Those who advocate for specific layer 1 platforms tend to miss the "next big revolution". Here is where we see tribalism taking a toll among the participants.
Bitcoin was revolutionary in that is Satoshi Nakamoto solved the double-spend problem without a centralized entity. That was a remarkable breakthrough.
However, for all the touting of Bitcoin, it does not rival the utility of Ethereum. Smart contract technology was completely overlooked by the maxis.
Of course, ETH lovers feel victim to the same thing since the need for cheap transaction fees was overlooked. This is where the likes of Polygon and Solana entered.
There is no way to forecast how all of this will work out in the long run. However, one thing that is imperative is to understand what makes cryptocurrency so special.
Unfortunately, many believe in mooning, cryptography, and censorship resistance. While these are components, it misses the major transformation.
What Makes Cryptocurrency Powerful
Most focus upon the monetary aspect of cryptocurrency and blockchain. This includes the politicians and regulators. This is sad since we are dealing with something that is much bigger than just a speculative asset to bet upon.
Instead, we are dealing with a transitional shift at the fundamental level. This will spread across every aspect of the global economy.'
So what is it that makes cryptocurrency so powerful?
It stems from the fact that cryptocurrency alters how society structures the economy and distributes economic outputs.
Consider that for a minute.
We are completely change the essence of the economy. At the same time, value is being allocated in a manner much different than we are accustomed to.
Now that is revolutionary.
Yet is that what we is really taking place?
Economic Structure
At present, the predominant economic structure is the corporation. This is at the center of it all. Naturally, over the last 40 years, we saw the move towards mega-corporations. The business model now favors those with size and resources.
We also have a system that ends up being exclusive. The value generated is falling into the hands of only a select few. Most do not own any assets.
Over time, as asset appreciation and return occur, the ones with resources end up growing their holdings. This means they are able to acquire even more. The average person is still stuck trying to pay the bills.
We are in the second century of debate on this topic and the attempts at a solution failed. It is likely because what people are trying to do goes against the very fabric of organic systems.
Cryptocurrency is a game changer in that economic output can be distributed in a much different manner. Instead of favoring corporate executives, hedge fund managers, and shareholders, the tokenization process provides a model that expands things greatly.
Here is the opportunity of a new economic paradigm that is completely novel.
The challenge is that we have not seem much of it in practice.
What Makes Hive So Powerful
Cryptocurrency, thus far, is a repeat of the existing system. I wrote in the past how Wall Street is hijacking cryptocurrency. We see the likes of Gary Gensler and Elizabeth Warren doing all they can to get crypto under the domain of the banks.
When we look at layer 1 systems, it is more of the same.
Let us look at the revolutionary idea again:
- cryptocurrency alters how society structures the economy and distributes economic outputs
Let us consider Bitcoin and Ethereum. These are the two big bananas so that is worthy of the focus.
How do people acquire these coins? While there is the mining process with Bitcoin, it is not something one is doing on their laptop. It requires specialized (and expensive) equipment to do this.
Outside of that, for the most part, acquisition is the same as other aspects of the financial system.
The short answer is most BTC and ETH is acquired through purchase. One takes a resource and swaps it for these coins. This holds true throughout most layer 1 projects.
There are some instances where staking will allow one to grow ones wallet. However, this is not much different than a dividend received by holding a stock. In other words, yield is given based upon the resources held.
Ultimately, we are looking at no change in distribution. It is exactly the same. Come to the party with some resources and you may enter.
Here is where Hive differs. It does have a new distribution model that stands out from the rest (except for Steem ironically).
One can show up and acquire layer 1 coins without having to buy in. This can be achieved through activity, utilizing the Proof-of-Brain (PoB) consensus mechanism. This is very powerful and in alignment with the revolutionary shift.
It is vital to remember that most of the global population have access to few resources. Investments are beyond the scope of the masses. Of the 7.5 billion people, at less than a quarter are in a position to even consider anything of this nature. At least 75% of the global population is exclude.
Once an ecosystem is monetized, it becomes an economy. Any economic activity generated will be reflected in the value of the coin. Framed this way, it is easy to see how Hive stands out.
With most other blockchains, the way coins end up in wallet is through purchase. This favors those with resources, like the existing financial system.
With Hive, we can see how people's social media activity can result in inflow of coins. This is powerful. No longer is the focus solely the developed world. Instead, this has appeal to those in developing countries.
It is why Hive is garnering attention in places such as Venezuela, Ghana, and Cuba. These are areas where most do not have resources to purchase cryptocurrency. They can, however, get involved with their efforts.
This is what makes Hive so powerful. It is in alignment with much larger trend. Most of this will take place at layer 2 yet Hive has it as the base layer.
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