When it comes to cryptocurrency, people often get lost when trying to figure out how it will compare monetary finical systems. Let’s face it, digital currency is new to a lot of people. When people think about money, they often think about the Dollar, the Euro, or the Pound. It is hard for people to Image a world with thousands of different currencies inside segmented locations. I am going to try to tackle this for you and explain my vision of how cryptocurrency will be exchanged. This is quite a complex topic and it probably butcher it, but here goes nothing.
In the digital space, there are countless developers offering solutions to problems. Each developer aims at tackling a specific industry, as others try to implement a framework that can become integrated into other platforms. The majority of these applications and services run off the Ethereum network, while others have created their own digital monetary system (NEO, METAL). Each platform offers company owners and customers tokens that they can exchange for services or promotions. This is a very basic understanding of the complex systems that run off the revolutionary blockchain technology.
Each platform will offer a exchange rate for their tokens with in their platform. Think of tokens like reward points you earn through a grocery store or a gas station. The major difference tokens have over loyalty points is that tokens can be purchased within the platform and exchanged through the platform or exchanged outside the application into another currency. You will have to view this process as if Wal-Mart, Target, and Best Buy all have their own currency. The currency can buy things inside the store they represent at the price point set by the store. If the customer does not want to spend the currency in that store, they can exchange the currency into the type of currency that is accepted at another store. The value may differ from one store to another and will be much different when compared to the way we use modern currencies.
The entire idea is that the digital currency of the platform is to price to the overall ownership of the currency. If the store has a token cap of 1,000,000,000 tokens. Depending on the ownership percentage of the token will depend on the buying power it has at the store. The concept of this system is that is creates a very competitive atmosphere to provide the best services to their customers. Again, this is a simplistic approach to a very complex topic. The tokens go a lot further then being limited to retail goods and merchandise.
The concept of digital currency is going to completely revolutionize the way we think about the monetary system. Of course, there will be a lot of obstacles that we must overcome in order to adopt the technology into our existing currency system. I would like to point out that when computers first came out, they had to go through multiple development changes to be able to fit into the business world.
I don’t know about you guys, but I am excited to see what the future has to offer. When I think of blockchain technology and the rise of Initial Coin Offering’s (ICO) reminds me of the DOT Com race in the early stages of the internet. Let me know what you all think. Is there a better way to simplify this technology to people who are new? How do you see blockchain disrupting our current finical system.
