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Offline James

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"Second generation money" really exist? And Bitcoin is competition or complementary

Author: @ Rampaging Prince Gong

Edit/Translation: Stan Larimer

Long time no write some text, most recently with the launch of BTSX, there are many of my friends started to discuss things about the meaning of the second generation of currency, we can also see a lot of friends on the second-generation full of coins and the community in the micro-Bo hostility that second-generation technology is not enough to replace currency generation currency or coins are considered second-generation digital currency within a community blood will lead to a decline Bitcoin prices. Indeed, there are more than a year into the digital currency industry friends, does not seem to understand the generation of second-generation currency and coins What is the difference, it was generally considered the second generation currency is misappropriating things, the basic tool is a liar. The reality of the situation is that no one really seriously discuss what is really the second generation currency, its currency and so-called generation what difference.

Personally feel that many of the problems we intense debate, the fact is that everyone is different definitions of things.The reason seems to be due to the currency on the second generation has a great understanding of the deviation. So today I want to talk about the "second generation currency" personal understanding. First, Bitcoin (BITCOIN, is capitalized) is a decentralized payment system, which can be seen in the title of this paper Cong "Bitcoin: A Peer-to-Peer Electronic Cash System (Bitcoin: A peer electronic cash system). " And every bitcoin (bitcoin, lowercase) is a unit of measurement of the system.

I think the core values ​​of bitcoin system is "decentralized", it relies entirely on decentralized system architecture for self-operation and Development. And "to the center" is a very valuable concept, so many people think, if Bitcoin seen as a "decentralized" in the field of monetary payment, does it also can be applied to other fields. For example, decentralized exchange, to the center of the betting, decentralized microblogging. This is the so-called "second generation currency" comes from, so we can find the so-called "second generation currency" is a name for itself in question, he is actually an application, but does not have too much money and relationships. Currency is currently the second-generation kind of argument, does not seem to find a similar abroad say more is called DAC (to the center of the autonomous system), I think this is probably more in line with the actual situation.

" second-generation currency (DAC) "essentially more similar to a particular application, a kind of" decentralized "as a symbol of the system, it may in the future is that Taobao, microblogging, micro-letters, like the taxi system You can be understood as a software system or a company. That's why they take more POS (Proof of Stake) Equity proven way, because the so-called equity POS allocation is the reality of the stock. The original founder of the majority stake will definitely be left to the relevant stakeholders and systems, these stakeholders are willing to devote more resources to make the system better growth. This is the current practice in many real-world companies, has also been recognized by most people. Thus, we can find POS and POW is not a mutually exclusive relationship. Playing a not entirely appropriate metaphor, in the world, manufacturing and distribution processes and currency listed shares distributed process has a very big difference between the two, so the POS and POW but in different application environments, selected according to the actual situation two distributions, and there is no competition, even far from the question of who will eventually replace anyone. Currently most of the main starting point of contention is the "second generation currency" as a kind of currency to look at, but the reality on the contrary, if you can it be seen as a stock company, the POS becomes a logical outcome .

Based on this knowledge base if you can, you will find a lot of controversy is in fact unnecessary. The so-called "second generation currency" and simply not enough to compete with bitcoin. Instead, these "second generation currency (DAC, go to the center of the autonomous system)" to build a complete digital money ecosystem. Bitcoin is currently the biggest problem is actually the problem is the application, in addition to the usefulness of cross-border payments, currently applied in other places may still small, and the "second generation currency (DAC)" is inherently Bitcoin application scenarios, if there is to the center of the systems, which are inherently digital currency can be combined.

Light so that it would appear to be more abstract, let's take a concrete example.

