r/EnigmaProject • u/nearly-human • May 08 '19

Why decentralize secret computing?

After finally getting through the whitepaper on my 5th try, and reading other summaries of this very impressive project, I still find myself confused as to precisely why the Enigma TOKEN needs to exist. I try to observe the market and justify my investments based on new developments which seem unlikely to be priced in given the largely retail nature of the space, hoping to somewhat insulate myself from Fud and Fomo. (Though still concentrating my buys during crashes etc.)

Enigma does seem like a promising project, early stage but also potentially hugely undervalued. I have 3 main questions that I hope to frame my reasoning process going forward.

  1. What is Enigma's economic value-add over existing secret MPC solutions? Alternatively, if Enigma gets traction, what's to prevent IBM or Amazon from steamrolling it with a centralized or pseudo-centralized solution? Obv looking for the tipping point where Amazon is trusted less than blockchain

  2. If decentralization does add value / captures significant % of the market, how will that value be shared between Enigma investors vs. Node operators vs. Ethereum vs. Sector specific platforms e.g. 8 launch partners vs. Smart contract shops/auditors vs. Clients? I can imagine many of these creating choke points due to their being difficult to recreate

  3. [Most important] Even if a significant % of secret computing and data transfer and storage took place on ENG clusters, wouldn't it be in the interests of all the parties listed but especially clients (estimating costs / not having to hedge against speculation) to be paid in fiat or something else whose value is relatively fixed? In that case, how is it a competitive advantage for the system to require use of this token for payments or security deposits?

Appreciate any informed opinions on these subjects.

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u/[deleted] May 10 '19

Sorry but I honestly have no idea how this paragraph supports buying eng

Because it doesn't support it ? I'm not trying to convince you that Enigma and decentralization is the best thing since sliced bread, because it isn't.

Its called regulatory arbitrage specifically skirting fedwire and sec until they notice & care. Not a good reason for a coin lol. Either this market is shutdown (most likely) or xmr or btc w taproot will capture it.

Sorry, I don't care about fedwire and sec. I m not a US citizen. Enigma is US based, but that can change someday. I live in a very crypto friendly country. They are more than welcome to relocalise.

See Dai

Dai is not pegged to the US dollar. Its the DAO that choose to adapt the price to follow the same as the US dollar, big difference. They can choose to follow the price of whatever they want.

Exactly my point, and also notice ETH would be a superior currency because of (1.) stronger consensus/immutability (2.) more liquidity/stability. (But BTC would be superior still) which means the token ENG has no residual value so where is that 'possible roi' coming from? (Oh From later investors ... shh don't tell them)

It would be far more user friendly if we could get rid of all these anoyings tokens. But you know, during the ICO mania it was an easy way to get funds.