Topic: "Why blockchain needs cryptocurrency?" (Read 612 times)
Blockchain is used to record transactions and other processes to create cryptocurrencies, not the other way around. Cryptocurrencies need blockchain
Blockchain is a revolutionary new way of sharing information and is clearly a valuable and transformative technology but cryptocurrencies are just a fad, the latest bubble from tulips to tech stocks. So, why care about cryptocurrencies at all? In truth, the two are inseparable.
The tokens that make up cryptocurrencies (from Bitcoin to Ether to Monero) are the means by which one participates in public blockchain protocols. This is not optional. It’s a fundamental feature of the technology. If a public blockchain protocol is valuable, then the tokens through which one participates in it accrue value.
The tokens that make up cryptocurrencies (from Bitcoin to Ether to Monero) are the means by which one participates in public blockchain protocols. This is not optional. It’s a fundamental feature of the technology. If a public blockchain protocol is valuable, then the tokens through which one participates in it accrue value.
What do I answer if someone asks me this question? I have done some research but I am still confused so kindly help me out. And this is my first thread on forum kindly excuse me if I made any mistake.
Thank you!
Blockchain does not needs cryptocurrency infract the cryptocurrency needs blockchain technology. It is due to this technology that cryptocurrencies are decentralized. Blockchain is a public ledger where all the personal information can be stored and you will decide what part of information you want to share and which not. So it can be very helpful in many sectors like banking, insurance, healthcare, supply chain management, etc.Thank you!
It's the other way around. Think about it:
No bitcoin or no cryptocurrency means => no asset available to reward miners => No miners means => Official validators required
But this means that we're turning around in circles back to a Central authority that provides governance!
Another question is why should appointed validators use a blockchain when they're the only ones authorized to validate blocks?
Why all the effort to mine and give PoW to themselves?
What do I answer if someone asks me this question? I have done some research but I am still confused so kindly help me out. And this is my first thread on forum kindly excuse me if I made any mistake.
Thank you!
Blockchain does not needs cryptocurrency infract the cryptocurrency needs blockchain technology. It is due to this technology that cryptocurrencies are decentralized. Blockchain is a public ledger where all the personal information can be stored and you will decide what part of information you want to share and which not. So it can be very helpful in many sectors like banking, insurance, healthcare, supply chain management, etc. Thank you!
Aside the technicalities that surrounds the blockchain which makes it different from bitcoin which a lot of people don't even get to know or understand, blockchain needs crypto currency for awareness and publicity. Today, a lot of people don't get to know about blockchain until they got involved with crypto and the quest for knowledge led to the discovery of what blockchain is really about. The discussion about blockchain today wouldn't have been possible without crypto currency. There are several technological breakthrough happening in several fields today but because there is no attracting factor to laymen, it becomes a technical jargon only understandable to people in that field and that is what crypto makes available to blockchain.
Actually, it's quite the opposite. Blockchain doesn't need cryptocurrency, but rather cryptocurrency was created for and using the blockchain technology. Simply said, blockchain will work without cryptocurrency. The blockchain is a ledger that shows and records all the transactions of a cryptocurrency. So basically, all of a cryptocurrency's workings can be tracked down in the blockchain, and it's tamper-proof. However, DApp or blockchain creators require cryptocurrency to somehow reward their users and miners and to attract more people to utilize it.
Guess you meant "Why Cryptocurrency needs Blockchain."
Blockchain can actually exist without Cryptocurrency, not sure if Cryptocurrency as we know it can exist without Blockchain.
Blockchain can actually exist without Cryptocurrency, not sure if Cryptocurrency as we know it can exist without Blockchain.
There's also DAG-based coins though (of debatable merit of course, but that's a different discussion).
And I'm still not sure how one would secure a blockchain without incentivising miners / stakers by means of a native token (or by building on top of an existing cryptocurrency).
Cryptocurrency needs Blockchain
[...]
- For anonymity
[...]
- For anonymity
Blockchains are transparent by design. Anonymity is achieved by specialized transaction formats,.
[...]
- To avoid double-spending
- To avoid double-spending
Blockchains don't prevent double-spending. PoW does. (and arguably other forms of Proof-of-Resource such as PoS)
A transaction in the blockchain can be configured to be not a currency. It doesn't have to be a currency per se. Lets say a developer created an election voting system that uses blockchain. Currency isn't involve in this situation but can just be a proof that you as a voter had already voted. Blockchain can be used in different manner so its not necessarily just for digital currencies.
If a blockchain has no currency attached to it. There's no need for the blockchain itself. You will get an empty ledger.
The right question would be. Can we attach an exiting national currency to a blockchain? Very unlikely.
First of all there's need for massive cooperation from current system.
What i would ask. Why we need one? Most of national currencies are already working digitally. IMO they're working just fine.
Bitcoin's birth was because of lack of trust on existing national currencies. It also helped removing restrictions existed/imposed to transact inter-nationally.
The right question would be. Can we attach an exiting national currency to a blockchain? Very unlikely.
First of all there's need for massive cooperation from current system.
What i would ask. Why we need one? Most of national currencies are already working digitally. IMO they're working just fine.
Bitcoin's birth was because of lack of trust on existing national currencies. It also helped removing restrictions existed/imposed to transact inter-nationally.
It will be better if you often visit cointelegraph and read some news (this is my go to source).
Georgia is the first country which implemented Blockchain Land title registry, this is innovative project and adds extra layer of protection to this service, it ensures customers that all data is safe. They have their NAPR webpage where you can search with document's hash code and you can search with the same code on websites like blockchain.info (blockchain.com) blocktrail, btc.com and etc...
