What is the Bittercoin: is it the true blockchain believers vs. the trough of disillusionment?- Part 2

Continuing From The Previous Post

There is a lot to be defined when you consider blockchain enthusiasts. This is why it is competing with others in the crypto world. More so the Bitcoin community is being viewed upon by the investors as a secure and reliable mode of investment. This helps the community where many numbers of cryptocurrencies are being mined almost every day. Recently it is found that the types of digital money vary according to the number of them being mined.  

What Is Known As Permissionless Equity

Coming as an especially interesting one, it is in the early cryptocurrency era scoring of Bitcoin-clone altcoins hitting the market thereby ranging from surrealist Dogecoin to the interesting Litecoin to the pointless and useless. Therefore the prevalence of the latter led to these crapcoins being written off as worthless and irrelevant. 

Thereby of late, however, there seem to be many cryptocurrency projects funded by Initial Coin Offerings i.e. the creation of an altcoin as an initial tranche of which are sold by the founders for Bitcoin to fund future development therefore unlike the crapcoins these altcoins are not purposeless as the project succeeds the altcoin in question will surely grow in value just like stock in the successful company where they are in practice equity.

This comes as an interesting crowdfunding alternative to traditional equity investment but the question here is aren’t there a lot of laws and regulations surrounding equity sales? Then you’re sure not wrong as the FAA claims jurisdiction over every device that flies seeming very likely that the SEC claims jurisdiction over these de facto equity sales, and also frown on their permissionless unregulated nature. This is why although this might lead to jurisdiction shopping and new cryptocurrency projects fleeing the USA for some ICO friendly nation.

This is the scenario where Numerai comes as a fascinating new project using cryptocurrency rewarding data scientists for successful stock trading algorithm structured the distributing of its numeraire tokens so they do grow in value as Numerai was a whole success but they are not a source of crowdfunding income. 

What Are The Private Blockchains

It was found later on that despite the retreat of R3, there are any number of financial companies still building and/or moving toward private blockchain as what all the above items that have in common are something that they’re permissionless along with any on that is participating in an Ethereum contract becoming a Bitcoin miner buying into an ICO, with many organizations and consortiums wanting to maintain more control and/or worry more about legal oversight

In this context, you may ask what the use of private blockchain is when people can just use that well known private data storage solution, the database. It is perhaps a certain amount of skepticism that is warranted. While blockchain is at its core just a data model supported by a consensus network, you are sure not to hear people talking about B-tree companies.

Subsequently, a database doesn’t make it easy for a group of equal counterparties thereby maintaining and performing transactions across a single store of verifiable data with no single one of the controls. Thereby the database doesn’t let you make your tokens into programmable money with both of these things saving enterprises substantial amounts of time and money. 

While this is where both are eminently possible with a private blockchain as considering Monax building open source tools for business ecosystems recently joined both the Enterprise Ethereum Alliance and the Hyperledger Enterprise blockchain consortium contributing its Ethereum virtual machine with permissioned programmable money which isn’t as exciting as the permissionless equivalent which it’s not without its uses. 

So What Is Next?

Leaving out a lot of other initiatives similar to Sia’s blockchain orchestrated file storage, there comes Factom’s irrevocable storage data. But hopefully, this is where you get the idea. There are quite a lot of interesting as well as useful stuff continuing to happen in the cryptocurrency space. However, none of it seems to threaten to become the world-conquering tsunami whereas the change machine on the scale of the internet is itself what was dreamily suggested in the early days of cryptocurrencies whereas at least there is not anytime soon. So this is where the blockchain-backed technology is set to rise to new heights. Including all this info you can ascertain whether you need to invest in blockchain technology or not.