What a time to be in crypto currencies. For those who have recently entered the crypto space are probably like what the heck is going on here?
What's happening before our very eyes is the free market fight for which crypto currencies will be mass adopted. Yes, there obvious manipulation but markets will ultimately be the deciding force in which crypto currencies will be mass adopted.
It has been my belief for a very long time now that we'll see many crypto currencies and even more tokens exist than what consensus has been thinking. Probably 1000's of cryptos and millions of tokens.
So where does this leave us? What to look for in the race to become trillion dollar protocol currencies?
#1 Governance
Built in governance protocol or at least some point will implement it. Great leadership is key for protocol development. This allows smooth upgrades and rapid development leap frogging competitors later.
#2 Self-funding
On-chain self funding mechanics. One example: Budget is self-funded via the block rewards. Instead of paying 100% of block rewards to miners or validators a portion is set back for development. This one of the biggest advantages longterm because this allows for the protocol to self evolve/self fund key features to gain mass adoption.
#3 Build The Use Cases
A currency or product that revolves around pure speculation and does not focus on core use cases will ultimately fail. Best protocols/currencies focus on building an eco-system around them. Must have use cases. Is the currency back by anything besides pure speculation? If the answer is no the other protocols who have core use cases "utility" will gain market share.
#4 User Friendly/User Experience/Developer friendly
Is the app user friendly? Does it focus on user needs? Are developers listening to their clients needs? If the answer is no to any of these questions, the app will never been used in mainstream. Only for a niche geek community? Over time ver likely to eaten by a more user friendly protocol. Speaking of being ease of use for consumers, its just as important protocol is developer friendly too. If you can't get developers to build on it you have a big problem!
#5 Community behind it (probably most important trait of all)
In crypto, community is everything. With the nature of crypto being decentralized community plays one of the most important roles to success. Think of it like an organization but instead of a central point with few people in control, its more like a bee hive working for a common goal. Are those bees motives alined with the common good of the protocol? In other words does the protocol reward the best actors in the system? Miners only play one role. There's much more under the hood. Start thinking bigger, much bigger.
#6 Mass Scaling
This is a must. Does the protocol have a clear and quick path to mass scaling. The ones who do will gain major competitive advantages in network effects. This is also a trait under being user friendly but its such a big one it needs a category of this own.
Well, there's a few of my thoughts on the Evolution of Blockchains and some key traits to look for. The road to crypto mass adoption is here. Which protocols/dapps do you believe will meet the needs of the people and that will be adopted into our daily lives and why?
Nicely laid out key criteria for success! I completely agree and am hard pressed to find something to add. Upvoted and will resteem later today or tomorrow. Cheers.
Well articulated. I think a lot of the same things, but probably couldn't have said it the way you did.
Thankyou. I know in these times of craziness and in the noise of the the madness crypto can be over whelming to everyone not only newbies. I hope this belief article helps people take a step back to look at what's really going on under the hood of crypto. This is truly a world changing space but in madness we must look entire forest not just at one tree.
Currently my favorite is steem blockchain because it's blessing me daily.
Recently I read and wrotrle about directed acyclic graph
and how it could replace blockchain in the future
Steem is only one that requires no direct financial investment to earn crypto. Only one has to invest time.
Smartcash is earnabble without direct capital, via its outreach programs
I am very wary of such projects claiming to "replace" blockchain. Blockchain is such a massive break through in computer science and economics, its a giant leap forward. IOTA being the one I most concerned about. What benefit would one gain over a fast, scalable, low cost, 100% consensus blockchain? Ethereum is launching a project called uRaiden in next few weeks that can do near free low cost transaction off chain for IOT and other micro payment use cases.
I am open to other concepts besides blockchain but unless the benefits to using something else are just so massive it will most likely be hard to gain traction. Blockchain will scale and be incredibly low cost in future. Its a proven secure consensus model. Putting billions and eventually trillions online this is by far moat important to have best security proven standards.
Your article has EOS written all over it! They are working on all of those main points and so many more, with a development team 5-10x bigger than most of the other coins. Plus I feel they are doing this with no competition doing the same, on the same level.
Oh I know. I am a big fan of EOS and hodler. EOS will have some key advantages right out of the box. Biggest one is scalability. As far I know 1 million+ transactions a sec so the dapp looks and feels just like a centralized app but is not. That's much better than Visa can do! Will need it if many main stream apps integrate with blockchain in future.
Nice post, sir @hedge-x do you working on crypto? thanks for sharing a nice post
I am Investor and Crypto Analyst.
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