Tokenization: The Student Becomes The Master

avatar

vader-student-master.jpg

Many of us could never fathom an ERC-20 token being worth more than Ethereum or an SMT being worth more than Steem. Why is that? We just assume that a child project created on a main chain could never be more successful than the parent chain.

I'm here to say that it is not only probable that this will happen, but likely impossible to avoid. Every project created using the tokenization mechanics of the main chain has a chance of dethroning the market cap of the chain it's built on. There will be thousands of opportunities. It's really only a matter of time before it happens.

city-planning.jpg

Think of a smart contract platform (Ethereum, EOS, Cardano, Tron, NEM, Qtum, Lisk, Steem, Golem, DragonChain, etc.) as the foundations of a city. These cryptocurrencies are building infrastructure. They are building roads, running water, power lines, housing, medical facilities, grocery stores, fire departments, police, and all the other necessities a city would need.

Now, do you visit a new city to compare supermarkets to your home town? Do you check out how good the road layout was planned or take note if the power lines are above or below ground? I mean, I'm sure somebody does, but 99.999% of everyone else is there for the attractions.

entertainment.jpg

Entertainment.

You don't go to LA for the air quality. You go there for Disneyland. You go there to party and get laid or what-have-you. Nobody cares about the plumbing in the bathroom. Nobody gives any thought to the foundational necessities that every city has. They are simply expected to be there and no one thinks twice about them unless there is a problem.

That's what Steem is; that's what Ethereum is; and all the others. If Steem was a baseball game, the players haven't even stepped foot on the field to start practicing. The grass is overgrown and the lines still need to be redrawn. All of the snackbars are closed, it's way too early. Why are you even there so soon? It's like lining up for a movie 3 days in advance and then complaining that you're bored.

Darth Libra

I'm really diggin' this Vader analogy. Spoiler alert: What happens at the end? Vader (Libra) kills the Emperor (Fiat) and is left mortally wounded.

The Rebel Alliance wins.

Yeah, sure, there were some bumps along the way, but the outcome stands.

And what happens after that?
The whole process starts all over again and centralization and corruption begin to reforge within the new system. Everything is cyclical. History repeats.


Come See The Attractions!

It makes a lot more sense that the theme park inside the city is going to have a much bigger draw than the city itself. In fact, what little draw the city has is pulled from the self-contained projects that are housed within.

Discrepancies.

Unlike a real city. Crypto exists digitally and has a lot more options. Tokens can break away and create their own chains. Tokens can obfuscate the platform they are on and users might not even know that it exists on a parent chain to begin with. The analogy isn't perfect, but it is relevant.

house-foundation.jpg

Conclusion

The next time you want to judge the success of a blockchain based off of a few months of sub-par price action remember that the main attractions haven't even been built yet. We're practically staring at an empty lot wondering why more people don't want to invest in it. Take a step back and look at the big picture.



0
0
0.000
13 comments
avatar

Ahahaha. That's a good point of view. I am accumulating eSteem tokens like crazy. I hope one day they are worth something. 😎

0
0
0.000
avatar

I mean the first sign/example of this if you abstract the idea of "platform" is Tether and Omni.

0
0
0.000
avatar

100% agree. Nice analogy.

The value capture mechanism for protocol layer tokens is not a linear relationship with the sum value of the tokens launched on top of it (like a VC firm).

Rather ETH and STEEM and ONG and the like are payment "gas" tokens to operate on the network.

0
0
0.000
avatar

Never thought of it like that... and makes total sense! Let's see what the foundation will support in the near future!

Posted using Partiko Android

0
0
0.000
avatar

Some Steem-Engine token should try and strike STEEM down because then STEEM would become more powerful it (we) can possibly imagine.

0
0
0.000
avatar

You have seen steem's code. You really trust to build ur city on thr infrastructure?

Price action is another thing. Bitcoin and others have moved 2 to 2.5x while we're are still sitting near yearly lows

0
0
0.000
avatar

You have seen steem's code. You really trust to build ur city on thr infrastructure?

The vast majority of Steem's code is Condenser. It runs Steemit and the database nodes and whatever else (creates blocks, little things like that).

At it's core, the data of the raw blockchain is incredibly basic. It's the way we interpret it and validate it that becomes a clusterfuck. I don't think it is going to be that difficult to start rebuilding things from ground zero if that's what a good project demands.

I think open source communities like PALNet will easily becomes strong enough to break away from Steem entirely if the situation demands it.

0
0
0.000
avatar

curation is build into consensus layer. Any frontend that adopts it, will have to deal with it. Stuff like this i dont like. They have a variable for no curation but that doesn't work.

0
0
0.000
avatar

I think that is correct. A lot of people experience FUD right now. I'm torn between "the project is failing" and "we need more time to succeed."

0
0
0.000
avatar

If Steem was a baseball game, the players haven't even stepped foot on the field to start practicing. The grass is overgrown and the lines still need to be redrawn.

That...Nailed it right there

0
0
0.000
avatar

Congratulations @edicted! You have completed the following achievement on the Steem blockchain and have been rewarded with new badge(s) :

You got more than 4750 replies. Your next target is to reach 5000 replies.

You can view your badges on your Steem Board and compare to others on the Steem Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

Do not miss the last post from @steemitboard:

The Steem community has lost an epic member! Farewell @woflhart!
SteemitBoard - Witness Update
Do not miss the coming Rocky Mountain Steem Meetup and get a new community badge!
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
0
0
0.000
avatar

Pretty cool analogy, although I don’t think an ERC20 will overtake ethereum because of the sheer volume of the damn tokens there, I think this is a real possibility with Steem. There’s a lot to be desired and spaces like PAL can shift in the right direction. Perhaps this is why STinc has been dangling SMT’s but never delivering them. Or they just don’t know how to design it.

Posted using Partiko iOS

0
0
0.000
avatar

Now this has really help me to change the perspective i look steem recently.

0
0
0.000