Is there a current feasible utility for cryptocurrency?
Bitcoin is the first decentralized digital currency that Satoshi Nakamoto envisioned, ‘’a purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.’’ Ethereum is another cryptocurrency that supports a modified version of Nakamoto consensus via smart contract-based transactions. There has been a rising awareness and debate on cryptocurrency and blockchain. However, currently cryptocurrency has no real utility scenarios that have mass adoption applications.
An article from Coindesk, ‘’Utility: The Defining Word for Tokens in 2018” highlighted that 2017 was the year of the digital currency with ‘’more than 1,000 different digital tokens’’ presently. This inevitably boil down to ‘’the biggest common denominator in the argument around cryptocurrency is whether the tokens in question truly do have an underlying utility’’. Unfortunately, the fact is most tokens do not. As cited from the article ‘’ Bloomberg reported that of 226 ICOs and token sales analysed, only 20 of the corresponding tokens were actually used in the running of their networks, demonstrating utility of some sort — that’s less than 10 percent’’.
Ultimately, utility is a crucial component for cryptocurrency to be effectively adopted by the community. With so many tokens on the market, tokens that have a legit utility will be successfully adopted, while tokens with no utility and do not possess any value, will eventually get phased out.
Usechain is creating its own blockchain and algorithm consensus, Randomized Proof of Work (RPOW), combining with features such mirror identity protocol, network sharding, smart contract and virtual machine IVM, etc, to create a decentralized ecosystem. This provide a platform to integrate UST tokens with different types of dapps to promote real use applications. Usechain is focused on developing a blockchain that will fulfill the purpose of utility to solve the many problems that exist in our financial and identity system. This will lead to successful mass adoption in the society.
References: https://www.coindesk.com/defining-word-tokens-2018/
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