Don't Roll Your Own
Decentralization was always an interesting thought, largely unachievable at scale until the advent of the digital world and peer to peer (p2p) technologies. These p2p technologies opened the door for a new digital revolution in Bitcoin. Since Bitcoin was created tens of thousands of individual blockchain projects, Dapps, and tokens are currently being developed. Every day more and more of these projects are launched, live and functioning. Like most burgeoning industries, there will be an extremely high attrition rate, and many projects will fail. Some of the mistakes that cause projects to end in bitter failure are easily avoided. Although digital assets are new and cryptocurrencies, including Bitcoin, are at the bleeding edge of technology, we can look to the past for some time tested lessons and concepts that can help us avoid simple mistakes.
One of those time tested ideas was pointed out in an article from late 2017 by Ethereum developer Nick Johnson.The article is a phenomenal read, and certainly a strong piece for anyone who may be interested in cryptocurrencies and cryptography. In the article Nick pointed out very serious concerns he had at the time with IOTA’s viability as a cryptocurrency. One of the most important lessons from the piece was what Nick states as rule 1 of cryptography - don’t roll your own crypto. It’s enticing for some teams to think they are beyond the blocking and tackling of basic rules like this as they aim to innovate and push the envelope of current technology. However, the lesson can not be ignored, and teams should not fly in the face of battle hardened and time tested cryptography. Read more in the article, but a grossly inappropriate TL;DR explanation would be that cryptography is under constant attack, and only crypto that has been mercilessly pressure tested and held its ground can serve as secure crypto you can depend on.
Let’s not get it confused, innovation in blockchain is one of the things that makes it great and the future of digital assets so bright. We need teams to innovate and invent in order to usher in advancement and better tech. However, there are areas that are ripe for innovation, and there are areas that are solid. Just like cryptography, sound economic principles are foolish to mess with. Just like the relentless attacks that proven cryptography has endured, economic principles have weathered many storms over long periods of time. Economic principles that work have survived and flourished with changes in administrations, changes in bull and bear markets and even changes in dominant government systems.
At Ampleforth, we’re innovating and creating, and we’re doing it with strong base principles in place. When it comes to economics we’ve sought out a team of advisors with the expertise and experience to not only avoid pitfalls, but truly innovate. Among the group of top level minds we're lucky to consult with are the Hoover Institution’s Niall Feguson and Manuel Rincon Cruz. We’ve also brought in the guidance of experts from Pantera Capital such as Paul Veradittakit and Joey Krug. Joey’s insights from his work at Pantera and Augur help us bridge the blockchain world with the business world in a way that few can. Our team takes a responsible and balanced approach to the creation of our technology by leveraging decades of experience in several fields and the result is a protocol that is proving to be one of the most unique projects created to date.
Reliable and established principles in economics and technology are the foundation of what we are building at Ampleforth. For more detail on the Ampleforth protocol and the innovations we’re making with synthetic commodities and ideal money, please check out our website and whitepaper, and stay up to date by following our Twitter!