What is a cryptocurrency?

There are some cryptocurrencies that aren't built to be a "buy-a-coffe for cryptocurrency". They have another purpose than a peer2peer transaction of "money". They have one thing in common tho, they are using the same concept of storing it's transaction history. It's called a Blockchain. In this post I'll mention some currencies that is not a "buy-a-coffe for cryptocurrency", and why I think that they are interesting.

The Blockchain

You can't deny that the name "Blockchain" sounds so cool. But what is a Blockchain? The Blockchain is basically a database that keeps track of all kinds of "transactions" that has been made in a cryptocurrencies network. Because it's a decentralized database it is a good way of validating things. Because all the nodes and "wallets" have all information in the blockchain database.

Let's talk about: "Smart Contracts", "Decentralized Super Computer" and "Verifiable Data"

To start somewhere, Ethereum. Most of the people that have discussed cryptocurrencies have heard of Ethereum other than Bitcoin. Ethereum is probably going to impact more than Bitcoin is going to do. Because it's not a "buy-a-coffe for cryptocurrency". The reason why, is because we simply have central banks, and central banks doesn't say: "Yeah! Lets go over to Bitcoin!" They want to control the inflation in the country and so on..

Ethereum is a "decentralized platform that runs smart contracts.". It's up to you what a smart contract is. Remember that Ethereum is a platform to build decentralized applications on. My thoughts about Ethereum is that more and more companies in the future will develop their applications towards Ethereum. Ethereum has it's own Blockchain database which contains all the "smart contracts" and is executed on the Ethereum nodes. Ethereum could be used in the same way as Bitcoin, but it has other features as well.

Golem is a "Golem is a global, open sourced, decentralized supercomputer that anyone can access.". Well not anybody, you have to pay for the service of course. Golem is a Token on the Ethereum Blockchain. Interesting thought here is that anybody that have spare resources could setup a node that helps with calculations and get paid for the work. Payment is done in GNT if I'm not mistaken. Let's say that you are running a public / private cloud with a lot of unused resources night time. Why not fire up lots of VMs to contribute with calculations. Tho I think at the time, there is probably more resources in the network then whats being used. For future use, this may actually have a purpose.

Tierion is a "A New Standard For Verifiable Data.". Like Golem, Tierion is built upon the Ethereum platform. Tierion is so far only in beta. But it has huge potential to become something in the future. It aims to be a system to store an entry in the Blockchain which you could validate against things. Example: We could use this system for personal IDs. Your DNA in a hash that is stored in the Blockchain which is linked to your passport which also is stored in the Blockchain. Another example, we could also generate a hash based on a files content and store that in the Blockchain, and in that way have a program which checks the Tierion system if this file is legit or if it's scam. They have some cooperation with Microsoft and Philips atm.

Conclusion

There are a lot of currencies with different purposes, some are scam some real. I have some faith in above three alternatives that they will succeed in the future. Then again, the cryptocurrency I have most faith in is Dash. It's a "buy-a-coffe for cryptocurrency". 2018 will be a very interesting year when it comes to cryptocurrencies.

Thanks for reading and I wish you all a happy 2018!