Why There Is No Need To Fear The Kodak Coin Or Any Other Corporate Coin (Facebook Coin): Steemians Rejoice
For those who missed it, Kodak announced this week they are getting into the blockchain game. This had an impact upon the stock which doubled on the announcement. Kodak is now going to issue a token that it will use as the currency on its new platform which allows people to upload their pictures while also scouring the Internet to see if anyone else is using them.
This would have been a wonderful plan about 10 years ago. Today, not so much.
The challenge these corporations have is the decentralized horse has left the proverbial barn. I believe, that while we are at the early stages, we are already seeing the power of blockchain unleashed.
While some might take exception to this, I believe for something to qualify as a blockchain, part of the equation is that it is decentralized and open. That is what makes it revolutionary. That is what spurs innovation. Without these two components, we are simply left with a database.
It is also the reason why I do not give Ripple high long-term prospects. It is a controlled, centralized system. Again, what is revolutionary about that. The idea that you are "blocking and chaining" might have some effect, as long as you do it. Of course, what is to say they have to carry on with that method?
This is the same challenge we face when looking at countries issues their own tokens. Like the corporations, governments are not about to cede control which occurs when something is decentralized. Hence, we are basically operating under the same system. As one candidate said, like putting lipstick on a pig.
STEEM is revolutionary because it is decentralized and open. Yes, the blockchain can be forked which appears to be the case with the Vice Token. However, it is also the same thing that provides the power against corporations with a lot more power and money. In truth, they cannot take it over. At the same time, they cannot stop it. People all over the world are responsible for running the system (called witnesses). They can be voted away at any time if the community desires that. Like with hacking attacks, there is not an area where a "competitor" can pinpoint. That is the power of decentralization.
We are going to see a lot of corporations embrace "blockchain". Of course, we are going to have the scams like Long Island Blockchain Company where they are just adding a word to the name. At the same time, we will see legitimate corporations getting involved with this. Do not be fooled. What they are creating is not revolutionary.
Last week, Mark Zuckerberg made news when he said it was his goal this year to fix Facebook. One of the areas he is paying attention to is cryptocurrency. This sent shivers down the spines of many people on here. To start, it isnt likely that Marky Mark is really concerned, at this time, about Stemmit. Multiple billions compared to 600K users is nothing to worry about. Plus, if you really look at it closely, Steemit is modeled to after Reddit. Let's be honest, Facebook has a ton more features that promote interaction than are on here. It will be a long time before we see Facebook in Steemit's cross hairs (if ever).
That does not mean Steemit cannot be great. Reddit has 250M daily active users. So what is to prevent them or Zuckerberg from pulling the plug on this place by issuing their own crypto?
The answer lies in control. They are not about to give that up because it also means giving up money. These two entities are making a fortune under their present system. To turn to a system like Steemit, requires giving up control along with profits. I cannot see that happening.
In addition, the innovation is not there. Facebook came up with some amazing stuff in the 13 years it is around. The problem for them is that a blockchain will come up with the same level of innovation in a few years. Facebook and Reddit have paid employees who are hacking away at code. These people are good at what they do yet it is their job. They have certain hours they keep which limits the breakthroughs.
In short, a centralized system will never compare to a decentralized one when it comes to innovation.
Steem has thousands of people hacking away at code designing all kinds of things. There is even uptopia.io which was created to lay out basic code for developers to take and use for their own creations. You do not have this at Reddit or Facebook. Everything is closed and controlled.
While Reddit might be far ahead of Steemit at this point, the gap will close quickly. Reddit is on a bicycle while Steemit is in a Ferrari. That is the best way I can describe the difference in innovative power between a centralized versus a decentralized system.
So the next time you hear about a company like Kodak with their big blockchain announcement, remember that it is a centralized system. Then also ask yourself, could or is something like that being done on an open blockchain? If it is not, chances are it will be.
We entered the age where the power of the establishment is an illusion. What is really power is when the abilities of hundreds of thousands of people are unleashed on a blockchain. On steem, we are moving towards realizing that reality.
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I agree with you. In the 90s, all a company had to do was add ".com" to its name and it was rewarded with a lofty valuation, but eventually, most of the companies failed. Nonetheless, the internet itself not only survived, but transformed the world's economy and how business was done. Some companies like Amazon survived the meltdown and emerged stronger than ever.
The companies that truly put blockchain technology to use in a way that harnesses its strengths and adds value will be long-term winners. I think Overstock.com's CEO gets that and is appropriately positioning his company.
Disclosure: Long OSTK
Interesting news! Thank you for sharing.
I totally agree, i just would't bet be so bullish with Steemit platform (yet).
There are many problems it needs to face, such as, the reward pool distribution and people usability. In the second aspect, people will take care to educate new users, but in the first point, there are articles that makes... oh, lets breath $2000 SBD and have 50 views, and anyway, that stays in the trending page good content is still invisible, and its easier for minnows to get discouraged than involved with the platform.
Rigth now we are experiencing (in my opinion) a big jump from bloggers to the platform, with the promise of money and descentralization, but, Steemit is deeply centralized in terms of its reward pool, and will get worse and worse over the time becouse of its structure.
