What is Lukso?
This is a question asked by many people who I speak to regarding this project. Most people are just starting to wrap their head around Bitcoin! Many have also heard about Ethereum, but don’t understand the concept of the smart contract and it’s underlying value.
For the crypto savvy people who have come to understand Ethereum, and tout so called “Eth Killers” such as Cardano & Polkadot, solidify that they don’t know as much about the space as they would presume. What you’ll come to notice as a key trend amongst these projects, is that they aim for interoperability and Scalability. In laymen’s terms the goal is for all these blockchains, is to be able to interact with each other seamlessly via EVM and allow for numerous micro transactions to occur without congestion.
When all blockchains could interact with each other cross-chain, it allows for a truly free market. Market cap can flow based off of merit and preferences instead of just “first mover advantage” that hinders growth to one area. When blockchains are interoperable, it allows for people to freely experiment in all ecosystems, enables true decentralization as they are not forced to build on one platform, which in turn helps with scalability as it drastically reduces congestion due centralization.
That’s a lot to digest! Instead of trying to kill Ethereum, the true aim is to be able to interact with it and build with it. Most founders acknowledge the importance of collaborating with Ethereum for greater success, If they wanted to truly eliminate it, they would have built something totally different (not an EVM).
Now we’ve spent enough time clarifying the birds and the bees of EVM, time to get into the nitty gritty of what Lukso really is.
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The Vision in a nutshell
Enter Fabian Vogelsteller and Marjorie Hernandez. Together they founded Lukso with a vision to create a new social economy, with bold ideas to break up centralized social media monopolies and reduce fashion fraud/waste. This is quite a tall order! this is how they plan to do it.
To begin, LYXe is a social token designed to be an inclusive lifestyle currency, used as a medium of exchange for luxury goods and community services/connection. Through the use of a digital profile, we allow ourselves to have a unique signature online, similar to a ID/SIN. This allows for verifiable proof of your digital existence, and helps to eliminate online fraud. This technology even boasts online sign ins without the need for passwords or private keys!
Now one of the other important aspects of this anti-fraud technology is the digital certificate associated to your universal profile. This gives you the ability to have recorded proof of ownership over digital/physical items. This bridges the gaps between physical goods and their digital representation! Meaning if your assets get stolen they will be recognized as such, and harder to resell.
Voila! welcome to the world of phygital ownership!
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Why do I believe this will revolutionary?
It’s quite simple. The founder Fabian.
Of all the Ethereum foundation members who have spun off to create their own projects, Fabian by far had THE best credentials in the space. Most developers do not have his resume, but have projects with much more “hype” which isn’t something I look for in a project. Hype is fun when you want to pump and dump a project, not so important if you plan to change the landscape of a whole industry.
I’ll begin by citing the most important contributions Fabian has made to the crypto-verse!
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Starting with the ERC-20 token standard. This right here was arguably the most important contribution to the Ethereum Ecosystem. This alone enabled for new tokens to be built, transferred and interact with smart contracts, as well as each other. This token standard single handedly sparked the DeFi bull run of 2020, to which he is the main author.
Next is ERC-725! This is the Universal Profile Standard LSP1 and ERC725, the Blockchain can become a decentralized social network, creating a digital reputation without a central instance (like facebook). To keep this simple it’s all upheld by smart contracts and NFT’s. The end goal is to allow users to interact with each other as smart contracts instead of wallets, and to allow NFT ownership to be truly verifiable, eliminating phygital fraud (open sea hacks/theft).
This is huge if you consider how large the NFT market has become (topping $41 billion), and how important a technology like this will be for it to truly flourish. While He did not author ERC-721 standard, he is creating the standard necessary for it to go mainstream. Possibly cementing himself as the cause of another bull run…
Lastly is web3. During the time Fabian worked in the Ethereum foundation (2015–2018), he built the official Ethereum Wallet, the first decentralized web3 Browser (MIST) and tools like web3.js, which set the tone for future development. We see that web3 has created a new vision of how the internet should be, with this massive hype around it! yet once again he humbly accepts none of it…
wrap this whole thing up with his concept for something called rICO which stands for “reversible Initial Coin Offering”. This allowed the user to return their tokens during the ICO! This is a huge step in building trust as it shows confidence and transparency in the foundation. This was extremely important after watching the ICO scams of 2017.
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What does this all mean?
Well for starters it shows that Lukso foundation represents hard work over Hype trains. The founder has made some of the biggest accomplishments in the space, paved a path to multiple bull runs, yet he makes no waves. This is why I label this project as the Dark horse.
If Lukso were to garner half of their competitors market cap, pending they release their schedule tokens at main net launch, bringing the total to 35 million tokens they would reach these prices respectively.
Half of market cap
Polkadot- $10 billion (275$ per coin)
Cardano- $15 billion (425$ per coin)
Ethereum- $170 billion (4850$ per coin)
even at 1/10 or 1/3 of the Ethereum market cap would be roughly
$35 billioin (985$ per coin) or $100 billion (2950$ per coin)
Now these are just potential estimates based on my opinion of how much market cap we may see in this project. I am not a licensed financial advisor and I’m only providing research and opinion.
*not financial advice*
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conclusion
Now that you have been pink pilled, would you say it’s wise to bet against this project?
would you say its truly a risk?
I don’t know it’s up to you the reader to DYOR
Lukso could be the next Ethereum for those lucky enough to stumble upon it or wise enough to understand it’s fundamentals.
Stay tuned for the next part of this series!
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