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.

$107 Million Startup Digital Asset Incorporates Smart Contracts Into HyperLedger Framework

Digital Asset, a New York-based firm that has received over $100 million in total funding in order to develop a platform for “reducing settlement latency and counterparty risk,” announced a couple weeks ago that it had open-sourced DAML “under the Apache 2.0 license.”

According to its official website, the Digital Asset Modeling Language (DAML) is a software development stack created specifically for writing secure smart contracts. The DAML software development kit (SDK) is now available for download.

An “Exclusive Smart Contract Language” For “Common Domain Model”

Additionally, the management at Digital Asset noted in its blog post, published on April 16, that ISDA, which is the “standards body for the derivatives market,” revealed recently that DAML is “the exclusive smart contract language” for their “Common Domain Model” (CDM).

The CDM is “an industry data standard for booking and representing over-the-counter (OTC) derivative products and the events that occur on these products throughout their lifecycle.”

As mentioned in Digital Asset’s announcement, they’ve recently open-sourced a “reference library and [supporting] application.” The Digital Asset management team also announced this month that it has been working with developers and researchers at VMware, in order to “integrate DAML” with their enterprise-grade blockchain platform, called VMware Blockchain.

In addition to launching these initiatives, the team at Digital Asset has revealed it has also been collaborating with “fellow Hyperledger members” through a Blockchain Technology Partners (BTP) program. This will reportedly involve “integrating” the DAML runtime environment with Hyperledger Sawtooth.

Developing Software On Modular Platforms

According to Digital Asset, the Hyperledger Sawtooth is a complete modular platform for creating, deploying and managing distributed ledger technology (DLT)-based networks. The New York-based tech firm also noted that Hyperledger Sawtooth complies with standards and requirements specified in the DAML framework.

As detailed in the post, Hyperledger Sawtooth’s “Transaction Processor has a very flexible approach towards roles and permissions, for example, and is based on a very natural DLT network topology of fully distributed peers. DAML is based on a permissioned architecture and Hyperledger Sawtooth can be configured to be permissioned without requiring special nodes.”

Abstracting Implementation Details

DAML is used to define and write smart contracts in a manner that creates an abstraction. This is done so that certain blockchain-specific implementation details are hidden from end-users, such as the type of cryptography scheme used and the technical methods of data distribution.

One of the main reasons for using abstraction is to allow developers to program through a user-friendly API. Moreover, code written using DAML support allows software architects to easily migrate applications from one platform to another without having to rewrite a lot of code.