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Cloud Fire Capital – Digital Asset Watchlist
(As of 2/23/21)
March 22, 2021
Definitions for context

Decentralization - The process by which the activities of an organization, particularly those
regarding planning and decision making, are distributed or delegated away from a central,
authoritative location or group. Taking the power of one central authority and systematically
spreading it out across the board.

Blockchain - Blockchain is a global, digital, and public ledger that records online
transactions and is distributed across an entire network of computer systems. Blockchain is the
core technology for Cryptocurrencies like Bitcoin. A blockchain ensures the integrity of a
cryptocurrency by encrypting, validating, and permanently recording transactions. A blockchain
is similar in structure to a bank’s ledger, but different because it is transparent and accessible
to everyone, immutable (not able to be changed), secured with cryptography, and cannot be
duplicated.

Blockchain is a revolutionary technology that solves a problem no computer scientist has been
able to solve for decades. The Byzantine Generals Problem, which describes a situation where
involved parties must agree on a single strategy in order to avoid complete failure in a computer
system, but where some of the involved parties are corrupt and disseminating false information
throughout the network or are otherwise unreliable.

There is an infinite amount of use cases for Blockchain Technology. To name several:
  • Secure sharing of medical data
  • Decentralized Finance
  • Data Analytics and compliance
  • Cross-border payments
  • Real-time IoT operating systems
  • Personal identity security
  • Anti-money laundering tracking system
  • Supply chain and logistics monitoring
  • Secure voting mechanism
  • Digital Asset exchanges
  • Real estate processing, loan and mortgage securitization, land registries, etc.

Digital Assets/Projects that we currently pay the most attention to

Ethereum - Ethereum (ETH) has become a decentralized global cloud computer; meaning that
the next generation of smaller, up and coming cryptocurrencies have built their projects and
protocols on Ethereum’s Blockchain. This has created a giant ecosystem of decentralized
networks that are both strengthening the industry, and Ethereum simultaneously.

ConsenSys - ConsenSys was formed as a physical company/incubator to aid the projects that
were built off of Ethereum, as mentioned above. They provide strategy, mentorship, and specific
expertise for companies wanting to begin, or expand into Blockchain Technology. Amazon (AWS)
was a client of ConsenSys when they were creating a decentralized sector of their company,
using Ethereum. This all results in a stronger infrastructure for both Ethereum, and the entire
ETH ecosystem (A large percentage of the successful cryptocurrencies). ConsenSys has now
expanded into building Blockchain solutions for asset management, global trade and commerce,
real estate, capital markets, etc. for some of the largest companies in the world.

Litecoin - Litecoin was created as both an advanced monetary network (Lightning Network) like
PayPal, and a cryptocurrency like Bitcoin. It must be noted that Litecoin was created on the
Bitcoin (BTC) Blockchain; meaning that it is not a competitor of Bitcoin, but actually a more
technologically advanced extension of BTC. The founder of Litecoin stated that their mission
was to create the silver to Bitcoin's gold, and LTC has done just that.

Tether - Tether (USDT) is considered a stable coin. The concept of a stable coin is quite literally
to create stability in the crypto market by providing a cryptocurrency that is pegged to the U.S
dollar; the world's reserve currency and the most trusted monetary system. Tether was also
built on top of the Bitcoin blockchain, therefore strengthening all things in the Bitcoin network.

Cardano - Cardano (ADA) was created by one of the Co-founders of Ethereum, and former CEO,
Charles Hoskinson. He left Ethereum to create a Blockchain that was technologically superior
(faster, smoother, more secure), and more decentralized (a very important concept in the crypto
space). Cardano is still in the beginning stages of its protocol but is creating a serious buzz due
to the battle between ETH and its former CEO. We believe that both Blockchains will survive and
thrive into the next decade. This will create an incredible investment opportunity on both sides,
but more specifically with Cardano because of the fact that it sits at $1.12 per coin at the time
of writing (similar to "per share" in the traditional stock market).

Polkadot - Like Ethereum and Cardano, Polkadot (DOT) is also a rising Blockchain network with
an ever-expanding ecosystem of next generation crypto protocols built on top of its code. What
sets Polkadot apart from their competitors is the fact that they seek to interconnect all existing
Blockchains. This means that they are attempting to create a next generation internet where
multiple Blockchains exist coherently (together to create a larger whole), essentially forming
what some experts call Web 3.0. Instead of there being a future where only one network exists,
Polkadot is pursuing a more balanced, less monopolized, and therefore more decentralized
future for the crypto industry.

Chainlink - Chainlink (LINK) and their mission can be described in a very simple manner. They
are attempting to allow real world data (weather, sports, stock prices, analytics, statistics, etc.)
into multiple blockchain networks, like the ones mentioned in previous explanations. This is a
CRUCIAL piece in creating a next generation internet that is powered by blockchain technology,
and thus far Chainlink is the only network successfully making it happen. It is what will allow
the transition from the current computer networks and systems that we use today, to
Blockchain and more decentralized networks.

Binance - Binance (BNB) is what the crypto world calls a decentralized exchange (DEX). An
example of a traditional exchange would be Robinhood, TD Ameritrade, Fidelity, etc. What
Binance is providing to the blockchain ecosystem and to society as a whole
is financial independence. Malfeasance such as what happened with Robinhood
and GME/AMC exposed the obvious issues with centralized exchanges that are connected to
large institutions, and how everyday citizens are becoming the product instead of the customer.
These fundamental advantages led to Binance now having the third highest market cap within
the entire Digital Asset industry.

Theta - Developers say that Theta will shake up the video streaming industry in its current form.
Centralization, poor infrastructure and high costs mean that end users are often left with a poor
experience. Content creators likewise earn less revenue due to the barriers between themselves
and consumers. Theta is essentially trying to revolutionize content-based networks such as
YouTube, Tik Tok, and even Instagram by giving both the creators, and the consumers more
freedom to interact as they see fit. They have partnered with corporations like Sony, YouTube,
Google, Samsung and the list continues to grow.

VeChain - VeChain (VET) is a Blockchain-powered supply chain platform. They are combining
multiple revolutionary decentralized concepts to create an ecosystem which solves some of the
major problems with supply chain management. The idea is to boost the efficiency, traceability
and transparency of supply chains while reducing costs and placing more control in the hands of
individual users. VeChain is a perfect example of how Blockchain Technology will, and
currently is, being used to boost many economic sectors and not just finance alone, and how it
can very well be the technological foundation of our digital world.
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