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Blockchain vs Cryptos

09 June 2018  |   11577

This week was quite sad for all crypto-enthusiasts since statistics show that interest in Bitcoin is falling with its value. Since last October, the frequency of searches on Bitcoin and cryptos has decreased by 80%.

And now, for almost half a year, Bitcoin has  not reached any records.Those, who got into cryptos at the end of the previous year, when its price rose to 20 thousand dollars, are certainly disappointed. Investors do not lose hope for the beginning of a new rally in July, but the longer this "stagnation" lasts, the "clumsier" Bitcoin becomes, losing its attractiveness. Well, currently it's possible to describe this using a modern slang - "the hype has passed". Will the forecasts of financial institutions come true? After all, in the world of classical banking and investment funds,it is said that "blockchain is the future, cryptos will be a thing of the past". Let's look at the issue through Ripple, which was again in the spotlights this week.

Brad Garlinghouse, the CEO of Ripple, has stated that dozens of banks will use XRP by the end of 2019 as a liquidity tool. Money transfers are made with 3 platforms: xCurrent for banks, xRapid for money transfer operators and xVia for corporate transfers - all of them use Ripple’s crypto - XRP.  Garlinghouse has also noted, that XRP transactions are much faster and cheaper than Bitcoin, and it’s senseless to consider Bitcoin and Ethereum as competitors, since Ripple also has a clear purpose to solve financial and transfer problems. But if so, why does the Ripple Foundation split Ripple as a set of technologies and a development team, and XRP as a crypto? It might be due to some Ripple representatives who don’t believe in the possibility to raise the crypto’s rate, at least to the historic maximum. This company is successfully developing technologically and in terms of creating cooperation with other organizations, but currently it does not correlate with the course of their crypto. But the fact is that Ripple's technological platforms use XRPs, which justifies the demand for them.

The US SEC thinks that XRP is not just a crypto. They believe that it is similar to a share in a business. This understanding of coins in general is not alien to the crypto world, since crypto owners can often rely on various airdrops to receive new tokens of different types.  Moreover,  as in the case with EOS, the amount of coins, owned by an investor, directly affects their ability to select people to control nodes in the new EOS network, launched on June 2nd. Similarly, on June 25th, on "TRON’s  Independence Day", after the tokens transition from the Ethereum network is completed, the election of the TRON governing body will be conducted by voting among crypto owners. Thus, both EOS and TRON demonstrate that their owners receive, in fact, the same rights as those, held by shareholders of traditional companies. Almost half of all EOS tokens belong to only 10 wallets. It can be suggested, that these wallet owners can strongly influence the market, especially in the case of collusion. So, what kind of decentralization can be there?  Bitfinex, meanwhile,  is introducing futures contracts for EOS trading. The demand for EOS tokens is still growing.

Nowadays,  more and more business giants are announcing the launch of blockchain projects prototypes. Samsung continues its experiments under its Samsung SDS subsidiary, and this week Fujitsu, Baidu and Mastercard have joined this list. Each company is going to use blockchain in its own way. Companies, that are no stranger to the crypto industry, for example Huobi, also set their tests.  

Nevertheless, blockchain is still suspicious, but it is also very important that its role is denied not only by those far from this technology, but also by those inside it. Ted Livingston, the founder of the Kik project, having conducted a successful ICO and attracted 1 hundred million dollars, has come to the conclusion, that "almost no one should turn to this technology." He said it during Tech North, a technology conference, where he also noted, that "if you do not want to build a project with the world’s most used crypto, blockchain is unlikely to have much value for you." He added that to finance projects, you need money, which you can get, only if your crypto goes up. In his criticism Livingston came to the conclusion, that both blockchain and cryptos are necessary.

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