Sunday question: How do you feel about crypto, tokens and blockchain?

Sunday question: How do you feel about crypto, tokens and blockchain?
Written by insideindyhomes

Decentralization has been increasing in recent years, but what is your position on crypto, tokens and blockchain? Have well-known cryptocurrencies like Bitcoin and Ethereum come to stay and will new technologies rely even more on the consensus process in the future? how do you see it?

The topic of decentralization via the blockchain, a continuously expandable list of data sets in individual blocks, is diverse and not limited to the cryptocurrency sub-area. Nevertheless, it is the digital “key currencies” Bitcoin and Ethereum in particular that are in focus and are also criticized by players due to the unwelcome mining, which “devours” countless graphics cards. But how do you feel about this very contentious topic in general?

The topic of “decentralization and blockchain” also branches out into many sub-areas and, in addition to the capital markets, can also be used, for example, for auditing, the recording of security-critical operations in information technology, e.g. in software processes.

Two different consensus methods are usually used for this purpose:

  • Proof of Work (PoW)
    • The Proof of Work represents proof of work, for example the solution of a mathematical problem. The result can be checked without much effort.
    • With this method, the excessive creation of a new block is restricted by having to perform arithmetic work.
  • Proof of Stake (PoS)
    • The Proof of Stake represents proof of the share in the network. The share of each participant is determined from duration and/or wealth and is included in a weighted random selection.
    • From this number, a deterministic algorithm selects the node that adds a new block.

In rather rare cases, the consensus methods Proof of Burn (PoB) or Proof of Activity (PoA) are also used.

A blockchain and the various application examples based on it all use the chaining principle, a chained sequence of data blocks that are updated over time and stored decentrally as a distributed register.

The various consensus mechanisms are intended to ensure security against manipulation, transparency and confidentiality as well as non-repudiation guaranteed by their digital signatures.

Areas of application on the blockchain

The decentralized and shared documentation of food supply chains, where blockchain technology can lead to significant cost and time savings, and the signing of digital goods and art by so-called Non-Fungible Tokens (NFT), i.e. a cryptographically unique, indivisible, irreplaceable and verifiable token, is another application example of the decentralized “blockchain”.

The Fraunhofer Institute for Applied Information Technology (FIT) has published a very interesting and extensive white paper (PDF) on the topic “Blockchain: Basics, Applications and Potential”.

The editors look forward to finding out which areas of decentralization via the blockchain are of particular interest to you, details in the comments are particularly welcome.

Cryptocurrencies are in focus

However, the greatest media interest still attracts the cryptocurrency such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and the Dodgecoin (DOGE), which was also fueled not least by Elon Musk, as well as the art, exchange and collectibles on themselves.

How do ComputerBase readers feel about this topic? Are you invested in cryptocurrencies yourself or do you reject this type of speculation for a variety of reasons?

Detailed justifications are also expressly desired in the forum.

From the established digital “lead currencies” Bitcoin and Ethereum to “hypes” such as Doge and Shiba Inu to small coins and tokens, which are often considered “insider tips” for “quick money”, the selection of cryptocurrencies is now unmanageable, the website specialized in prices and market capitalization CoinMarketCap now lists more than 10,000 assets.

Are you interested in coins?

Which coins does the ComputerBase community have in mind and which cryptocurrency may the readers of the forum have already invested in?

Participation is expressly desired

The editors would be very happy to receive well-founded and detailed reasons for your decisions in the comments on the current Sunday question.

Readers who have not yet participated in the last Sunday Questions are welcome to do so. Exciting discussions are still going on in the ComputerBase forum, especially regarding the last surveys.

The Last Fifteen Sunday Questions

You have ideas for an interesting Sunday question? The editors are always happy to receive suggestions and submissions.

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