RE: Is Steemit in Trouble? (new ICO)
Great find @hatu, this is very pertinent information to the steemit user base. I flew through the whitepaper, will take more time to read it again. This brings up a few immediate questions for me. #1 Why not use steem token in the user base for this due to the slower transaction rate with ERC-20, if I understand it correctly 5-10 transactions per second? That is barely enough to support a single city newspaper network. Also, not to be in denial, because I do think this is next level thinking and to a degree where steemit needs to aim, but this seems much more so for professional writers with bigger audiences. Many more people are better to be able to "press the flesh" so to speak here on steemit and post with less formality and less stress on being more professional given the competition that will be on that website. Do I want to pay Jimmy Public Blogger 0.04 to read his/her hot sports take of the day, or do I want to pay William CorporateConglomerateAuthorPublisher $2 sbd for a 6 month subscription? SBDs used to demonstrate the point, they work their own token of course but I think you get the point.
Oh and you raise an interesting point!
You might be on to something when you say that this might be better suited for professional content creators. It better alligns with their needs too since there is a heavy focus on building creator-sponsored engagement.
But I feel at the end of the day, it will offer opportunities to content creators of any calibre.
Hi cryptkeeper, first off, I hope you becone a regular commenter since this is the type of active engagement I hope to receive :)
Now the response:
You actually raise similar points as I did when I had a talk with MEDIA Protocols team yesterday. I can see why they won't use SBD; there's some speculation that SBD is backed by $1 fiat of STEEM so it could eventually be pegged at that price. Even if the chance is low, a 3rd party project won't take that risk. I actually asked them why don't they use STEEM blockchain.
I learned that the main reason is that any URL (and later IPFS address or other distributed protocol for sharing content based on blockchain technology) can be registered against an Ethereum account and form part of a transaction between content publishers, promoters, distributors and consumers.
And if the team feels they eventually need more scalability, they stated, "We have the option of migrating the token to a different blockchain, which could be our own, or another third-party alternative to Ethereum."
It's good that they have considered all possibilities and are prepared to migrate to alternate blockchains (or maybe even build their own) if the need arises.
Yes certainly, I love to see what the ICOs are coming up daily, really a lot of it is over my head, I am newer to crypto, hadn't really given it any thought until I joined steemit back in december of 2017. I like the multiple dynamics they bring in payment structures, that is very fascinating. Thanks for the legwork in bringing this out and I will be checking out your posts as often as I can!
Good to have you aboard; I look forward to future engagement with you.
As for ICOs, you are right, there are many coming up every day, but I try to write posts on those that stand out. ;) Lots of projects are pursuing so many different innovations and you'll be hooked to getting updates in no time.
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