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Working Hypotheses

The Plenny experiment holds the working hypothesis (H) that the shift from centralized finance to decentralized finance (DeFi), where the traditional middleman is replaced with blockchain technology, cryptographic token, and smart contracts, is a key factor to advance financial services on a technical, economic, and legal basis. Hypotheses are made in the context of the experiment as follows:

  • H1: The artifact (i.e. Plenny) supports the further decentralization and growth of the Bitcoin Lightning Network.
  • H2: The cross-chain blockchain technology provided by the artifact with incentives over the Ethereum ecosystem supplements the fee income of Lightning Nodes and enables the active provision and expansion of lightning services.
  • H3: Using the lightning services of the artifact and its components (i.e. capacity market and oracle network via Ethereum) enables participants to improve connectivity as well as liquidity allocation for Lightning Nodes as long as transaction costs on Layer 2 blockchains remain low.
  • H4: The technological capabilities to log lightning payment channels combined with token rewards for providing channel capacity constitute fungible fundamentals for a non-financial digital economy of a decentralized application because the provision of channel capacity is a technical service but not a financial service.
  • H5: Hybrid tokens (“utility” and “payment” tokens) used in the regulationfree sector of the P2P and P2C paradigm can generate active income (e.g. by providing services in a non-financial digital economy) as high as passive income generated by competing asset tokens (e.g. interest and dividends in a decentralized financial economy).