A lot of people in the cryptocurrency space hate all the altcoins and wish we were all back to One Coin To Rule Them All! But things look less and less likely to go in that direction. Even with the bear market we're in right now a lot of altcoins are actually surviving. Ethereum Classic is thriving, IOTA isn't going anywhere and Cardano is about to take over the whole world!
However, for those of us that love cryptocurrency not simply because we hope to ride the wave and get that lambo, but more because we hate the banking system and believe in separation of Economy and State are altcoins good? Well, some argue that any coins other than Bitcoin interfere with the expansion and success of Bitcoin. Is that true? Well, maybe and maybe not...
We all know that if your money is in Cardano, its obviously not in Bitcoin at that moment. However, interoperability could make it so all cryptocurrency (the legit kind) are capable of fluid movement between the various platforms and thus allow them all to work as one large financial system. This is similar to financial constructs of which there are many and they are exchangeable. That could be very good and make the FUD around crypto go down a lot because owners of coins will know that their currency is highly transferable.
But is there a downside to interoperability? For maximalists that believe in only using Bitcoin, interoperability might be thought of as nothing more than a distraction from Bitcoin. However, there is another issue: inflation. One of the reasons Bitcoin is such an asset to the world is its 21 million maxed out supply. When we have mined all of them, its all about transaction fees from then on out because we can get no more out of the system. This is wonderful news to anyone that furiously pays attention to their annual loss in wealth as the government goes on printing away new money every day with no regard for how it affects you.
So where is interoperability in all this? Essentially, interoperability accommodates the creation of more and more blockchain currencies. Every single time a new blockchain enters the space they add millions or billions of coins that the public is suppose to poor their money or value into, spreading thin the value of the previously created coins. In essence, the creation of another coin is very much like printing more money and has an inflating effect on the whole digital currency ecosystem.
But is this always a bad thing? Not necessarily. Yes, inflation is bad and we do hope for cryptocurrency to succeed so we want Bitcoin to succeed. But here is the thing, on the road to freedom from banking institutions (trying to provide everyone with a beneficial option to be unbanked) and independence from governmental currency manipulation we stumbled upon a really cool thing by accident. The death and rebirth of the corporation.
The many altcoins are transforming the world's way of doing business, and what is really changing here is the concept everyone has of corporations. First we had greed-focused corporations, then not-for-profits entered the scene, but then hybrids such as social companies that add value to the community and not just make money joined in. Why? Because we're sick of greedy corporations and want to see organized humans do great stuff just to do great stuff. What's that? The DApp.
You make a DApp and put it into the community. You're not a profit-making business operation, you're a stakeholder in a potentially high value software. By simply taking 5% or so of the total asset value in the network, the creators of the software have created for themselves an ecosystem in which they can buy and sell stuff and right from the beginning have that lambo money. Interoperability will be the key to assisting developers in creating the revolutionary new opensource corporations of the world. But they won't be like the old corporations, at least they shouldn't, and while we own a portion of them, we would have no control as individuals in where they go.
The trick to making this work in a good way is by developing community standards for what fair decentralized platforms are, how much creators of that platform deserve to receive from the beginning and other variables that can be worked out over time. Is 5% of the platform's wealth acceptable compensation for developers or should we as a community demand less than that from them in order for us to adopt their work?
Please express your thoughts in the comment area. And definitely hit that upvote and the resteem buttons my friends!