For some reason, there seems to be a view by many that STEEM is an also-ran in the blockchain race and that it is really a nothing. According to this mindset, STEEM is a 1M account blockchain which will grow at a nice rate but it is not a true player in the blockchain world.
The mindset seems to be part of the blockchain/cryptocurrency media. Rarely do we see anything written about STEEM. To say this is an undiscovered asset is an understatement.
Many, including myself, are looking to Smart Media Tokens as the true game changer. Nevertheless, many I come across believe that STEEM will attract just the small blogs from Wordpress and maybe a few decent sized companies.
I do not believe this is the case. The STEEM blockchain is going to get some very big fish. There is little competition which means that anyone seeking some type of content/reward system is primed for this blockchain.
Over the weekend, I was researching a token to see what is going on when this idea was driven home.
The biggest advantage to STEEM is the blockchain itself. There are few who can match it. Zero transaction fees and up to 100K transactions per second.
Big projects are choosing inferiority.
Here is a prime example.
Did you ever hear of the Kin?
It is the token that the KIK team is creating for their instant messenger. This is one of the top 5 messengers in the world so I think it is a good case example of what is happening out there.
KIK wanted to create a token so they did what they all do, used ERC20. No surprise there. However, once they did that, they encountered a bit of a probelm. (Please bear with me as I try to take you through this mess).
Until now, Kin has operated as an ERC20 token on the Ethereum blockchain. Frustrated with the network’s susceptibility to network congestion, Kik said last year that it would transfer its tokens to Stellar, whose federated consensus model allows for faster, cheaper payments.
Red Flag #1:
"Frustrated with the network's susceptibility to network congestion..."
This is something we all know.
Red Flag #2:
"...allows for faster, cheaper payments."
Let us look at that.
Cheaper payments? Yes, they are cheaper on Stellar than Ethereum. How do they compare to no transaction costs?
Faster? Yes then Ethereum but what is really the speed?
Depending on hardware and network configurations, a conservative estimate of Stellar’s processing rate is 1000 operations per second.
https://www.stellar.org/how-it-works/stellar-basics/
1000 operations per second is a lot faster than Ethereum, yet is 1000 per second really impressive? Maybe my mathematical skills are off....how does that compare to 100K transactions per second?
To me, this is like moving up from a bicycle to a moped. It is an improvement yet still puts you in the slow lane.
But wait, it gets even better.
“While Ethereum provides liquidity for Kin holders, its load times and fees can’t support our needs for day-to-day consumer use. The addition of Stellar as a second blockchain will allow us to operate the Kin Ecosystem on a faster, more efficient foundation, with low transaction fees — which is necessary for us to achieve the speed and scalability that digital services in the ecosystem will require.”
https://www.ccn.com/kik-messenger-to-launch-kin-token-on-two-blockchains/
Did you get that? Due to the lack of liquidity in Stellar, the KIK team could not move their ERC20 based tokens over there. Hence, they are going to run dual blockchains, one on Ethereum and the other on Stellar.
With two blockchains, there needs to be two cryptocurrencies. Thus, going forward there will be the 10 trillion Kin1 on the Ethereum blockchain (yes you read that right Trillion with a T) while 900B Kin2 are in the Stellar blockchain.
In Phase 2 (described below), Kin2 will be merged with the original Kin1 to create one unified token over both networks. Only this future action will give value to Kin2. In Phase 1, they are completely separate and Kin2 does not have any value.
We will develop a mechanism to create a Kin1/Kin2 hybrid similar in concept to the hybrid transaction service we discuss in the Kin whitepaper.
We will force a 1:1 conversion ratio between Kin1 and Kin2 in order to ensure that Kin1 and Kin2 have one aligned value and that the total number Kin1+Kin2 tokens in circulation will never be more than 10 trillion.
Before launching the Kin1/Kin2 hybrid, we will lock 900 billion Kin1 tokens (held by Kik or the Kin Foundation) without swapping them to Kin2. This will account for the 900 billion Kin2 tokens created in Phase 1 and maintain the maximum 10 trillion Kin1+Kin2 tokens per the TDE. Then we launch the hybrid!
