Editor's Note: This article comes fromVernacular Blockchain (ID: hellobtc), Author: Ah Hua, reproduced by Odaily with authorization.
Editor's Note: This article comes from
Vernacular Blockchain (ID: hellobtc)
, Author: Ah Hua, reproduced by Odaily with authorization.
Overall, Bitcoin has far outperformed other altcoins in the cryptocurrency market this year. Therefore, there are more and more "bit theology" in the industry, such as "except Bitcoin, all are altcoins" and so on.
In the world of blockchain, is there really only a situation where Bitcoin is the only one? Today, let's talk about the relationship between Bitcoin and altcoins.
Reminder: The Altcoin mentioned here refers to Tokens other than Bitcoin, including public chain coins, platform coins, application coins, etc.
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The Relationship Between Bitcoin and Altcoins
Graduated from Fudan University and a well-known domestic digital currency legal expert "high-quality blue collar" once said:consensus algorithmBTC and the blockchain industry have parted ways. This is not due to the price comparison between BTC and Altcoins, but the obvious bifurcation of the two development paths, and the bifurcation is increasing rather than converging.
Bitcoin and other altcoins come from the same underlying technology, for example, they all use cryptography,
consensus algorithm
, Distributed storage and other technologies.
After ten years of development, Bitcoin has developed into the first successful application of blockchain technology, but in the blockchain industry, not only Bitcoin, the so-called altcoin will not be replaced by Bitcoin, but also It will grow stronger and stronger.secondary titleWhere Bitcoin is headed
So far, the most important function of Bitcoin may be "store value".
Bitcoin's digital gold positioning has become more and more popular, and it has also been recognized by more and more mainstream investment institutions, such as various forms of Bitcoin ETP,
Bakkt Launches Bitcoin Physically Settled Futuresetc. In the not-too-distant future, Bitcoin is likely to become an option in the public asset allocation portfolio.In the Impossible Triangle, Bitcoin sacrifices scalability in exchange for extreme decentralization and security. From the perspective of stored-value assets, the stability, reliability, and security of the ledger are the top priorities. As for its scalability (transfer speed), it is relatively less important.
In order to solve the problem of slow transaction speed and high fees, Lightning Network was developed
. As of October 21, the number of Bitcoin Lightning Network nodes has reached 10,226, the number of channels is 32,347, and the number of Bitcoins in the Lightning Network has reached 821.05BTC.
image description
Source: 1ML
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Altcoins
1. Positioning of altcoins
Unlike Bitcoin, which is currently mainly used to store value, other altcoins try to provide new production relations, organizational forms, and business models beyond companies, changing the paradigm of social and economic operations. The sum of the social value brought by these altcoins will most likely exceed the market value of Bitcoin, although Bitcoin currently occupies an absolute dominant position in the market share (on October 21, the market value of Bitcoin accounted for 69.05%) .
Bitcoin’s market capitalization ratio, source: TradingView
Although the current public chain technology is not yet mature and perfect in many aspects, with the advancement and development of technology, more and more DApps that will have a significant impact on our lives will inevitably be built on the public chain in the future. These DApps are likely to permeate all aspects of our lives, profoundly affecting and changing our lives, which is exactly the mission of these public chains.
2. Advantages of altcoins
Since the public chain is trying to provide a new business model, compared with the old business model, what obvious advantages does it have?
1. The public chain will re-establish social trust
Blockchain technology establishes a reliable trust mechanism through distributed ledger technology, re-establishes a social trust relationship, and transforms the traditional trust model between people into a trust model between people and machines. It allows users to conduct credible and traceable transactions without being under the control of a centralized platform, making the cost of information authentication in various transaction modes and scenarios close to zero.
2. Cost reduction brought about by decentralization
The application of blockchain technology (public chain) will greatly save social costs, and the collaboration between people will not only become easier, but also the forms of collaboration will become more diverse.
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3. Other advantages
In addition to the above two advantages, the blockchain can also reshape the relationship between employees and companies by issuing Tokens. Employees and companies will change from employment relationships to partnerships.
