RE: Why Smart Media Token (SMT) will fail.
Hi, nice post! Though I have a different opinion (I personally think SMTs will actually succeed and be useful), as outlined in my post here I'm glad to see other views as well.
As for the STEEM blockchain being able to hold all of this data, it's well known that STEEM is one of the fastest and largest blockchains out there— it regularly processes more data than Bitcoin or Ethereum, and puts out a new block every 3 seconds (as opposed to Bitcoin's 10 minute blocks).
I'm sure @steemit and @ned have it all figured out as well, and I believe STEEM will be able to cope with the extra data load. Additionally, I think SMTs actually helps and streamlines the ICO process, making it less "blurry" and setting out harder guidelines for ICOs.
Since most or all of the code is open-source for SMTs, I believe, anyone or any authority can check to make sure the tokens aren't scam.
Be prepared for a tsunami of s**tcoins!
Given the $1 price tag associated with creating your own SMT, I'm sure we will see a bunch of poorly created or hastily slapped together tokens. However, the point of the technology is to allow anyone to create their own token. From there, some will succeed and others will fail; it's just natural selection.
We are looking at the possibility of having millions of people creating their own tokens. It will be messy if it reaches that stage.
You're right, that will be pretty messy, and will possibly happen. The point is that, the technology behind SMTs will empower just a few of those tokens to succeed above the others. And those few tokens will probably spark changes in the industry.
Though huge batches of low-quality authors might create their own tokens for their websites, high-volume and high-quality creators like The New York Times might even adopt this SMT technology to create a token such as "NYT" to reward their viewers with.
The bottom line is that the technology now exists for things like this to occur. It's up to us, and up to authors like us across the industry to figure out what to do with it.
Though I think the idea is comprise, myself I have an amazing idea on what to do with it and it not about creating contents.
Here I have written the possible questions people will be asking.
https://steemit.com/smt/@rexusmo/smart-media-tokens-questions-in-the-loop
Thank you for that well worked out comment. Do you have any ideas what could speak against the success of SMTs? For me it is also very hard to come up with possible problems which SMT will be facing, but it could well be that we are missing something here.
I'm actually not too sure! I think @ned and the @steemit team have thought of mostly everything.
I think the initial adoption curve could be pretty slow. I'm sure for the low $1 price many ICOs and coins will spring up from eager Steemit users, as you said, but not all of them will actually be useful to the community.
Otherwise, I think pretty soon some amazing SMTs could come up. SMTs can let bigger companies and publications like The New York Times monetize literally every interaction on their site. If SMTs are used widely on the Internet, it could spark the death of advertisements and paywalls.
I think SMTs will be very good for STEEM and for the average internet user as well!
From a social experiment , monetizing the comments or user engagement may back fire. People are overlooking social behavior !! How people interact would be different and it may or may not be good.. Some earlier experiments done by yelp ,with the same model actually failed. People were repulsed by "payment" part of it.
People were repulsed by "payment" part of it. I think that it a very good point. What is the psychological aspect of this? Thank you for that comment!
Yep, it's hard not to find a good conclusion on SMTs :)