Anyone else tired just reading this?
Imagine the expense that went into creating a bi-directional system between two blockchains with different tokens that is going to require a hybrid model to mash them together and put the value on the Stellar blockchain.
Gadi Srebnik wrote the block post that the above quotes are from. Here is how he started the article....
Using a high-speed, high-scale blockchain is key to making Kin the ideal cryptocurrency for everyday use.
If 1,000 transactions per second is high-speed, what is 100K per second?
This example illustrates the potential of the STEEM blockchain with SMTs.
What if KIK had done this on STEEM instead of Ethereum?
They could create their 10T tokens in an ICO using SMT, the same as ETH. Once that was complete, there would be no need to move because of traffic issues. The liquidity problem is not a factor since they would not have been looking to go elsewhere. There is no need for the hybrid model of two tokens mashed together into one.
So what is the result?
KIK went through a lot of hassle, money, and time to be on two blockchains that are completely inferior to STEEM. Also, while the transactions costs are lower on Stellar, each transaction does cost. That does not exist on STEEM.
Obviously, KIK did not have much choice when they started this process since Ethereum is basically the only game in town with the ERC20. That will end the second SMTs are released.
We must not fall victim to the idea that only small players could be interested in what is being offered. KIK is a prime example of a large entity that chose inferior technology with a lot more headaches. Plus, joining the STEEM blockchain would provide instant liquidity on the 10T tokens, a secure wallet system with account retrieval, and a build-in content reward system.
How interested do you think KIK would have been if the SMT option was available when they started this process?
What do you think the likelihood that other entities will opt for STEEM using SMTs over this process?
When people throw out 100M+ users on the STEEM blockchain, that is not fantasy. KIK has 300M users as of 12/15/2016. Their monthly users are 15M as of 9/26/17.
https://expandedramblings.com/index.php/kik-messenger-stats/
Again, this is one entity that chose an inferior blockchain (two actually) yet has the potential to add 300M to the STEEM ecosystem instantly.
Since we missed that one, perhaps Viber would be interested. They have 900M users along with 240M monthly.
https://expandedramblings.com/index.php/viber-stats/
Do you see how the numbers can get really big, really fast? A couple outfits like that could provide STEEM with few hundred million users in a short period of time.
This is the potential of STEEM and SMTs. One big fish or a couple medium sized fish and the numbers get absolutely insane.
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It's a public relations problem, Ned and company suck balls at getting the word out about Steem, and everyone just thinks Steemit is a blogging website, not a Steem blockchain.
Until Ned discovers he has some balls and a mouth, the Steem blockchain will forever remain in the dark.
I fail to see why @ned is the only one that can sell this blockchain. Crypto is a team effort. We are all in this together.
I fail to see how even the best marketing in the world is effective when the sign up process is manual and only a few hundred a day are going to be approved.
I would say that's an easy fix though. Stop giving new accounts Steem Power and Delegation. Add Delegation for raw bandwidth. Problem solved. Instant Signups. No more mass bot exploits.
Indeed. Imagine the demand to sign up if cryptocurrency journalists actually took notice of what is happening on Steemit. Seems like so many of them are Bitcoin cheerleaders, celebrating Bitcoin dominance day in and day out.
This is just elaborate enough to drive home your stand in the fact that steem it a ticking Time bomb. It's indeed and untapped resource but one thing I do know is that time will definitely tell. Only time can solve this problem because at the moment, people are distracted by other token that do not hole as much potential as steem. Soon they will all come to their senses and know whats best to invest in.
I think most people don’t see the potential because they only see what’s happening on the surface. They judge the book by its
covertrending page and think it is a broken system. This will change with the first use cases for SMTs.I can't seem to find the answer on when SMT's will come out...
yeah, but Haejin is raping the reward pool!!!
and what about all them bots?!?!?
