Difference between protocol, coin and token
- Protocol: The native first layer of technology a.k.a the blockchain
- Coin: Value that’s transferred over the blockchain
- token: Decentralized application on top of the blockchain.
From Ethereum to many others
When ethereum got popular and it was all about icos , dapps and smart contracts we thought this was the future, however ethereum wasn’t as good as we thought it was inparticular with its scalability problems and the fact there is no option to stake your coins. Because of that reason many others such as Neo, Qtum, Cardano and Waves have considered going up against Ethereum to build a better, faster and stronger baseline for real-world use. Cause in the end that’s whats going to bring us closer to real-world implementation and adoption.
Development of innovation and adoption
Technology moves in two waves. Innovation 0-1 and 1-n which is adoption. In order to really adopt this new blockchain technology it’s important that everybody is able to use it without thinking and that the bad flaws are minimized. You must remember that it’s still the far majority that doesn’t know anything about how Bitcoin works and it takes some time for everybody to understand that. Throwing a bunch of features at them won’t help them understand what it means. If they don’t understand a simple blockchain how will they understand what a token is and dapps are. First its important to focus on a user-friendly and well-developed blockchain that could be used. I must admit that the development of smartcontracts is really important aswell. I am a great fan of Neo and Waves.
Buying protocols as an investment
With Bitcoin showing strenght at the moment and altcoins on a low fire it might not be a dumb idea to dollar cost average yourself in a position of some altcoins you have wanted for some time. I myself invest in coins such as Neo and Waves in order to accumulate coins for dividend. that way its more lucrative and am i comfortable holding these coins. Protocols with strong fundamentals such as Waves decentralized platform are great for longterm adoption. Many people don't see it yet but the demand for privacy is huge. Yet we all still trade and operate within centralized exchanges such as Binance, Bittrex and Bitmex.
With protocols you look at the technology. with tokens you look at applications.
