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Concepts that benefit from blockchain
| geriatric church | 09/23/17 |
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Date: September 23rd, 2017 10:48 PM Author: geriatric church ICO investors looking for medium to long term holdings should consider a primary aspect of the fundamental value of a coin: Whether the underlying concept is something that benefits from being on a public blockchain. I found Vitalik Buterin's R3 article helpful in thinking about this. (http://www.r3cev.com/s/Ethereum_Paper-97k4.pdf)
Key factors to look at include: * How important are the needs for traits in which blockchains can shine: Reliability, security, auditability, and decentralization
* Is the field one that some countries attempt to censor?
* How much value is added by anyone being able to verify that a transaction occurred, and the order in which it occurred?
* Whether the market is one involving participants who lack trust in each other
* Would the concept be better off if it avoided a drawback of blockchains? (A need for more privacy or to scale more easily than current blockchain tech can allow.)
* Is an ethereum style smart contract needed?
Caveats: A concept may make different sense on a private blockchain. If the institutional participants are less than a couple of dozen, need to scale ASAP, or if they are highly regulated, private blockchains can have more value. Also, even if a concept fits on a blockchain, the coin itself might not always have value. Ask whether the platform would be able to function without the coins.
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