(Tongue in cheek)
I'm bullish on Steem as proven by quite a few articles I've written.
Thanks for sharing @taskmaster4450
That was an
interestingexciting read!I'm aware of the potential steem has due to its speed and lack of fees. It's a big part of why I own about 5x as much steem (on a dollar cost basis) as I do any other crypto. It's literally the largest egg in my crypto basket.
It's not always easy to be patient with ETH loyalists, is it!?
This is a sound analysis. The SMT protocol is comparable to the ERC20 protocol, only superior in terms of performance and scalability at the moment.
Steemit, Inc is so valuable for holding so much STEEM that they could hire real marketing professionals to do the job once SMT's and Hivemind are ready to be deployed from a technical point of view.
As absurd the example with Kik is, this is unfortunately how many people think (and therefore companies act). They have the tendency to over-complicate things and sometimes facts are not enough to convince them otherwise.
Even is SMTs were already here, I'm not sure, if Kik would have chosen them.
It's not so much the facts that count, but politics, sentiment and marketing.
Ether is better known and Stellar is an Asian project like Kik. (please correct me if I'm wrong).
As @tolkatore said. as long as Steemit Inc. is lead by a CEO who has no idea about PR and marketing, it will be hard to convince anyone with facts alone. Especially the crypto world seems very resistant to facts and work highly non-logical.
Of course I would be more than happy, if this would change in the future!
@jerrybanfield implied in one of his videos that Steem Holders would receive SMT's because they held Steem. Is this correct or did I misunderstand?
I believe SMT's will be a game-changer for the entire industry, I am pretty much all-in on Steem! I do however hold 1.328 Million KIN Tokens
😄 😅 😆
Hoping they can make this thing work and I can make a few Fiat $ in the process...
Short answer: No
I'm aware of the potential and amazing tech, but I still dont understand quite a lot of things.
Where does Steemit store all data like videos? How does the IPFS work?
Should I get involved and store data? For how long?
Will Steemit be able to challenge FB? Is it designed for this purpose?
Steemit it will only challenge Facebook if there s a need. People don't feel that need, even if Facebook is worse than Orwells worst nightmare. Look at the latest "scandals" and what happened? Steemians celebrate a million users... frankly this is kinda ridicilous. Imo people need to wake up from being so numb in general, but if you look what gets the clicks, I m afraid to tell it s nuttin but speculation to say anything but nobody knows if steemit will survive the next years. I wish Snowden would tell, what is kept back as his life insurance, there need to be a really big thing, to change society the way crypto-freaks want it... :)
The world has gone mad and there must/will be a change. What kind of change we will see is still uncertain.
yes, it s just naive if one thinks "the change" could only be for the better. There s numerous scenarios, how this whole blockchain thing could either vanish again completely or gets misused by those in power. Hope the best, expect the worst.
Yes, everything can happen. In this “trustless” world my “guts” tell me that crypto will have a future, at least some crypto projects.
i think they need EOS more then steemit
Hi @taskmaster4450, what do you think of LIT and Mithril? :)
Good read!
Steem is going to greater heights.
Nice post
steem is powerful....cryptocurrency are the future....best of luck
Coins mentioned in post:
@taskmaster4450 we are here so early and not many can figure that out.
i also think steem is our future.....
great article share with us, i think cryptocurrency our next currency in future.
I believe Steemit is mostly a proof-of-concept for the Steem blockchain. Thus, when SMT is now launched, the marked already know that it works smoothly. Would not mind if Kik swaps to an SMT.
First it is necessary that SMTs arrives and works. And only after we can consider the future and its possibilities ... Now SMTs are a dream... Maybe one day.....
I love Kik. I would much rather use them than Messenger. I will have to check out more about their tokens!
A few really big fish on the Steem blockchain will probably run the price up dramatically for Steem/SBD. And when the price goes up like that, demand to sign up will far outpace the capacity for new accounts to be created. That might even make the news at Coindesk or some place like that.