Ethereum Merge, Ramp Flex
Ethereum Merge
The Ethereum ‘Merge’ is scheduled for September. Ethereum will transition to a proof-of-stake system, while Bitcoin will be the remaining holdout on the energy-guzzling proof-of-work system. Following up on my last article, one of the more interesting implications of this revolves around sanctions.
Some Bitcoin miners are located in US jurisdictions, while others chase cheap energy into parts of the world like Kazakhstan.
Proof-of-stake moves the mining from a physical location to wherever the most cryptocurrency is owned and held.
Among other major holders will be cryptocurrency exchanges like Coinbase, who are regulated under various US jurisdictions.
These entities will potentially play a large role in the mining process of Ethereum moving forward, which includes validating transactions. Does processing transactions for a blockchain itself constitute a sanctions violation if the transaction involves a sanctioned entity? Potentially! Will the major exchanges (who want to remain in OFAC's good graces) be able to resist? Who knows!
More to come in the coming weeks.
Ramp Flex
As someone who has attempted to build something like this product in a past life, Bravo. A couple of things that are masterful about this.
The financing makes the real money, but they started with solving the major pain of automating invoice payments. Adding on financing is a natural move.
They raise a valid issue - credit card payments offer a float of 30 days, but most B2B vendors won’t accept them. ACH and wires don’t offer any flexibility.
Ramp has substantial data about your financial operations, and thus your likelihood of repayment. I presume they’ll be quite sharp about spotting default risk.
I expect they’ll offer more financing products like this down the line. Quite brilliant.