Blockchain and Digital Assets 2

Question 1

Purposes of money?

Answer 1

1. Unit of Account: way to compare value of various goods and services
2. Medium of Exchange: Allows for non-barter transactions.
3. Store of Value: Allows value to be retained – even if partially – rather than complete decay (e.g. storing food).
4. Transfer of Value: Ease of transfer of value

Question 2

First Western Union money transfer and fee?

Answer 2

1871 and 3% fee

Question 3

How much of global reported crypto trading volume is fake?

Answer 3

Over 90%

Question 4

Percent of the value of U.S. currency in $100 bills?

Answer 4

79%. Large denomination bills are method of choice for criminal activity.

Question 5

What is Aave’s new credit delegation product idea?

Answer 5

Users can allocate collateral to potential borrowers who can use it to borrow a desired asset. There will have to be trust between the two parties, most likely an off-chain relationship.

Question 6

On Synthetix, what is the required collateralization ratio to mint synths and participate in staking rewards?

Answer 6

800%

Question 7

How does Synthetix track the prices of different assets with synths?

Answer 7

The price feeds come from the Chainlink’s decentralized oracles.

Question 8

Which digital assets are securities and which are not, according to Howey Test?

Answer 8

Under Howey, SEC looks at: manner of sale, promotional material, utility vs. speculation.

Not a security: BTC and Ethereum, bc no expectation of dividend or profit aside from price going up, no promoter.

Security: The DAO, bc investor deposits ETH into contract in return for the token, token holders vote on investments, and there is a clear expectation of making profits from the investments.