My fellow retards,
Phonon’s gift to crypto: Impossible to measure.
Many projects in the crypto ecosystem try to give a benefit to themselves / their community. That’s logical for sure. Some projects out there provide tooling or other infrastructure to the broader community and other projects. Those are more rare, but very appreciated.
Still, the crypto ecosystem has yet to realize the gift that the Phonon protocol has endowed to all L1 systems. Even if some random L1 never sends a single asset to a phonon card, it still gets this benefit…
To understand, follow the creation of a phonon from the bitcoin network:
User tell his phonon card to generate a private-public keypair.
User tells client to generate a valid bitcoin address from that keypair.
User now sends some bitcoin he has to the public address from that keypair.
A new UTXO forms on the bitcoin network, and is only able to be moved (signed) by the private key that is now locked as a phonon on your phonon card.
That phonon-mounted private key can be moved an infinite number of times between phonon cards before it is destroyed.
When a user tells his phonon card to destroy that phonon, the private key is ejected. Now the user can make a signature on that UTXO and broadcast it to the network.
What does that bitcoin network see? They see the creation and destruction of a UTXO, just like any other transaction. They have ZERO information on that UTXO beyond the time it was created and the time it was spent. This means that EVERY transaction on bitcoin could have had its private key in a phonon card at some point. It means that EVERY UTXO can actually have its ownership modified and transferred across the phonon network. It means that everyone who uses bitcoin has plausible deniability that they never received payment from the incoming transaction, and instead they received that private key 10, 50, or 10000 hops later as it made its way through the phonon network.
It means that every single L1 network now can be delinked. It means that globohomo tracking companies now cannot be sure in ANY of their linking.
This is powerful stuff. This doesn’t even begin to touch on any of the applications or systems built on top of Phonon. The MERE EXISTENCE of phonon is a huge benefit to every other network.
The PHONON DAO Discord is where it’s all going down.
Same prediction; $1b marketcap by Q2 2022, $12b by EOY.