A few months ago such concepts as “smart contracts” and “decentralized marketplaces” were completely unknown to most altcoin traders.
Time have changed drastically.
After numerous cryptocurrency ecosystem launches, the average altcoin investor is now much more comfortable with the terminology that describes next generation cryptocurrency and the concepts which make up what could be creating financial systems of the future.
There are now numerous, competing systems to choose from. In much the same way altcoins became crowded with competitors, now larger ecoystem-style projects are also beginning to litter the online landscape. The trouble with this approach is that these ecosystems require lots of educational prowess in order to become useful. Early adapters who become involved in these projects face steep learning curves. This is a big issue because financial systems need to be extremely simple in order to attract usage. With multiple competing systems, new potential users could become easily overwhelmed by the choices they face and they could easily bog down in the details.
Next Generation Cryptocurrency Has A Lot Of Potential
These cryptocurrency ecosystem projects have grown in the same way altcoin projects have for years. Launching new projects never seems based solely on demand. Instead, the supply is pushed out there in order to make the marketplace decide whether the project is good or not.
One area in which these newer projects are superior to older ones is that they offer more features and potential from the beginning. A generic altcoin can only promise so much. As history has shown, very few people will use a new cryptocurrency. Vendor and user adoption tend to stall out almost immediately. Next generation cryptocurrency ecosystems may have the same thing happen, but they have a full slate of usability which gives them a greater chance of stimulating economic activity.
Next generation cryptocurrency ecosystems allow anyone to easily create digital tokens for projects. This functionality should cut down on the number of new altcoins launched because these tokens accomplish the same exact functions as a cryptocoin, only without the need to manage infrastructure. As time progresses, multiple successful tokens can stimulate large amounts of activity on a platform, which should help the underlying currency achieve solid volume and price stability.
Standalone Cryptocoins Are Losing Ground
Classic technology infrastructure projects have proven extremely successful in the past decade, so it’s no surprise to see the same approach being emulated here. It might not be a completely accurate statement to stay standalone cryptocoins are dead, but they appear to be heading in that direction. Despite initial fanfare, they never seem to catch on and gain any marketing bulk. They tend to be used by small groups of people who remain insulated. Dogecoin was the closest one to catching on with the masses, but even that coin has cooled off over time. Cryptocurrencies other than Bitcoin continue to face an uphill battle to gain usage.
Next generation crypto ecosystems can tackle the issues of Bitcoin and solve them. That doesn’t automatically mean they’ll bypass Bitcoin as the leading cryptocurrency. Instead it means valid ideas are being introduced at a more rapid rate than if Bitcoin was the only cryptocurrency project in existence. The current altcoin scene is a pressure cooker for new ideas. Bad ones won’t last long and good ones will eventually be incorporated into leading projects.
Things are shaping up nicely for a few well-developed ecosystem projects to really move to the forefront of the crypto-scene.
Thanks for stopping by and reading! If you have any comments, please leave them now.