(IJCH) Understanding Cryptocurrency Better: "The Crypto Secret" - Your Best Point of Departure


  imsecret.jpg
(Base Source) Image Source

IJCH - Inside JaiChai's Head (meaning: My warped, personal opinions and musings)

From the Author

Salutations. I am JaiChai. And if I haven't had the pleasure to make your acquaintance, I'm delighted to meet you now.

Information Overload!

imfhhh.jpeg
Image Source

With the deluge of cryptocurrency news (e.g., weekly ICO's, new payment channels, competing platforms, etc.), it's very easy to get overwhelmed.

And the many, controversial philosophical arguments and countless, contradictory technical superiority claims released daily can be just as formidable; making any attempts at understanding it all seem like climbing Mount Everest!

What's the "best" cryptocurrency?

What's the "best" platform?

What's the difference between public, "non-permissioned" networks and "permissioned", private networks?

Which one of those is better?

Etc., etc., etc...

Clearly, even to most die-hard cryptocurrency enthusiasts, getting the answers to all those questions requires much research and introspection.

To the neophyte, wading through countless articles becomes a daunting, laborious task.

And after that, most newbies do not have the knowledge base or experience to discern how much of what they read was fact or fiction.

For those who are simply curious, the steep learning curve represents a major disincentive to go any further.

It's a significant barrier for entry that inhibits mass adoption; and therefore, hindering the mainstreaming of any decentralized cryptocurrency, platform, product or service.

"The Crypto Secret" - Your Best Starting Point

imastrt.jpeg
Image Source

My goal today is to lay the optimal foundation - the best starting point - from which anyone can begin their own foray into the cryptocurrency space free from the normal, time wasting, energy sapping anxiety and the useless, cycles of second-guessing that most people experience.

With this sure footing - from this ideal point of departure - everyone can confidently navigate the many nooks and crannies of the cryptocurrency space without getting hopelessly lost.

How can this be achieved?

Simple.

After being privy to the all-to-often-overlooked, hidden-in-plain-sight kernel called "The Crypto Secret", you will easily see through all the hype and be able to drill down to the crux of any new event, platform, product or service that makes its debut on the cryptocurrency scene.

Here, in one sentence, is "The Crypto Secret" - It all boils down to this one word: "Consensus".

Consensus - Cornerstone of the Whole Shebang

images (8)-640x479.jpeg
Image Source

Without consensus, the cryptocurrency space would not exist.

No cryptocurrency like bitcoin. No decentralized platforms like Ethereum. No smart contracts; which means no DAO's or decentralized exchanges.

So, when faced with information overload about the cryptocurrency space, or if trying to make heads or tails of it gets you frustrated and discouraged, or if understanding it (even in the most basic terms) tempts you to throw up your hands and give up -

Again, Remember This: It's all about "Consensus."

Who can reach consensus better (highest % accuracy)?

Who can reach consensus faster?

Who can reach consensus in spite of millions of users?

Who can reach consensus in spite of the number of untrustworthy, incompetent or malicious miners/validators?

Who can reach consensus in the face of Sybil attacks, partitioning of the network or the myriad of other kinds of DDoS campaigns?

Who can guarantee that consensus is "Fair" - the finality of transaction inclusion and the order of events can't be tampered with during the process or after the fact?

One Size Does Not Fit All

imagvcx.jpg
(Base Source) Image Source

To date, there is no one consensus mechanism, algorithm or protocol that addresses ALL of the facets of Consensus and can rightfully claim the title of "Consensus King Over All Others".

There is no "One Size Fits All" consensus mechanism that meets ALL the needs of ALL businesses and organizations.

The nature of the business, scope of services, global territory, and regulatory bodies of each company dictates which areas of Consensus are more crucial to their survival than the others.

For example, a small or elite financial services company might care more about network and customer database security than validator scalability.

A new ICO will want a stable platform that can maintain the maximum amount of new investors (user scalability).

For decentralized exchanges, "Fairness" is a major issue, a strong selling point and a great confidence booster for their present and prospective customers.

