In this article, I am going to discuss some of the ways I analyze blockchains and why I feel that STEEM is going to be one of the dominant ones.
There is a fundamental way that I think this analysis should take place. It starts from the bottom and works upward. Each layer provides a foundation for what is built on top of it. Without that strong base, whatever comes after will not be of maximum value. As you read this, think of Ethereum which really exemplifies why they are having issues.
So let us take a look at the 4 Basic Reasons Why The STEEM Blockchain Will Dominate.
STEEM is a @dan Larimer created, graphine based blockchain. This provides the basic ability to generate the horse power needed. In other words, the STEEM blockchain is not a dirt road with potholes. Instead, we are looking at the Autobahn. This was made for speed.
There obviously are other blockchains out there that mirror this. @dan, himself, created two others. At the same time, many forked what he created to establish their own chains. Nevertheless, even if STEEM is not the only one, the foundation is in place.
STEEM has the ability to kick a** when it comes to processing a ton of transactions.
The Autobahn is of no use if one puts a horse and buggy on there. Imagine running the STEEM blockchain on a bunch of 486 computers. The results would be less than spectacular.
It matters little what the capability of the blockchain is if the infrastructure running it stinks. This is where the development team's decision to focus upon this area is going to pay dividends.
@steemitblog wrote a post the other day talking about how STEEM Is a specialized blockchain. At the base level, the coding is very efficient. STEEM does not try to do too much here. This is what allows for faster interaction since only critical data is processed at this level.
When you couple this with some other areas such as how data is loaded and unloaded from memory and the API, we see that the work is paying off.
The development team is focusing upon putting a Ferrari on the Autobahn.
This is something that is not out yet but it is going to be a massive boost.
For those unfamiliar, Hivemind is a layer that goes upon the Internet. This allows for horizontal integration as opposed to only vertical.
What does that mean?
If we look at Facebook, when one signs up and gets a following, that is all in the Facebook ecosystem. When that same entity or person goes to YouTube, he or she starts all over. If we look at the two lists, they will be different people.
Hivemind eliminates all this. When a group of people come together, they move as one from application to application. This means that those who are together on Steemit (or Busy) will also be a group when one opens @dtube or @dsound. This will also have the ability, from what I understand, to extend to the traditional social media sites if they want to embrace it.
The other thing Hivemind does is it provides developers the ability to determine how centralized their applications are. Right now, any app is decentralized in the interaction with the blockchain. There is no choice. Obviously, anything saved on one's server is centralized but the data that hits the blockchain is decentralized.
Hivemind shifts this in that operations can take place at the Hivemind level which do not hit the blockchain. For example, since Hivemind is tied to the "communities", the naming of moderators takes place on Hivemind yet never touches the blockchain. Only the data that is fed through such as a post hits the blockchain.
I was going to name this applications but decided to focus upon what is really pushing things forward. Obviously, developers create applications and it is the apps that people are going to use. However, it is the creativity and innovative ideas that are really going to make the difference.
STEEM is called the "Blockchain of Opportunity" simply because the catering to the developers. A lot of work is being done to create tutorials that will enable more coders to create on this blockchain. Once they have this part down, it will not take these people long to realize that they can fund their projects via the Smart Media Token protocol. Monetizing their ideas through a in-house funding mechanism is really going to help attract ideas. There is going to be a ton of experimentation over the next few years. This will all lead to more exploration as ideas are built upon each other.
The developers are where the money is at. They are the ones creating the applications which we will use to get paid. This is something that cannot be stressed enough. If they create things that are widely appealing, those of us using them are going to profit handsomely. This requires having a sound plan along with the ability to continually upgrade and update. It is not an easy task. Nevertheless, those that accomplish this are going to provide enormous benefit to this ecosystem.
Fortunately, we are already seeing this take place. Over the next 9 month, it is my opinion that we are going to witness a lot more of this.
Remember, on STEEM, they will be given the ability, through the SMT protocol, to create mini-STEEMs.
There are a lot of factors people use when looking at this industry, That said, when I look at the core essence of what is taking place and try to project it into the future, this is what I see. The community that is developing will only grow if what I just discussed continues to evolve.
We see a lot of discussion about other projects. The difference, in my mind, is that STEEM is on generation 2.0 or 3.0 while the others are pulling out their original version (or working upon it). STEEM is overlooked by the industry yet that does not mean it is not poised to take off. Looking at the top 10 tokens, based upon marketcap, I see few that can match what I described here. Bitcoin and Ethereum both run into trouble simply because this foundation is not in place for them.
Having the ability to handle hundreds of millions of users is the name of the game. With an industry so small, it is hard to look at that but it is crucial. The potential of STEEM is huge and having the ability to satisfy what the developers create is vital. This is what is being worked on.
Hence, when STEEM has its' CryptoKitty moment, the blockchain and infrastructure will be able to handle it.
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