We can envisage the establishment of a DAC (second generation currency) of microblogging, microblogging system there is no centralized server, but to provide a client (network client software may also include APP). The DAC will provide Weibo and Sina Weibo microblogging functionality similar to that everyone can publish free microblogging system, the system every 10 minutes will be the latest microblogging packaged and tweets after finishing into block chain ( Blockchain) a new block, and the new block which is transmitted to each node. The new participants to contribute their computer systems and hard disk as one of the nodes, the system will provide the operator in return for power and hard disk nodes microblogging currency (referred to as WBB, WBB began sending 100 per hour, after annual halved), each will own a microblogging currency BTC address. The system functions in addition to providing release micro-Bo will provide some special charging function, such as Weibo microblogging can be top or broadcast a range of users in each time you use a function, you need to pay 0.0001BTC. It also provides advertising interfaces need to publish advertisements in microblogging advertisers need to pay certain advertising costs to the system (via the built-in BTC address), and then click or browse according to the number, the system will automatically deduct the BTC. The BTC system every 24 hours, will be charged to the total current WBB has been issued, and sent to the holders of WBB's personal account.

Thus, we constructed a simple microblogging DAC, the DAC in this, beginning perhaps not too much participation is likely to communicate in a small area, but if the team has a strong confidence in the DAC, the After the initial release can themselves become a node, then continuous optimization and promotion, as long as the micro-Bo began to have a certain income, people would join the system becomes a node to get rewarded by obtaining WBB. Even better, since each WBB itself has the ability to be able to get bitcoins, the market will have a valuation of WBB itself, and each WBB will be freely tradable. With WBB valuations increasing, more and more people to contribute their forces and the hard count, the user experience will be better and better, will encourage more people to use microblogging. Thereby forming a virtuous circle.

From one perspective, this is the shares of WBB system, and the entire DAC is completely open source microblogging system, but it is also completely decentralized, which means that the microblogging DAC is more difficult to be attacked and regulatory location.

Like the previous example, we can build a similar Taobao e-commerce DAC. The same also allow buyers and sellers to trade, of course, the beginning of this DAC may be suitable to accept bitcoin born as the only currency. Then the system will be charged a 1% fee from the transaction, and also to the system according to the proportion paid to provide computing power and data storage nodes. Similarly, he can also provide grant money as a contribution of some kind of digital identification, but this figure may be closer to the company's shares in the currency.

Obviously, this DAC is in accordance with the globalization, to the center of the development. The entire system is also able to build a virtuous cycle and have a contribution for each participant's own ability to continue driving force.

Non-DAC, if let you participate in such projects as Taobao is very difficult, and DAC, each of us can participate at any time and at any time according to their ability to choose to put resources and effort. We can be found through the DAC, a lot of people who had no intersection can hold the same purpose to collaborate. Between them may never know, but it can pay for the same work DAC and DAC accompanied by a corresponding growth harvest feedback. This in no DAC era is unimaginable.

Through the above two examples, we will find that these so-called "second generation currency (DAC)" and Bitcoin is absolutely not competitive state, but entirely complementary. Digital currency can be completely seamless access DAC system, so the preferred payment DAC is necessarily digital currency. DAC can become great digital currency scenarios, have appeared in various types of DAC will greatly expand the use of digital currency. This constitutes a closed loop, forming a complete ecological system, and perhaps this is the real next generation of the Internet environment, a great environment to achieve but to the center of self-development, and this trend is in line with the Internet itself, democracy, freedom and equality of these qualities.

DAC (II coins?), You need to bring to the center thanks to technology and intellectual revolution, to the center of the system makes the possibility of obtaining a great success in the future become so real. To the center will not only thinking for digital currency, which is to establish a method for almost all types of non-erosion commercial relations. Like internet technology is by no means merely a document that can be used to search, but there are infinite possible business model.This new way of using different brought, like choosing a plane or a sphere as a model to plan your route as global navigation. When we learn from past experience that the company is driven by the market how it works in the real world, the variety of inspiration will be generated.

So when we call "second generation currency" when it seems to have potential as a so-called "generation currency" upgrade version, and seems to constitute the relationship between competition and replace. This is a lot of money just to understand the digital ecosystem friend will have a lot of trouble understanding.

Finally, I hope everyone in the future be able to "DAC" or "(to the center) autonomous system" to refer to the so-called "second generation currency."

Chinese version article:

Offline gulu

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This article has been read by 14666 times by now. Profound!
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你好, Rampaging Prince Gong。

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Offline fuzzy

I like to think of Bitshares as offering us bitshares x as a step toward second generation cryptocurrency along with a toolkit to enable all DAC developers to infuse their own ecosystems with value. 