And they all want the greatest throughput capacity, the largest number of transactions per second, and the fastest completion of smart contracts.

But there is no "Silver Bullet" to vanquish the Consensus beast. When it comes to consensus mechanisms, having superiority in one area is at the cost of another.

In other words, there are always trade-offs.

"The Crypto Secret" in Practice

imagpoiu.jpeg
Image Source

Okay. It's time to do a mental temperature check.

Did the imaginary light bulb over your head suddenly turn on?

If you don't get how "The Crypto Secret" helps you understand cryptocurrency, let's try another approach.

Now that you know that: It's all about "Consensus" and that there are many facets to it, let's put it into practice...

The Curious, Average Working Joe

imagesvcxz.jpeg
Image Source

Curious, Average Working Joe:

"Hey, I heard that BTC is going to replace the dollar."

You:

"Maybe. But BTC will have to fix a few Consensus issues first - like user scalability, bloated fees and its snail's pace transaction speeds."

Or...

The Enthusiastic Newbie

ixzse.jpeg
Image Source

Enthusiastic Newbie:

"Isn't Ethereum great? I decided against bitcoin 'cause my customers would never wait for bitcoin to confirm. But my store is getting fleeced by credit card vendor fees and those crooked chargebacks! Anyway, I heard that someone came up with a better version of VISA or Mastercard running on Ethereum! Yup, Ethereum's awesome, don't you think!?"

You:

"Maybe. But Ethereum will have to fix a few Consensus issues. It only does, in even the most optimum conditions, 12 transactions per second; not to mention the hoops they have to jump through to deal with consensus validators."

Or...

The Arrogant and Annoying "Know It All"

images (12)-768x1139.jpg
(Base Source) Image Source

Arrogant and Annoying "Know-It-All":

"Boy oh boy! Bitcoin and Ethereum are doomed. The tps (transactions per second) of IOTA's DAG (Directed Acyclic Graph) and now Swirlds' HashGraph simply leaves them both in the dust!"

You:

"Maybe. But IOTA's Consensus still requires "Watchmen"; while HashGraph's Consensus requires the trusted, known beforehand, nodes found only in 'permissioned', private networks."

Continuing on...

"BTC's PoW and Ethereum's Pow/PoS consensus mechanism operates in the 'non-permissioned' public domain where nodes are not vetted; and consequently must be treated as untrusted, potentially malicious bad actors."

Conclusion: "Ladies and Gentlemen, It's imperative that we come to a Consensus!"

bvcxz.jpeg
Image Source

Although the bombardment of cryptocurrency news can numb the brain and force most people into a catatonic state of confusion, knowing that it all boils down to "Consensus", can drastically ease the anxiety.

Armed with "The Crypto Secret", you can now make targeted inquiries and avoid wasting your hard earned cash on scams.

You won't be flying blind.

And most of all, you'll save a lot of precious time, energy, sweat and funds due to FOMO (Fear Of Missing Out).

Use "The Crypto Secret" wisely, my friends.

By JaiChai

Thanks for stopping by

.450.jpg
Source

About the Author

He is a retired U.S. Military veteran. Believing that school was too boring, he dropped out of High School early; only to earn an AA, BS and MBA in less than 4 years much later in life – while working full-time as a Navy/Marine Corps Medic.

In spite of a fear of heights and deep water, he freefall parachuted out of airplanes and performed diving ops in very deep, open ocean water.

He spends his days on an island paradise with his teenage daughter, longtime girlfriend and three dogs.

 

How do you rate this article?


0

0

JaiChai
JaiChai

I'm a single papa actively enjoying my varied passions (e.g., Writing, Disruptive Technology, Cryptocurrency, plus more hobbies too bizarre for most folk). I live on an island paradise with my teenage daughter, longtime girlfriend and three dogs.


(IJCH) Blockchain and Cryptos
(IJCH) Blockchain and Cryptos

IJCH - Inside JaiChai's Head (Meaning: My Warped, Personal Opinions and Musings on Blockchain and Cryptos)

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.