Anons first Crypto. Post #5

I've been investigating cryptocurrency and the decentralized web since the start of May. This blog is an avenue of documentation and expression of my experience.

I mentioned the sheer scale of the world of cryptocurrency in one of my earlier posts and I wanted to expand on that, this posts subject will be what scalability is and its importance to thriving blockchain technology. When I first started looking at different ERC tokens I noticed the change in market caps being quite significant and didn't quite understand how subject to change or volatile/reactionary the markets are to single snippets of news and announcements, this was all at a time where functions like burn rates or token lockups were absolutely foreign to me so it was all quite an experience. 

So what do I think scalability is, well without opening up a search tab and getting a literal definition, oh wait I might do exactly that. 

"Scalability is a characteristic of an organization, system, model, or function that describes its capability to cope and perform well under an increased or expanding workload or scope" as defined by Adam Hayes, Investopedia, 13/6/2020

I find this quote to be very effective at communicating the direct relation between cryptocurrency/blockchain and scalability of technology because it looks at the much larger picture of scalability specifically its ability to cope or as I like to think of it pivot as apposed to traditional organizations which find themselves excelling at one particular thing for an indefinite amount of time. For example, airlines have a proven track record of being good at flying planes and adapting to the development of new technology in their sector however their ability to scale up into different areas of air travel IE space have been incredibly slow in comparison due to incompatibility or dare I say inability to scale with their current technology, it has effectively bottle necked requiring years of R&D to expand and ultimately other companies with the sole purpose of space travel will beat them every time.

In contrast blockchain technology has moved forward in leaps and bounds in the last couple of years, starting from BTC and exploding into a thriving world of different applications and use cases, this is due to its ability to pivot we see this all the time with hard forks and open source code to build and expand upon ideas. With more and more pre-existing companies partnering with chain developers and building tech in the blockchain space such as Disney, IBM, Amazon and Walmart just to name a few. We can still expect huge growth and personally I don't think we're even out of the infancy of crypto adoption. This to me is why scalability or scope of a token or its company is one of the first things I will look at. I believe things like p2p transactions and video game currency systems will be some of the earlier implementations we'll see in the next few years (some are live already!). These will hopefully be the building blocks of future defi systems of the world to come. I believe companies in the blockchain space that engineer themselves towards compatibility and ease of access will see some of the earliest and strongest adoption by the masses. 

AFC