic

All crypto and blockchain related websites are blocked by the Chinese government, and citizens are forbidden from engaging in crypto transactions. The People’s Bank of China released a statement on August 24th warning against ICOs, which they consider to be “illegal fundraising, pyramid schemes, and fraud.”

But the rules have been difficult to enforce, and crypto still enjoys an active user base in China. Beijing Sci-Tech Report, China’s oldest technology publication, is now the first Chinese publication to accept BTC as payment from its subscribers. Chinese crypto channel cnLedger announced in a tweet on September 25th that Ethereum Hotel, China’s first hotel to accept ETH as payment, is open for business in Sichuan Province.

A Crypto Landscape Without a Leader

The sudden exit of Li Xiaolai from the Chinese crypto scene could have caveats, or greater implications. Weibo users expressed their support and gratitude following his announcement, but some also speculated that his choice of words leaves room for Li to continue investing in crypto indirectly, perhaps through funds or corporate entities. Whether that will be the case or not, for many, his resignation marks the loss of a public blockchain leader.

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A tribal member of the Choctaw Nation, Brian grew up in the Silicon valley under the technological mentorship of Steve Wozniak. He's lived, worked and traveled all over the world, and now writes and makes films in the Pacific Northwest.

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DApp Frameworks Will Improve the Blockchain — Here’s How 0 59

Scalability has always been a problem for blockchains, and it’s the main reason blockchain technology hasn’t reached mainstream adoption. Whether in blockchain fintech—where comparisons of the Bitcoin blockchain’s 10 TPS to Visa’s 24,000 TPS abound—or in other sectors blockchain has touched, this is holding many otherwise promising companies back from delivering new, innovative kinds of value to the public. While larger and better-resourced companies have managed to overcome this problem through sidechaining and/or sharding, there is no substitute for the real thing. DApp scaling frameworks may be a foundation to build widespread solutions to this problem.

What are DApps?

DApps (decentralized apps) use blockchain technology to deliver peer-to-peer value through product offerings, services, or new forms of value. Built on blockchain technology, dApps use its decentralized, trustless, peer-to-peer structure to let users transact between each other without a centralized authority through an encrypted medium (such as NASGO’s platform that we’ve reported on previously).

While this is an otherwise revolutionary solution to the problem of over-centralization, it comes with its own set of baggage. Imagine if every transaction or purchase you made had to be confirmed by a network of other people before completing. This, the consensus protocol—on which Bitcoin, Ethereum, and other leading blockchains are built—is one of blockchain’s greatest strengths, but also one of its greatest weaknesses. For any  blockchain to work as intended, every node participating in it has to confirm every transaction that happens on it.

On the positive side, this massively increases transaction immutability, verifiability and transparency. Unfortunately, it also makes transaction per second (TPS) speed very low. Slow processes usually don’t scale. And without scalability, blockchain technology cannot reach mainstream usage. Right now, only about 8 million people globally use any form of cryptocurrency. To reach mainstream usage, 800 million people must consistently use it.

It sounds like a chicken-and-egg problem, but the blockchain space is already developing resources to overcome this issue. DApp scaling frameworks are one way. They are bundles of code inside blockchain protocols that let distributed apps distribute themselves in a semi-scaled way, letting a blockchain scale improve its TPS and allow more transactions than ever before. Unfortunately, not many developers have access to these, and the few that do have only built the earliest versions of this technology, which brings up the question: is this really a workable solution right now?

What We Have Now

DApps are hard interact with. They’re slow, confusing, and rely on 3rd-party software which only the most sophisticated consumers can readily use. Yet the chief issue here is speed—the key performance measurement of all distributed systems is scalability, and without it, dApps have no real business case or value proposition, let alone any realistic user acquisition strategy. Yet there are fixes for this problem, but little implementation and even less progress on their collective maturation. They exist in five categories, below:

1. Low-Level Optimizations

2. Parallel Blockchains (“sharding”)

3. Homogenous Vertical Scaling

4. Heterogeneous Vertical Scaling

5. Heterogeneous Interconnected Multichains

6. Multilayered dApp development toolboxes

There’s not much to be said for the solutions in the first category. Most of them—consensus algorithms, PoS migrations, parallel processing on transactions and code optimizations in the Ethereum Virtual Machine—are low-level and impermanent band-aids to the deeper problem.

The best of the solutions in the second, third, and fourth categories are at this stage still in the proof-of-concept phase, being built almost exclusively by and for Ethereum and Bitcoin, such as projects like Plasma and the Lightning Network. These are getting the most traction here only because they’re developing out of Bitcoin and Ethereum, but are nontheless still are very early-stage.

The idea behind Plasma is to take smart contracts, give them self-governing alongside self-execution properties to let the Ethereum root chain essentially create buds or “shards”—tiny sidechains each monitoring one aspect of a transaction instead of putting that combined pressure on the root chain—to distribute consensus, letting blockchains dramatically scale their TPS. Lightning Network deals more exclusively with payments—it’s a second-layer payment protocol next to the root blockchain, using a peer-to-peer system to let users make cryptocurrency micro-payments. Both platforms are examples of how some blockchain companies are using secondary and tertiary parallel blockchains to scale their TPS.

