Ethereum's Dominance May Soon Be Challenged, Says $75 Million Crypto Fund Co-Founder

  • Kyle Samani, the co-founder of crypto hedge fund Multicoin Capital, believes Ethereum's dominance will be challenged.
  • Cosmos, DFINITY, among other dApp creation platforms will help the market for smart contracts become more balanced, according to Samani.

Kyle Samani, the co-founder and managing partner at Multicoin Capital, an Austin, Texas-based “thesis driven” cryptocurrency fund, recently noted that projects such as Dfinity and Cosmos could potentially challenge Ethereum’s (ETH) dominance in the decentralized application (dApp) and smart contract development industry.

Samani’s comments regarding how he expects the blockchain sector to evolve came during a recent interview with Business Insider. The finance and management graduate from New York University’s Stern School of Business revealed he believes that by the end of 2019, the Ethereum network will still be the most dominant blockchain network to launch initial coin offerings (ICOs).

However, he noted there will be a more balanced market moving forward as there are many well-funded projects similar to Ethereum that are currently being developed. As CryptoGlobe reported in late August 2018, Dfinity’s Zug, Switzerland-based “internet computer” project managed to raise over $100 million through a private token sale. In total, the seemingly promising initiative has raised nearly $200 million.

Dfinity's Launch Delayed 

Dfinity’s funding round was led by giant venture capital firm Andreessen Horowitz, Multicoin Capital, San Francisco-based hedge fund manager Polychain Capital, early stage investment firm Aspect Ventures, among others. On December 13, 2018, Dfinity’s development team announced they would be postponing the launch of the world’s first “internet computer” platform.

As mentioned in the company’s Medium blog post, Dfinity’s developers were “working on timelines” for releasing several different versions of their software. A “cut-down” version of the platform was scheduled to be introduced during Q1 2019. However, Dfinity’s team said that supporting such a beta launch would slow down the progress of the full version of their “world computer” program.

Getting Closer To Blockchain Interoperability 

Cosmos, the other blockchain project Samani believes will take off and challenge Ethereum, is focused on developing solutions which will allow different blockchains to communicate with each other (blockchain interoperability). As covered, Lucas Nuzzi, the technical analyst at Digital Asset Research, had said in June 2018:

We are very close to achieving interoperable blockchains, and this has the potential of changing the entire cryptocurrency market.

The Cosmos project aims to create a “decentralized network of independent parallel blockchains” which is referred to as the “internet of blockchains.” Cosmos’s development team claims that their decentralized exchange (DEX) will be as fast, if not faster, than the existing centralized exchanges. Last year, the Cosmos team said they completed most of their development work, and were prepared to roll out different versions of the platform’s software including beta versions for testing.

IBM’s VP of Blockchain and Crypto on World Wire, XLM, Ripple, XRP, and BTC Price

On Wednesday (February 20th), during an interview with Australia's largest comparison site, Jesse Lund, IBM's Vice President of Blockchain and Digital Currencies, talked about his company's cross-border payments solution "IBM Blockchain World Wire"(which runs on the Stellar network), how this product differs from what Ripple is doing with xRapid, and gave his medium term (end of 2019) and long term (some day) price predictions for Bitcoin (BTC).

In this article, we focus on some of Lund's most interesting comments made during this interview.

IBM Blockchain World Wire

"The architecture of World Wire is really a cross-border payment network, the magic of which is the ability to send a payment message instruction saying 'Hey, I'm sending you something; get ready!' and on the other end, the receiver is making sure that who you are sending it yo is not some nefarious actor or bad actor, but once that happens, and that happens really fast, then we send the value along, and that transfer of value is made possible by an ecosystem of digital settlement instruments, of which [Stellar] lumens is one."

"IBM's long game in this is to be the network operator... So, the subscribers, the customers, if you will, of World Wire are market makers who really provide the pay in, pay out locations, and they themselves have corporate clients and probably retail clients. So, we're really providing a kind of conduit through which money can flow in real-time." 

IBM Blockchain World Wire vs. Ripple's xRapid

"Credit Ripple for the vision of using a digital asset in order to enact immediate settlement with finality. I think their implementation followed one path. Our implementation is a little bit different. We are not the issuer of an asset. In fact, what we believe is that there should be an ecosystem of a variety of digital assets that provide the settlement instruments that enable these cross-border payments. The participants on the network should be able to choose and negotiate their choices in real-time and the pricing might be different depending on the settlement instrument you use. So, I think with Ripple, they're looking at XRP as the primary digital asset for settlement, and for us, it could be lumens, it could be Ripple, it could be XRP even, it could be Bitcoin, but it would also probably include other instruments like stablecoins and even eventually, hopefully soon, central bank issued digital currencies."

Bitcoin (BTC) Price Prediction

"[Bitcoin's price at the end of 2019] ... I think it's going be higher [than today], I'll go with $5,000, but let me just say this. I've got a long term outlook... I see Bitcoin at a million dollars some day. And I like that number because if Bitcoin is at a million dollars, then satoshi is on value parity with the U.S. penny, right? And that means there's $23 trillion of liquidity in this network. Think about $23 trillion in liquidity and how that changes things like corporate payments, large payments, and what that does to the financial services landscape."

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