Primary Token DACs
Let us for a moment look at the current field.  What do we see?  We see Bitcoin with its POW infrastructure, Litecoin with its different algo POW infrastructure, Peercoin with its POS infrastructure and a few others with similar, but unique decentralized consensus algorithms.  These are what I would call Primary Token DACs.  They represent the largest percentage, based on market capitalization and as such are considered the most valuable Primary Token DACs.  They have their own networks and communities that own and support them.  They focus primarily on the sending of funds from one place to another, acting as a store of wealth.   

Secondary Token DACs
Then we have Secondary Token DACs, known as "altcoins", that currently want to serve as stores of wealth. However, due to their late-arrival have been forced to add new features (like darkcoin, blackcoin, monero...etc) or reduced to clever marketing blitzes/pump and dump schemes to sustain and pay those who provide security/tx processing.  It is hard to be a Dev, "miner" or long-term holder of these kinds of Token DACs because there is a significant chance that many altcoins are going to be made for one reason--to pump and dump so Devs/miners can make a mint through the transference of value from newbies with bright bitcoin millionnaire dreams to one or all of the Primary Token DACs in the first section. 

The Difference
The Difference between PTDACs and STDACs is that the PTDACs are ones that have something else...a means by which others can transfer value to the ecosystem through a purchase of the token and, most importantly, the acceptance of that token for a valuable service. Lets think of all of these Token DACs as little towns in free space.  They have popped up saying "hey we have shiny stuff here! come here and get it!" and people flocked to them for the promise of riches.  Instead, most of their investors buy the shiny stuff, travel to their little plot of township acreage and find noone who will work to build them a home, or even a business able to provide the basic building blocks (lumber, nails/screws, power, saw...etc) to build one themselves. 

In this analogy we can say that Secondary Token DACs are little ghosttowns.  This is for multiple reasons:
1) most of them have no real infrastructure in place that accepts the tokens their settlers purchased early on.
2) most of the tokens given out/purchased early on are not well known to a large number of people.
3) the low number of active settlers in the ecosystem makes for a lack of variation and "action potentials" (random sparks that cause great booms of innovation). 
4) mining cartels form, mining significant portions of a native land's token from the ground, sell settlers into their system and essentially steal value from them using contrived schemes. 
The settlers always end up being hurt from all of the above indicators, with special attention to the fourth.  However, using this analogy we can say that Primary Token DACs are little better.  Though they often have interesting features combined with fewer troubles with at least one of the of the above indicators. 

"Arise Bitshares Toolkit"
and the Emergence of Ultra Mega Service DACs...
The BitShares Toolkit essentially gives DAC Devs an easy means of creating Service DACs that have all the beautiful functionality economically sound structure offered by TITAN and DPOS, which essentially is like giving your DAC the best of all worlds with regard to features touted by the top contenders in the STDAC sector.  For instance, TITAN gives user privacy and encrypted messaging.  DPOS gives all the benefits of Ripple and beyond, in terms of scalability, along with the value of shareholder voting for the power structures that form up around it. DAC Devs can release their own Service DACs also gets the ability to reinvest electricity savings from transaction fees back into infrastructure, burn fees to create deflationary scenarios (if/when it is ever wanted/needed), lower fees substantially, and operate on equal footing to some of the fastest processing networks in existence. 

But lets see, we might have saved the best for last (pretty sure we did ;)).  A DAC dev can create Service DACs that honor all the loyal settlers who stuck with them through the pumps and the dumps, through the drab times, when the entire colony was starving, thirsty and in need of shelter.  That Dev can use the BitShares Toolkit to create their own bank (like a clone of bitshares), construct Casinos, voting apparatus(es), and other needed services.  Then the Dev can turn around and provide a snapshot of a large portion of those Service DACs' tokens to the holders of their PTDACs/STDACs.  Over time, this kickstarts others' willingness to invest long-term in the PTDAC/STDACs' shares. 

In this way, BitShares can breathe new life into an industry that is far overdue for it.  What do you think? 

BROWNIE==DKP; BitShares is our Community! 
ShareBits Welcome to  the Sharing Economy w/ &
TIP FORMAT: #sharebits "ForumHandleInQuotes" Quanity Token_Name