Welcome to this weeks Just The Metrics

This is our first issue of Just The Metrics and we are very excited to kick off this project...whoop whoop 🥳

So cool to have you on board for this journey into the Cryptoverse!

To give you a heads up on what to expect from this Newsletter:

For details on our assessment framework, scroll down to the metrics section of today's issue 😉

Here's what we got this week:

1. Updates from the #Cardano Cryptoverse

• Project Catalyst Fund9 in full swing

• Valis Hard Fork Combinator - Status Quo

• Job hopping - John Woods is switching to Algorand

2. Diving into Just the Metrics

• Why are metrics important

• Which metrics are important to evaluate crypto projects

Ok, let's dig in!

Project Catalyst Fund9 in full swing

What happened so far in Project Catalyst Fund9:

• New proposals were accepted until June 30

• Proposal Assessments have been conducted until 14th of July,

• and now voting is taking place in August.

Overall, 1.200 proposals have been submitted and have been assessed by 1,093 active Proposal Assessors. In total, there have been more than 22,000 unique assessments (this is almost double compared to Fund8 - 11,650)

This is a great engagement! Keep going #CardanoCommunity!

Status Update from Vasil Hard Fork Combinator (HFC)

We are all eagerly waiting to see the Vasil Hard Fork Combinator (HFC)

Now it seems as if it is on track for the 29th of June. Let's see ;)

What to expect from the Vasil HFC:

So what does that exactly mean:

The upgrade is part of the Basho phase of the Cardano roadmap which focuses on scaling and network & ledger optimizationThis mainly tackles 2 areas:

• It will update Cardano’s core smart contract programming language Plutus, which will enable developers to build stronger, more effective blockchain-based apps (dApps)

• It will implement diffusion pipelining for higher throughput by allowing blocks to be transmitted without full validation and initiating changes to the consensus layer for faster block propagation across nodes.

What does this mean for Cardano?

Putting it simply: they make the network ready to scale when more people are about to use it: The HFC will eventually significantly increase the speed of Cardano, leading to faster transaction processing and validation. Additionally, it will open up new developer use cases and offer significantly improved DApp user experiences.

Job hopping - John Wood switches from Cardano to Algorand

John Woods, former Director of Cardano Architecture at IO Global (aka “IOG”, formerly known as “IOHK”), the company responsible for Cardano’s research and development, left at the end of last month and joined Algorand Foundation as CTO.

What does that mean for Cardano?

• Woods’ departure could result in the possibility of collaboration between Cardano and Algorand

• Woods is bringing his knowledge of Cardano to Algorand, which could lead to the latter accelerating Algorand's scaling development (they work on a similar scaling solution including pipelining)

So let's wait and see where this is going. We will keep you posted about any updates!

Why are metrics important in crypto

In the past 6 months, we have seen the cryptocurrency market take a nose dive as well as projects like TerraLuna collapsing.

Macroeconomic situations are responsible for the crash of the broader crypto market, but the collapse of projects like terra luna stems from the lack of strong fundamentals.

In any asset class, fundamental analysis is a part of a sound investment strategy.

In 1934, Benjamin Graham and David Dodd published Security Analysis, which is often considered the bible for securities valuation.

To this day, investors test financial assets using the metrics explained in their classic book.

For example, when evaluating stocks quantitatively, you can use earnings per share (EPS) or the price-to-earnings ratio (PE ratio) to determine the intrinsic value of a share.

But how can we do fundamental analysis when it comes to Layer1 Blockchain (eg: Ethereum, Cardano)?

Basically,

There are two types of fundamental analysis: quantitative and qualitative

• Quantitative refers to the key metrics that reflect the extent of decentralization, security, on-chain activity, and scalability of a blockchain

• Whereas qualitative analysis refers to for eg: background analysis of a team.

We believe that solving blockchain trilemma is the holy grail of crypto and none of the Layer 1 blockchains have not yet achieved this feat.

This is why it's imperative to make a fundamental analysis of Blockchains through the prism of blockchain trilemma.

Which metrics are important to evaluate crypto projects

When it comes to the fundamental quantitative analysis of crypto projects, through the prism of "blockchain trilemma", we believe that the following metrics are of key importance

• Decentralization & security metrics

• Scalability/modularity metrics

• Tech and scientific background

• On-chain financial activity metrics

Through this newsletter, we are trying to compare and contrast the various Layer 1 blockchains based on the metrics that determine the fundamentals of a blockchain, based on these 4 pillars.

So look for our next newsletter where we compare two major blockchains based on this framework.

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.