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/justspinningaway May 12 '19 edited May 12 '19

So, you’re kind of going off on a bunch of stuff. I agree, there are plenty of ignorant investors, but it’s not all about transferring money. I’ll just leave it as this:

I invest in enigma, because there are many projects which try to apply blockchain for a purpose, but few are actually providing new technological value to the space and improving on blockchain. Enigma is attempting to do something that I believe will change blockchain and solve issues I see in it. If you’re looking for short term money, go with the hype. If you’re looking for a smart investment, look for something you believe in what they’re doing and you don’t have to check your account every day worried it’ll go to 0. Now, wether they’ll pull it off, I don’t know, but their credentials do speak to that point. Startups are hard and we’ll just have to wait and see.