TL;DR

• BTC & ETH is up

• BTC underperformed ETH this week 

• Bitcoin dominance is up

• The hot coin we look at this week is JKL

Latest & Greatest 📰

Before we dive into both current and new airdrops, make sure to check the latest and greatest news across crypto:

BTC & ETH Market Update 📈

Crypto is up this week, with BTC being up 10.2% and ETH up 6.8%:

Bitcoin dominance has increased this week, rising from 51.1% to a peak of 52.6%, and ending at 52.3%. Typically, as Bitcoin's price rises, investors begin moving capital into Ethereum and other altcoins, which are riskier assets. This shift causes Bitcoin's dominance to decrease, a trend observed over the past few weeks.

It’s going to be interesting to see whether this trend will continue in the short term, as capital in crypto tends to flow initially to BTC and then further out on the risk-curve, starting with altcoins like ETH and then into mid- or low-cap coins.

The Bitcoin halving just passed. If history is any guide, we can expect BTC dominance to continue rising before investors start seeking higher returns in altcoins. This typically starts with ETH, and then on to mid- and low cap coins. Other coins being moved into are typically “ETH killers” like SOL, AVAX and other other L1s. Yet ETH is still the king amongst altcoins, as price action this week also shows.

With BTC dominance increasing and the ETH price increasing less than BTC, the BTC/ETH ratio is trending upwards to 21.66 ETH per BTC, underlining that BTC continues to be king in crypto, but alts like ETH are gaining momentum.

For general news and updates on Bitcoin and Ethereum, make sure to subscribe to our free weekly newsletter.

Hot Coin: JKL 🔥

In this week’s newsletter we dive into Jackal Protocol’s token with the ticker: $JKL.

The price action and volume is has been growing consistently, and doesn’t seem to stop any time soon:

What is the project about?

There are many decentralized file storage protocols on Ethereum, but Jackal is the only one available on the Cosmos ecosystem, with all the benefits coming from using the Cosmos tech stack.

DeStorage is a critical piece of puzzle to Decentralized AI (DeAI), and as new AI application are released, we believe this narrative will be growing faster than many other segment of the market. Important criteria would be fast access and transfer speed of large amount of data, which often get categorized as Hot storage. Filecoin, and AWS Glacier would qualify more as Cold storage to store data long term but with slower transfer speed.

Jackal cost of storage is currently $8/month for 1T, so unfortunately that's pretty high compared to Filecoin, but that's for Hot storage instead of Cold storage. Compared to other hot storage solution on AWS that cost about $35 per month per 1T.

As well, when it comes to AI, model reproducibility and versioning is ideal in order to be able to compare. Jackal's bucket storage makes this possible.

Currently it has a $32M marketcap in circulation with a fully diluted market cap of $62M. This is the first bull cycle for Jackal, and Filecoin was able to reach $462B FDV at the peak of it's first bull run in 2021 and $115B in circulation, so Jackal as plenty of room to grow and is better aligned with the AI narrative.

Why is the project exciting now?

There are three main reasons why we feature this project in this week’s newsletter:

• Addressable market

• Better resource utilisation

• Better tech

Addressable Market

Cloud technology is ubiquitous, allowing us to access the majority of internet-connected services nowadays. The importance of Cloud technology cannot be underestimated. It digitalizes the user experience and the way services are provided by eliminating the “need for users to have product-specific hardware so that providers can deliver the same product through the internet”.

To give a perspective of the Cloud Cartel, as of Q4 2022 Amazon AWS, Microsoft Azure, and Google Cloud collectively hold about 65% of the market.

AND, the cloud market is only getting bigger, expecting a CAGR of 13% from 2023 to 2030, especially for Software as a Service.

Thus, it’s challenging for centralized providers to compete with these giants.

Better resource utilisation

According to the network itself, as the world’s first decentralized cloud computing marketplace, Jackal leverages 85% of underutilized cloud capacity in 8.4 million data centers. Jackal enables anyone to buy and sell cloud computing.

Furthermore, the State of Cloud report published by Flexera estimates the current annual public cloud waste at 28%: roughly one-third of cloud capacity is underutilized (read: wasted).

This better utilisation rate converts into lower prices to customers using Jackal to store their data.

Better tech

No user of Dropbox, Box.net or Google Drive wants to be susceptible to the uptime issues of a centralized entity. Remember in 2021 when an AWS outage halted Dropbox activity? On Jackal, users can sleep well knowing that data is backed up in a decentralised data center.

Unique Features of the Jackal Protocol

Decentralization and Security

Jackal Protocol employs a decentralized approach to data storage, minimizing the risk of system-wide failures and ensuring data safety. The platform includes backup features and automatic recovery mechanisms to protect against node compromises.

Immutable and Verifiable

Utilizing blockchain technology, Jackal Protocol ensures data immutability. Once data is stored on the platform, it cannot be tampered with or altered, guaranteeing high data integrity.