Anyway, i totally agree with the KODAK crap, and so FB... this previous issues maybe will be fixed by SMT, and @ned, already promised that.
As always, thanks! great content!
D.
I agree with some of the problems you alluded too...however, that is Steemit, while the flagship app, not the only one (not going to be the biggest one in my opinion). D.Tube and eventually Zappl also could be major apps on this blockchain.
SMTs are really going to change things...I am very excited to see them that comes about.
Zappl! i'll take a look... :) i'm also excited by the SMT's... just courious... do you know how exactlly they will relate with the STEEM coin? The whitepapers says: if the demand in A increase, also the demand in B (steem) will increase... but i dont actually get how, becouse for that to happen, SMT's must depend on steem in the market, which is not the case.... im sure im missing something!
Always a pleasure, @taskmaster4450, keep it up with great content!
D.
I concur with you. In the nineteen,s each of the an organization needed to do was include com" to its name and it was compensated with a grandiose valuation,
however in the long run, the majority of the organizations fizzled. In any case, the web itself made due, as well as changed the world's economy and how business was finished.
A few organizations like Amazon survived the emergency and rose more grounded than any time in recent memory.
The organizations that really put blockchain innovation to use in a way that saddles its qualities and includes esteem will be long haul victors.
I believe Overstock.com's CEO gets that and is properly situating his organization..
Carry on dear......
It will be interesting to watch it all get sorted out.
Trying to explain Steemit to a few friends was crazy. Some of them understood right away and others are more in the facebook mindset.
Zuckerberg is in a position to make a true change . If he can help educate people on their contributory worth which is what makes Steemit truly special.
The corporate moves like Kodak's are encouraging. I have a little warmth in my heart to Kodak. They were a visual revolutionary! If they can help the blockchain "movement"in the same way, it would be incredible!
This is a great lesson in differentiating between centralized and decentralized blockchain. The general masses need to stop feeding on the hype of 'blockchain' and really dig deep into what it truly means to be a blockchain technology.
Best quote from my man, @taskmaster4450:
Excellent article. You are absolutely right. And the drop in the price of Ripple is a confirmation. Corporate Crypto currency is doomed in competition with decentralized. I believe in Steem for $ 100
Corporate coins, those to be issued by real sector corporations, and their blockchains are a good news for crypto. Every new corporate blockchain is a move that makes the crypto world steps closer to the real economy.
Blockchain can help people without privileges do value-adding things, from blogging, like here on Steemit, through making various products, generating services and many other. They can now earn from the community-based blockchain initiatives and use blockchain as a mean to promote themselves and their work.
Lots of talent never get a chance, just because they sometimes lack social skills, or fail to impress recruiters at first sight. Blockchain does not know for privileges. And with time, blockchains will become even more sophisticated.
Corporations are starting to realize the power of blockchain and will continue to embrace it as long as it makes them money. They do not care about the meaning behind it or how big it truly is. Steem is a Ferrari that is not stopping anytime soon, it is constantly getting updated and there is just higher quality content here than on Reddit. It's wonderful to see corporations embrace blockchain but they don't truly understand it and only see it as a means to make money. They are decentralized for a reason there is no one person controlling everything rather a community. How long do you think it will be for companies to embrace cryptocurrency and accept it as payment such as Monaco, eth, steem, ltc, btc, etc...? Keep up the amazing content, you have given me inspiration for my next post :)
The corporations might start taking crypto here shortly...but that is a side issue. How to get paid isnt really their problem...it is blockchain. In fact, many are expecting a big announcement by Amazon in the beginning of February regarding BTC and ETH (it got the domain names from what I read).
In the end, with DAOs coming on-line in the next few years, you will see the traditional corporation hit...many industries will feel the power of blockchain....some will benefit, others will be destroyed.
Facebook is nice but steemit is amazing. There are so many adds on Facebook and it is really hard to search for anything unless you know a persons name. Steemit is very easy to search topics and getting paid to post comment and vote is great but the people on here is what makes steemit superior. So many great people writing great stuff.
Indeed when I heard Kodak issuing their own token I had the same reaction of bleh.
It's exactly how Nokia and Blackberry behaved during the advent of smartphones and they did not adapt early and when they did it was far too late with Apple and Samsung and other android phones already had Lion share of the market.
Same with governments and bankers trying to stop the winds of change by creating their own Cryptocurrency and tokens and centralization. I already sold all my Ripple and is a believer of the decentralized model of the block chain.
Although we have a different opinion on Facebook and Steemit as I believe that Steemit will do better than Facebook because of all different applications being created for it in the same blockchain of rewards.
I like the analogy of Reddit being a Bicycle and Steemit is a Ferrari that it will not be too long that we show that we are faster, better and more powerful than Reddit.
In the end there will be a planet Steemit gifteconomy going on .
Yes I think that Steemit will close the gap quickly on Reddit. In the end, Reddit has little to offer. Facebook is more formidable thought.
That said, my point with Facebook was at the moment. I do not know what the future holds and someone might develop an app on here that has many of the features of FB.....
Until then, FB isnt really on the radar....in fact, a write by the developers I read from the Spring talked about Reddit when they are discussing the communities idea.
Thus, I think that is the target...for now.