Satoshi (@DonkeyInvestor) on getquin

Cryptothesis: the technical superiority of your altcoins is worthless.

English: https://app.getquin.com/activity/AiOqZoDsUy

Many altcoin proponents hold altcoins because they are convinced of their technical superiority over Bitcoin and Ethereum. Lower power consumption, more transactions per second, prettier logo, ... And they are right about that too! But with DLT (distributed ledger technology, the umbrella term for technologies like blockchain or DAGs), technical superiority only matters at a very late stage of development. And we are still years away from this point of development.

Why is that?

Because any distributed technology becomes more efficient when you centralize it. I can also run any DLT in my own data center. Communication between nodes becomes more efficient that way, I have complete control over my system, and I can apply updates as I want. In this way, I am always superior to the decentralized variant. At the same time, in my centralized variant of Cardano, Cosmos, Polkadot, ... everything that the decentralized variant can do.

If centralized versions are technically more efficient than decentralized variants, why do DLTs exist at all?

The advantage of DLTs lies in their decentralized nature and the associated security against failure and manipulation. Therein lies the value of decentralized blockchains & Co. Not in any transactions per second that are miles behind those of Visa and Mastercard and can be executed around the clock.

As long as a DLT is not decentralized, but controlled by a few players (which is the case with pretty much all DLTs), it is nothing more than an inefficient piece of software whose price is fueled by wild speculation about the future. Only when an altcoin is truly decentralized does its technical superiority over other DLTs become relevant.

This is the reason why I personally believe that nothing will go past Bitcoin and Ethereum in the next few years either, and that only a few coins will remain from today's altcoin proliferation in a few years. Which ones are pure speculation.

Sources don't exist, all springs from my sick donkey brain and has been simplified and shortened for the average attention span (hey, a squirrel!) of the GetQuin community. No investment advice and now please shred my thesis.

#bitcoin
#altcoin
#learn
#esel
#crypto

Europoor@Europoor

2Yr

Oh a squirrel <3 It's really like that. Apart from BTC and ETH, hardly anything is decentralized or can simply do nothing. ETH may have its weaknesses, but at least the price is not only generated from promises, as with ADA.

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Lucrash@KapriolenCapital

More and more abstraction layers will emerge. It was no different with the Internet. I see many altcoins as a fintech variant of the crypto universe that could shine in one of these layers. I see a split among multiple players. But overall am very excited about future developments with ZK rollups,sharding, etc.