Blockchain Research & Investment

BLOCKCHAIN FUNDAMENTALS

Blockchains

Blockchains are distributed ledgers that process and store digital transactions in a decentralized, immutable, and tamper-proof manner, thus removing distrust and uncertainty. Transactions are fully transparent and encrypted, which makes them tamper-proof. There are many different blockchains, each with its own flavor. Bitcoin's blockchain is all about tracking cryptocurrency transfers. Ethereum's blockchain adds smart contracts. Solana or Sui tweak the formula for speed or efficiency. Some are public (anyone can join), while others are private (invite-only). Blockchains are like different ecosystems: they all share the core idea—decentralized, linked records—but vary in purpose, rules, and tech.

Internet Money

Digital currencies use cryptography to secure transactions and control how new units are made. They run on blockchains, which means they are decentralized—without a government or a bank. They are internet money that can be sent anywhere, anytime, without a middleman. Each cryptocurrency, like Bitcoin or Ethereum, has its own blockchain ledger tracking who owns what. They are stored in a digital wallet, and when coins are sent, the transaction gets verified by a network of computers and locked into the chain. Cryptography keeps it safe—all coins are tied to a private key only the owner has, so no one can steal them unless they get that key.

Smart Contracts

Smart contracts are self-executing programs stored on blockchains that automate certain actions required in a contract. When all participants agree on predetermined terms, the contracts are executed nearly immediately. The execution cannot be manipulated; this way, all participants can put full trust in the desired outcome. For example, if somebody rents an apartment through a smart contract: if they send the payment, the digital key gets released to them instantly. No landlord, no paperwork, no delays. Smart contracts can improve transaction speed and increase efficiency by large scales.

Decentralized Finance

Blockchains, cryptocurrencies, and smart contracts together enable users to conduct their financial activities directly on chain. These activities are processed on chain by decentralized applications that are powered by smart contracts. This all happens without the help of financial service providers such as banks. The use of blockchains guarantees that all transactions are processed securely, immutably, and in a tamper-proof and decentralized manner. DeFi will complement or even replace centralized institutions such as banks. Increasingly more financial services will be offered: from everyday banking, loans, and mortgages over complex asset trading investing to concluding insurance contracts.

BEYOND TECH

Evolution at breakneck speed

Competition

The "race" among blockchains is all about which ones can come out on top in terms of speed, scalability, cost, security, and real-world use. Numerous blockchains have emerged, each trying to solve problems the others can't. It's like a tech showdown where the prize is adoption—by users, developers, and businesses. The race is not yet decided, but it can already be assumed that certain participants will continue to play an important role in the upcoming years.

Disruption

Blockchains are poised to disrupt centralized "Big Tech". Their disruptive power comes from flipping the script on trust, control, and middlemen. It's a system that doesn't need a central authority—like banks, governments, or corporations—to keep things legitimate. They enable more efficient financial systems, true ownership of digital assets, and non-inflationary money assets. Which areas of the economy will adopt the technology first? What dApps will be popular?

Integration

Blockchain technology is steadily integrating with existing infrastructure rather than replacing it. Organizations incorporate blockchain's strengths while maintaining their core systems. This hybrid approach allows businesses to benefit from blockchain's transparency and security without complete overhauls. Supply chains use blockchain for tracking while financial institutions add blockchain layers to existing systems, creating a gradual transition that helps blockchain gain footholds across industries.

Adoption

Blockchains are game-changers, but they have some serious technical and legal hurdles to clear: scalability, energy consumption, interoperability, and security risks, to mention a few. Blockchains are global, but laws are not: legal challenges include the lag of regulation (what are blockchains and coins in a legal context?), smart contract enforceability (code-as-law), privacy issues, numerous crimes (money laundering, tax evasion), and difficult (cross-border) law enforcement.

RESEARCH AREAS

LEGAL

Research in current legislative activities and emerging legal frameworks for blockchains, digital assets, decentralized finance, and tokenization of assets.

Markets in Crypto-Assets Regulation (MiCA)

Categorization of crypto-assets, Licensing and authorization of Crypto-Asset Service Providers, Consumer protection, Market integrity, Anti- Money Laundering (AML)

Transfer of Funds Regulation (TFR)

Crypto-Asset service providers (CASPs) must collect and share information about originators and beneficiaries of crypto-asset transfers.

Financial Innovation and Technology for the 21st Century Act (FIT21)

Clarification of the regulatory status of crypto assets, define oversight and responsibilites of SEC and CFTC, distinguish between securities and commodities in the digital asset space

Stablecoin Legislation

Legislative proposals (e.g. GENIUS Act) focused on creating a regulatory framework specifically for stablecoins

Presidential Executive Order on Digital Assets

Executive presidential order with the goal of establishing a clear, technology-neutral regulatory framework for digital assets

ECONOMIC

Evaluation of the economic value of blockchain technologies, blockchain-based protocols, DeFi applications, and Real-World Assets.

