Archive for  June 2017

Home / June 2017
1 Post

When I first heard of Ethereum I instantly had a gut feeling that this was going to be something huge. And I still think it is. Honestly, I think the price of Ethereum will easily surpass that of Bitcoin in the long term. The most interesting question for me will remain: What is the next cryptocoin that has some revolutionairy ideas? Of course, the cryptocurrency market is all speculative, but I only put funds into technologies I understand. Bitcoin exists because it was the first coin making it possible to send funds through a decentralized, idependent – and to a certain extent anonymous – system. Ethereum went big because of its smart contracts, making it possible to store executable code on the blockchain.

But what comes next?

If you take a close look at all the available cryptocurrencies, there are plenty of clones. They might be successful, but their growth rate considering their price is rather limited, because there is nothing unique or different than the established cryptocurrencies. Coins like Litecoin or Dogecoin will probably converge to a fraction of their “original” examples.

There is one coin that drew my intention: Stellar Lumens. I tried the Stargazer wallet (that is available for different platforms, also mobile btw), bought some Lumens and with a friend we sent us some Lumens back and forth. Within seconds the funds have arrived – amazing! Let’s a have a deep look at the core aspects why I think Lumens should be your next coin to have a closer look on:

  • Stellar has implemented a whole new consensus protocol. It’s called FBA (Federated Byzantine Agreement). Have a look at the Google Talk of David Mazières who explains it and compares it to other consensus protocols. (for example PoS that will arrive in Ethereum)
  • Stellar is inflationary and comes with a voting system. As a Lumen holder you can vote for another address, there more Lumen you have, the more your votes count. The funds brought in through inflation will be awarded to those addresses, which effectively means no resource wasting for mining. In order to “mine”, you have to be engaged in making Stellar better and spread the word about it. How cool is that?
  • All Lumens on the market are existent, they will be given in exchange for improvements to the projects. This is a smart move, especially because it gives political unity to the core technology of that decentralized system. This results in less forks and more stable prices.
  • The core network is maintained by experts, whereas end users connect to anchors of that core network. That happens to all decentralized currencies sooner or later, so it has been build in by design rightaway.
  • Stellar comes with a feature called “Trustlines”. By attaching to a trustline, you can transparently trade with other trusted currencies through a mediator service (for example you can accept BTC that will automatically converted to Lumens and vice versa).
  • There is some serious support from the economy. In fact, Stellar is so simple to integrate that there is a huge list of support in the company list already.
  • Stellars genius main developer, Jed McCaleb, did not just fork Ripple as many people claim bitterly. He wasn’t confident with the development direction Ripple took, so he left in order to build Stellar. Read more.
  • Stellar is there to replace bitcoin as a payment currency. It’s not really competing against Ethereum.

Let’s see how this going in the future. I bought a fair share of Lumens, Stellar convinced me entirely.