Georgia is the first country which implemented Blockchain Land title registry, this is innovative project and adds extra layer of protection to this service, it ensures customers that all data is safe. They have their NAPR webpage where you can search with document's hash code and you can search with the same code on websites like blockchain.info (blockchain.com) blocktrail, btc.com and etc...
Guess you meant "Why Cryptocurrency needs Blockchain."
Blockchain can actually exist without Cryptocurrency, not sure if Cryptocurrency as we know it can exist without Blockchain.
Cryptocurrency needs Blockchain
- For decentralization
- for Censorship resistance
- For anonymity
- For Peer to Peer transactions
- To Have immutable transactions recorded on the Blockchain.
- To avoid double-spending
Etc
Blockchain can actually exist without Cryptocurrency, not sure if Cryptocurrency as we know it can exist without Blockchain.
Cryptocurrency needs Blockchain
- For decentralization
- for Censorship resistance
- For anonymity
- For Peer to Peer transactions
- To Have immutable transactions recorded on the Blockchain.
- To avoid double-spending
Etc
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
Both Sovrin and Blockstack rely on tokens ie. a native cryptocurrency.
Quote
The Sovrin token addresses all three problems by providing a built-in incentive for the privacy-preserving value exchange of digital credentials.
https://sovrin.org/wp-content/uploads/2018/03/Sovrin-Protocol-and-Token-White-Paper.pdfQuote
Blockchain protocol tokens serve two purposes today: they protect scarce network resources without introducing centralized gatekeepers, and they incentivize desirable behavior in network participants.
https://blockstack.com/tokenpaper.pdfuPort is built on top of Ethereum, ie. relying on a cryptocurrency-based blockchain for its security.
Quote
uPort's open identity network allows users to register their own identity on Ethereum independent from any centralized authority.
https://developer.uport.me/overviewWhile their main use case is not monetary transactions, all three rely on either being a cryptocurrency as well (Sovrin, Blockstack) or on running on top of a blockchain that is secured by cryptocurrency (uPort). So we still only have examples of cryptocurrency-dependent blockchains :X
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
Like others have said cryptocurrency is the means of incentivizing miners to help verify transactions and reach consensus on the blockchain. I don't think that many people would be willing to pay a large electricity bill unless they are rewarded for their contribution. Aside from the technology benefits i believe there's also social benefits of bringing people together for a common purpose. It breaks down social barriers and enables people to change their lives for the better. Cryptocurrency is the driving factor behind all of this.
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
You may try to create one smart contract with the ethereum wallet and try how the ethereum blockchain ledger works. Most of the companies asking for private blockchain to maintain their database much secured.
Hence you can see any kind of project which is similar to that and work on it.
Ethereum has a native currency and private companies maintaining private blockchains are the very definition of third party service providers, so that doesn't answer my question. As per the question above I'd love to hear whether there's an example where neither is the case.
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
You may try to create one smart contract with the ethereum wallet and try how the ethereum blockchain ledger works. Most of the companies asking for private blockchain to maintain their database much secured.
Hence you can see any kind of project which is similar to that and work on it.
Public block ledger is the one we are seeing the Bitcoin and other coins in transaction with their ledger explorer.
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. [...]
Serious question -- can you give an example for a blockchain that enables any of these use cases while relying on neither (a) a native currency nor (b) a third party service provider securing said blockchain?
Blockchain doesn't need any cryptocurrency. You also can realize projects of services, documents and goods and just data f.e. for managing passwords and documents for governments, services, insurances and more. So there is no need to use several passwords for each place, you just give out certain permissions for each service. (Just don't loose your private key 
) Blockchain is also good to reduce the need of middlesmen, for example in the logistic section. You also can organize smart home and apps in the internet of things with the blockchain. When you f.e rent out your appartement you can give out a smart key app and organize the using permissions through blockchain. So, when your custumer paid the rent, he automticly could get the smart key for unlocking the appartment and as soon as the rental period is over, your appartement is locked for him. You can buy/sell goods and other things(f.e. cars) without centered service or work as photograph/buy pictures and use blockchain to organize copyrights etc in a secure and transparent way without further instance.
) Blockchain is also good to reduce the need of middlesmen, for example in the logistic section. You also can organize smart home and apps in the internet of things with the blockchain. When you f.e rent out your appartement you can give out a smart key app and organize the using permissions through blockchain. So, when your custumer paid the rent, he automticly could get the smart key for unlocking the appartment and as soon as the rental period is over, your appartement is locked for him. You can buy/sell goods and other things(f.e. cars) without centered service or work as photograph/buy pictures and use blockchain to organize copyrights etc in a secure and transparent way without further instance. No cryptocurrency, no block subsidy.
No block subsidy, no miners.
No miners, no security.
Public blockchains exist in an adversarial environment and as such must be protected from would-be attackers trying to tamper with transaction history or double-spending assets. This protection is bought and paid for by the cryptocurrency issued by the respective blockchain.
No block subsidy, no miners.
No miners, no security.
Public blockchains exist in an adversarial environment and as such must be protected from would-be attackers trying to tamper with transaction history or double-spending assets. This protection is bought and paid for by the cryptocurrency issued by the respective blockchain.
Through the block rewards and the fees subsidized by the users. I believe that should be said to make the newbies and old users deeply understand that decentralization, security, sovereign ownership, and censorship resistance each comes with a cost, especially in times when fees become high.
Good point! I don't think this statement can be generalized though, meaning it largely depends on the respective cryptocurrency's issuance policy.
While true for Bitcoin (and other deflationary PoW-based cryptocurrencies), in the case of a cryptocurrency that stays forever inflationary without a decreasing block subsidy I'd argue that the role of transaction fees is reduced to being an anti-spam measure, adding little to the incentive already posed by the block subsidy. (ignoring other long-term effects such a monetary policy could have on PoW's incentivisation)
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