Blockchain (Layer 1 and Layer 2)

The economic value of a blockchain (Layer 1 or Layer 2) is determined by its ability to serve as a secure, efficient, and widely adopted infrastructure. Key factors include security and reliability, decentralization, scalability, utility and adoption, network effects, tokenomics, developer community, governance, and interoperability. Layer 2 solutions derive value from enhancing Layer 1 capabilities, focusing on scalability improvement, security derivation, cost efficiency, ease of use, adoption, compatibility, and tokenomics (if applicable).

Blockchain-Based Protocols

The economic value of these protocols depends on the problem solved and utility, adoption and usage, network effects, tokenomics (if applicable), technology and innovation, competition, and community and ecosystem.

DeFi Applications (Decentralized Finance

DeFi application value is determined by utility and functionality, Total Value Locked (TVL), user adoption and activity, fees and revenue generation, tokenomics (if applicable), security and reliability, liquidity, community governance, and innovation and differentiation.

Real-World Assets (RWA) on Blockchain

The economic value of tokenized RWAs is determined by the underlying asset value, liquidity enhancement, efficiency gains, accessibility and fractional ownership, regulatory compliance, security and custody, interoperability with DeFi, market demand, and transparency and traceability.

INVESTMENT AREAS

Blockchain technology offers many investment areas, each tied to how it is reshaping industries or creating new opportunities.

L1s and L2s

Layer 1 blockchains are foundational blockchains like Bitcoin and Ethereum. Others are Solana, SUI, and AVAX. Buying their native coins represents an investment in their growing ecosystem. Layer 2 blockchains are add-ons built on top of L1s to make them faster, cheaper, and more scalable. Examples of L2s are Polygon, Arbitrum, Base, and Optimism.

DeFi

Decentralized finance uses blockchain tech to offer financial services like lending, borrowing, trading, or earning interest without the need for banks, brokers, or any central authority. It's built mostly on L1s like Ethereum and Solana, powered by smart contracts and open to anyone with internet and a crypto wallet. Examples of DeFi protocols are Lido (liquid staking), Uniswap (DEX), and AAVE (Lending).

DePin

Decentralized Physical Infrastructure Networks blend blockchain technology with real-world physical infrastructure. DePIN uses decentralized systems and token-based incentives to encourage individuals and communities to build, maintain, and operate physical networks. It is like wireless connectivity, energy grids, or data storage without relying on centralized corporations or governments.

Oracles

Oracles like Chainlink and Pyth are like the bridge between the digital ledger and the real world. Blockchains are self-contained systems. They are great for tracking transactions or running smart contracts, but they can't natively fetch data from outside themselves, like stock prices, weather updates, or election results. That's what oracles do: they're third-party services or mechanisms that feed external data into the blockchain so smart contracts can use it.

Blockchain and AI

Blockchain and AI can complement each other in a few ways: Training AI models takes a ton of computational juice. Blockchain projects like Render or iExec are trying to create decentralized marketplaces where people can rent out their unused computing power for AI training. It's like Airbnb for GPUs—kind of cool, but still early days. Bittensor facilitates a network where machine learning models can collaborate and learn from each other. It is trying to democratize access to AI development.

Tokenization of RWAs

Tokenization is the process of converting real-world assets (RWAs) into digital tokens on a blockchain, representing ownership or stakes in assets like real estate, art, or financial instruments. By tokenizing RWAs, they become easier to trade, divide, and manage, often increasing liquidity and accessibility for investors while leveraging blockchain's security and transparency. Leading projects in the RWA sector are Ondo, Mantra, and Pendle.

RESOURCES

Social Media

Twitter, Telegram, Reddit, Medium, YouTube, Discord

LLMs

Grok, GPT, Claude, Gemini

Data Aggregators

Coingecko: cryptocurrency prices
Coinmarketcap: cryptocurrency prices
Defillama: decentralized finance
TradingView: charting platform
Messari: blockchain analytics
Glassnode: blockchain analytics
Tokenomist: token supply, unlocks, and allocations
RWA.xyz: real-world assets

Books

Economical

Lewis, A. (2018). The basics of bitcoins and blockchains: An introduction to cryptocurrencies and the technology that powers them. Mango Media.
Mangrulkar, R. S., & Chavan, P. V. (2021). Blockchain essentials: Core concepts and implementations. BPB Publications.
Sajid, T. (2022). Ultimate blockchain security handbook. Packt Publishing.
Bashir, I. (2020). Mastering blockchain: A technical reference guide. Packt Publishing.
Crowningshield, N. R. (2023). The book of Kaspa: Realizing the Nakamoto dream. Self-published.
Buterin, V. (2022). Proof of stake: The making of Ethereum and the philosophy of blockchains (N. Schneider, Ed.). Seven Stories Press.

Legal

Vieira dos Santos, J., Luz Soares, J., & Lucas Pires, M. (2023). MiCA – Markets in Crypto-Assets EU regulation. Kluwer Law International.
Corrales, M., Fenwick, M., & Haapio, H. (Eds.). (2019). Legal tech, smart contracts and blockchain. Springer.
Wales, J. (2022). The crypto legal handbook: A guide to the laws of crypto, Web3, and the decentralized world. Wiley.

RESEARCH AND INVEST IN BLOCKCHAINS