One of the most important things to consider about Cryptocurrency, is that it’s not about Bitcoin anymore. And to that end, the cryptocurrency market is extremely diverse.
That’s not to say that Bitcoin is dead or anything akin to that, but rather, it’s accurate to say that Cryptocurrency as a whole has become a microcosm of larger economies.
It’s not even accurate to use the term Cryptocurrency to refer to the entire space, as many new tokens are more focused on utility than peer-to-peer transferability.
All digital coins share a common heritage with bitcoins, and generally speaking, all coins aim to disrupt some centralized established industry – how they do that, is largely dependent upon what so-called sector they’re operating in. So, in the name of becoming educated about what kinds of cryptocurrencies are out there, and more specifically, about what sectors and sub-sectors they operate in, let’s explore the many captivating and compelling use cases of this blossoming technology.
Ideally, once you finish the series of videos, you’ll have a greater understanding of the many possibilities.
There’s simply too many applications and use cases for Cryptocurrencies!… Let’s get into the different sectors, and sub-sectors of Crypto, and hopefully learn a few things…
So, the first sector to talk about, is Digital cash – which is synonymous with Cryptocurrency in its purest sense.
Digital cash simply put, is money that can be transferred electronically from one party to another during a transaction.
Bitcoin, Litecoin and Dogecoin, are all great examples of Digital cash.
There’s two sub sectors of Digital cash.
The first are;
Stable coins: These are coins that are backed by an asset, and meant to be pegged against a stable currency such as the US dollar.
The most well-known is Tether, or USDT.
While Bitcoin may have shown us that a payment system can exist in a decentralized peer-to-peer environment; which was certainly groundbreaking,… It was the advent of Etherium that really moved the whole space forward, and closer to mainstream acceptance and adoption.
Etherium assured in the era of the second-generation blockchain as people saw the true potential of DAPs and smart contracts.
For those unaware, smart contracts were a huge leap forward over what bitcoin introduced us to. Because smart contracts helped you exchange not only money but property shares, or really anything of value.
Importantly, it does so in a transparent, conflict-free way – while avoiding the services and fees of a middleman. Think of smart contracts like an ATM or vending machine. If you wanted to arrange a contract with someone for business or ownership or whatever, you need a lawyer or notary to organize everything and officiate it, and you’d have to pay them. But with smart contracts, you go up to that ATM or vending machine, deposit your cryptocurrency, and in return your contract is automatically given to you.
What’s cool is that, the smart contract automatically has the rules, penalties and other legalese; all defined in the code, and the terms are automatically enforced – because code is law.
As an example, you book a flight, and you expect to depart at a certain time because otherwise you might miss your connecting flight at the next airport.
Well, if your flight is delayed,…. Since your airline ticket is actually a smart contract, you are automatically reimbursed for the delay or missed flight; without having to talk to anyone! That’s the future!
When it comes to the complicated technology of Blockchain they can utilize the benefits of a distributed ledger without having to explicitly code it this allows them to focus on what they can do with the tech instead leading to the explosion of cryptid projects we’ve seen over the last year other good examples of these platforms are neo Cardno and eos the thing with these platforms is that user adoption is key over the long term, only the projects that can attract a critical number of users will survive. People won’t want to launch an ICO on a platform that has no users, but want to launch to the platform where they can get the most exposure.
With a few exceptions, the vast majority of blockchain platforms don’t offer clear significant benefits against the established ones, which in turn, will likely result in a large number of zombie platforms, and I’m hesitant to invest in anything outside the top 50 in this sector.
For that reason, now, there’s one sub sector for this platform sector and it’s one that I’m pretty excited about that sub sector is interoperability platforms which aim to connect the platform so that value and information move seamlessly between them.
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