At the rise of Internet, users mostly consumed information than created content. In 1999, the whole picture changed while a new concept of Web 2.0 evolved. From this point, a global community stepped in and contributed to generating content. Wikipedia, the world’s largest encyclopedia in history, which “compiles the sum of all human knowledge” is a good example of a co-created and crowd-sourced effort.
Early days of Bitcoin seem to resonate with the early ones of Internet. Given that users can spend and trade Bitcoins, development of additional services is somewhat limited. While there is no infrastructure for users to create content on their own, they are mostly uninvolved or simply react to the changes in prices. What is necessary is a sort of decentralization, which happened to Web 2.0.
How does it work?
Blockchain technology is an innovative concept. It enables the creation of trusted decentralized currency that can’t be endangered or controlled by anyone and is more efficient whereas the current monetary system is a subject of manipulation. To take the plunge, it is necessary to create a platform that will enable the development of different services based on blockchain technology which, in fact, each Cryptocurrency 2.0 project is aimed at. Via creating a public ledger, one avoids putting his data in the hands of companies and keeps it safe and available. Instead of sending photos to iCloud with a high leak risk, you can place them on the blockchain and be the only one to have an access.
The rise of Cryptocurrency 2.0
There are several solutions claiming to implement next generation cryptocurrency system. Ethereum described as a “decentralized mining network and software development platform rolled into one” is a good example. Based on a concept published by the 19 year old Vitalik Buterin, it is aimed to create a distributed application software platform. Recently, Etherium team managed to collect 15 million dollars to pay for the development expenses becoming the second most successful Kickstarter project ever. The last one may seem interesting, considering that they are planning to develop decentralized Kickstarter application. Therefore, Kickstarter might have invested in its future demise.
Cryptocurrency 2.0 sounds an exciting concept though its possibilities are not yet fully understood. If YouTube presented in 1993, it would have seemed both unrealistic and impossible at that time. To fully appreciate what Crypto 2.0 offers, we need to wait for the first tsunami of innovation to pass. There is much more engineering left to do, and many markets must be gained. The struggle will be fierce and interesting. And who knows what will cost Facebook and YouTube in Crypto in few years.
By Vasilije Markovic for CEX.IO