Programmable Privacy

The protocol offers advanced privacy and data control. Through sophisticated encryption techniques, only authorized parties can access stored data, making it an optimal solution for maintaining privacy in a multi-risk cloud environment.

Interactivity

Built on the Cosmos SDK and utilizing the Inter-Blockchain Communication (IBC) protocol, Jackal Protocol can seamlessly interact with various networks, enhancing flexibility and interaction capabilities for users.

Economic Benefits

The protocol incentivizes JKL token holders to participate actively in the network. Storage service providers earn tokens by offering their storage space, while validators earn tokens for maintaining network security.

Governance Participation

JKL holders can engage in protocol governance, allowing them to vote on text, software, expenses, and other governance proposals.

JKL Token Information

• Token Name: Jackal Protocol

• Symbol: JKL

• Blockchain: Cosmos

• Max Supply: 400,000,000 JKL

• Total Supply: 114,308,152 JKL

• Distributed Supply (Self-reported): 43,893,788 JKL

JKL Token Utility

• Transaction Processing: Users pay fees (gas) in JKL tokens to process transactions on the network.

• Storage Space Access: JKL tokens are required to access data storage space on the network.

• Network Security: Operating on the Cosmos L1 Proof-of-Stake blockchain, JKL tokens can be delegated to validators to secure the network and earn rewards.

• Governance: Staking JKL tokens allows users to participate in on-chain governance within the Jackal Protocol, enabling them to vote on proposals related to text, software, expenses, and other governance matters.

• Incentives: JKL tokens incentivize participation across various network roles. Storage service providers earn tokens for offering storage space, and validators earn tokens for maintaining network security.

How to Stake JKL Tokens

If you own JKL tokens, you can stake or delegate them to help secure the Jackal Protocol. In return, you'll earn rewards and gain voting rights on the protocol’s future. You can stake your tokens through your wallet provider, the Jackal Cloud Dashboard, or certain block explorers.

Steps to Stake JKL Tokens:

1. Choose a Platform: Access your wallet provider, the Jackal Cloud Dashboard, or a supported block explorer.

2. Select a Validator: Research and choose trusted validators to delegate your tokens. It's recommended to spread your tokens across multiple validators to minimize risk.

3. Delegate Tokens: Follow the platform’s instructions to delegate your JKL tokens to the chosen validators.

4. Earn Rewards: In exchange for securing the network, you'll receive staking rewards.

5. Participate in Governance: Staked tokens allow you to vote on various governance proposals affecting the protocol's future.

Additional Information

• Risks: Staking is not risk-free. Learn about the risks and engage in sustainable staking practices.

• Validator Selection: Research and select reliable validators. Delegating to multiple validators can help mitigate risk.

• Slashing Penalties:

  • 0.01% Slashing: Occurs if the validator you delegate to is offline for an extended period.

  • 5% Slashing: Happens if the validator signs two different blocks at the same block height.

By staking JKL tokens responsibly, you can contribute to the security and governance of the Jackal Protocol while earning rewards.

What Sets Jackal Apart?

Jackal stands out in several aspects, offering a range of distinctive features. Here’s what makes it unique:

1. Self-Custody: Users have full control over their data, ensuring self-custody and enhancing privacy.

2. On-Chain Permission: Permissions for accessing and managing data are enforced on-chain, providing transparency and security.

3. Programmable Privacy: Advanced privacy features allow for customizable privacy settings, ensuring data confidentiality.

4. Peer-to-Peer File Transfer: Facilitates direct file transfers between users, promoting decentralized data sharing.

5. IBC/GMP Cross-Chain Functionality: Interoperability with other blockchains through the Inter-Blockchain Communication (IBC) protocol and Generic Message Passing (GMP), enabling seamless data exchange.

6. Hot-Storage: Instant access to frequently accessed data through hot-storage solutions, optimizing performance.

7. Modular Application-Specific Blockchain: Tailored blockchain solutions for specific applications, enhancing flexibility and scalability.

8. Proof of Stake Blockchain: Utilization of a Proof of Stake (PoS) consensus mechanism for network security and efficiency.

9. Protocol Managed Redundancy: Built-in redundancy management within the protocol ensures data reliability and resilience against failures.

10. Protocol Managed Storage Deals: Automated management of storage deals, streamlining the process for users and ensuring efficient resource allocation.

Jackal encompasses a range of innovative features that collectively distinguish it as a leading storage network, offering enhanced security, privacy, interoperability, and efficiency.

Bottom Line

The Jackal Protocol (JKL) represents an ambitious endeavor to establish a next-generation data storage network within the Cosmos ecosystem. As the project undergoes refinement, crucial details like the development team, tokenomics, and operational roadmap remain undisclosed. Given this ongoing development and the inherent uncertainties, potential investors are advised to conduct thorough due diligence and exercise caution before considering any investment in the project.

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