Concepts like Polkadot—scalable heterogeneous multichains—provide foundations for later functionality in the area of relay-chains, where the goal is to build validatable, globally connected, frequently-changing data structures on top of these frameworks.

Companies like MenloOne—multilayered dApp development toolboxes—create and deploy digital tools for dApp developers to use when they’re building. They include:

  • A layer for communication.
  • A layer for governance (given lack of server admins to ban malicious users in a decentralized network).
  • A local wallet for smooth transactions (no more MetaMask popups).
  • A core layer, a network of content nodes which cache mirror versions of blockchain data.

These incorporate fragmented systems to make dApp development easier for professionals.

Together, solutions in these categories are working to help top blockchains scale TPS to thousands per second.To become adopted by the mainstream public, these frameworks will need to use a variety of different tools to make transactions effortless for blockchains to process.


What do you think about the scalability of blockchains today? Is it a problem for you or are you unaffected? And, what do you most want to see happen in this area of blockchain technology in the near future? Post in the comments below to let us know!

Bow To Your New God, Blockchain. Bow Down. 0 85

It’s pronounced ‘Zero Ex Omega’.

It’s the brainchild of two people who apparently have lots of time on their hands and a penchant for publicity stunts: artist Avery Singer, child of Ramona Singer, who seems to be someone on television, and Bay Area whiz kid slash former CEO of Augur Matt Liston.

Together at a conference at New York City’s New Museum, Singer and Liston unveiled 0xΩ. It’s a blockchain religion they invented.

Do we need a blockchain religion? Of course we do. Look at it this way: blockchain has always been a religion. Singer and Liston are just making it official—and, of course, decentralizing it.

Not a Critique of Capitalism, But…

“In our secular culture, we have sort of replaced religion with capitalism or, rather, this rampant consumerism,” Liston told Wired. “0xΩ isn’t a direct critique of that, but I think it’s definitely a clear point to make.”

Put that way, 0xΩ isn’t so different from the Church of the SubGenius, which satirizes everything on Earth to rough sketch a core dogma of meaninglessness and mayhem transcendable only by the attainment of ‘slack’. Or more recently, it resembles trends in chaos magick, which asserts that “nothing is true and everything is permissible.”

These anarchic belief systems (or anti-belief systems?) can be seen as responses to some of late capitalism’s gaping failures, namely the frenzied fervors of consumerism, epidemic feelings of void and alienation resulting from an absence of cultural roots, and the general collapse of institutional religion as a place to find any meaning or value.

From this climate emerges the great and terrible Dogewhal.

Yes, Dogewhal.

“We have this avatar I’ve created who is a narwhal with a doge head, a beret, tattoos, an infinity tail, an ethereum logo,” said Singer at the unveiling, while muffling laughter.

Is this a joke? Yes! Is there more to it than that? Also yes!

The rest of the crypto world takes itself so seriously, it can stand a little shake up from time to time. If nothing else, 0xΩ brings that relief. While ostensibly the meaningless antics of the clever, it could actually have some new ideas about how we approach belief systems, and some new applications of the block.

The Block X Religion

0xΩ is a custom religion, but it’s also a platform for existing religions. On 0xΩ, everyone in the religion has an equal say in which beliefs prevail, and what will be the content of sacred texts.

It’s a takedown of traditional hierarchies in which acolytes apply themselves to the instruction of a master who holds the keys to the kingdom, hierarchies which people are less and less interested in.

“We’re incentivizing mindsharing, and eventually mind upload to use consensus to form a structure of collective consciousness,” Liston said. This deliberate manufacturing of consensus reality, if it works, would make Peter J. Carroll proud.

Where Did This All Come From?

The name ‘0xΩ’ itself has gnostic overtones. The void, or the original nothingness, multiplied by the sum total of all material existence, signified by the character Ω. Nothing times everything. Whence comes the universe? From what void does it all spring? You could ask the same of Bitcoin, which spontaneously emerges from nothingness just as the universe did, or does, maybe.

Liston, who also previously worked with a decentralized prediction company called, ironically, Gnosis, says he “grew up Jewish.”

He was pushed out of his position as CEO of Augur in a series of legal battles surrounding one of the world’s first ICOs. Augur, a betting tool that rewards users for correct predictions on elections, markets, or even the weather, seems an apt place to start for someone whose business aspirations seem to revolve around the ethereal nature of belief.

Regarding his approach to blockchain, Liston says “I’m obsessed and very driven by what these technologies can do, but I’m bored with it being a space that’s dominated by engineers and finance people.”

Like What Does Religion Even Mean, Dude?

It raises questions like: Is a democratized religion even a religion? Do the people know best on matters concerning the secret laws of nature? What is the point of all this? The best answer to the latter is probably ‘well, what is the point of anything?’

Sure, 0xΩ may be dismissive of the cultural post that world religions occupy. It’s a bit like someone mouthing a bunch of gibberish and declaring they’ve just founded a language. But it disrupts the evangelical fervor of blockchain enthusiasts, and that, if nothing else, is a service to humanity.

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