STEEM & Bitshares Are Poised To Dominate

It is interesting to watch the comparisons that people make when talking about the blockchain industry. We often see comparisons that might make sense on one level yet really do not apply. To me, this can be misleading.

There is a tendency to compare blockchains to companies. People like to look at the market cap of a particular blockchain while comparing it to a certain company. We all saw the comparisons of how Bitcoin is bigger than ABC company. The market cap of Bitcoin rivals the banks. STEEM will be as big as Google.

Of course, there is the flipside. Some believe there is no way for a blockchain to be worth a trillion dollars since no company is worth that. Look at Apple (or any other top company) and compare what is going on there to Bitcoin. It is absurd to value Bitcoin that high.

The challenge with all this is that blockchains are not companies. They do not operate under the same structure nor do the same rules apply.

Blockchains are networks. In this manner, if we are using an analogy, they are more like cities or states. They have their own rules, protocols in this world. Since they are an ecosystem, they are self contained entities which have some interaction on the outside but basically operate on their own.

In a company the CEO is very important. Enormous power resides with that person in some organizations. While the governor of a state is powerful, there are limits to what that person can do. The same is true for cities. In fact, most everyone can name the CEO of Facebook yet many have no idea of the name of the mayor of the town he or she lives in (I admit I have no idea).

There are a different set of questions asked when looking at a city compared to a company. When one is looking to set up a business, things such as property values, demographics, crime rate, taxes, and population are all important criteria. Cities are not in "competition" as such although politicians certainly make it appear that way. A successful business in one city is not going to up and move to another simply because the city is not the latest and greatest. The US car companies are still located in Detroit even though that city went to hell decades ago. As long as money is being made, that is sufficient.

The same is true for blockchain. A different mindset is used to analyze them.

When looking at the blockchain market, what is the most attractive real estate?

In my mind, it simply is STEEM and Bitshares. Both these blockchains are light years ahead of everyone else. If Bitcoin is Detroit, STEEM and BTS are Silicon Valley. They offer the latest and greatest real estate. Unlike the city, the pricing is affordable for anyone.

One of the biggest mistakes that people make when looking at this industry is the value of the "real estate". The greatest application in the world is useless if it is tied to a terrible blockchain. We witnessed what CryptoKitties did to the Ethereum blockchain. That would not happen on STEEM or BTS.

It is amazing to understand how far ahead of the curve @dan is with his blockchains. We all see that these two blockchains process 2/3 of all the transactions. @stan believes that, by the end of the year, with the introduction of EOS, that number will jump to 80%.

We need to shift our thinking to the networks. Just like a city, people are not simply going to up and leave. There are still plenty of people who live and have businesses in cities that are not in the top 10. Many of these businesses are thriving. As long as people are making money, the incentive to relocate is reduced.

Also, networks remain in operation. So long as one person is running the software, that blockchain is still going. Granted, it will not be a highly valuable one yet it is still in existence. Just like a city, as long as there is one resident, it is still there.

Speaking of @dan, the question of EOS is often brought up. Many believe this will be the destruction of STEEM and BTS. Nothing could be further from the truth.

To start, EOS is an operating system that has the ability to be implemented into these blockchains. @stan mentioned Bitshares 3.0 and how the "Bench" team is already working on ways of implementing the EOS technology into BTS.

As for STEEM, using the city mindset, it is easy to see how the development that is taking place on this blockchain is not likely to leave. Sure, some applications might pick up and go to another area, just like businesses do. However, the vast majority are designed to operate on this blockchain. As long as there is profit, people will remain.

In addition, we do not know what the STEEM team will do in the future. From what I understand, there are aspects of EOS that can be implemented. Will we see that? Only time will tell. Nevertheless, we must be mindful of drawing short-sighted conclusions. There is a ton of activity taking place on this blockchain. Having the early adopter advantage is huge. Again, time will tell if that is leveraged.

@stan did an interview on @bluerocktalk that really talked about some of this. It is long but the part of the video that discusses this is about 5 minutes. Start at the 1:16:00 mark.

There you have it. The fact that these networks can be viewed as better real estate is huge. With the introduction of EOS, Bitshares is looking at modernizing their city even more. Using the advanced technology, the gains that Bitshares has made is going to be leveraged even further. We will have to watch as more information is revealed about the "Bench-chain".

What about STEEM?

I honed in on what @stan said.

And it can host Steemit. I think he (@dan) might even have a plan for something like that.

Now I am sure @stan is well aware of the difference between STEEM and Steemit. One is a blockchain, the other is an application. Steemit is a privately held company. While @dan holds STEEM, none of us have any idea what the ownership breakdown is of Steemit. It is a private corporation. Did @dan sell his shares or did he retain them? What are his plans going forward?

Of course, we cannot answer that but the point is clear: @stan believes @dan already has some ideas about what he is going to do. Was him using the term Steemit in reference to the company or the STEEM blockchain?

Whatever the decision, we should all feel confident knowing that we are sitting on top of some pristine real estate. While other blockchains deal with scaling issues, these two blockchains are looking at other things. Since applications are limited by what the blockchain can do, it is crucial to remember what the basics are. Just try and envision Steemit on the Bitcoin blockchain. Can you imagine 10 minute transaction times on social media? It would not work.

These two blockchains will not be the only blockchains, but they will be two of the dominant ones. Not only did they start out in front of everyone else, there are options out there to keep improving them. The question is what is embraced by the development teams.

This is going to be the difference maker.

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