What is the next generation of cryptocurrencies?

What is the next generation of cryptocurrencies?

By Sofiane Boukhalfa

Today’s major cryptocurrencies have finally entered the mainstream. BitCoin, Ethereum, LiteCoin, and many others are creating a vibrant ecosystem of cryptocurrencies. As the space continues to evolve, innovative players are tailoring their approach to differentiate themselves from competitors and gain momentum and acceptance. The strategies these players have adopted, which range from backing up their cryptocurrencies with tangible assets or commodities, to the emergence of decentralized ICO platforms, all make use of the opportunities unlocked by blockchain technology.

New cryptocurrencies backed up with tangible assets:

One factor many critics cite as a potential risk with cryptocurrencies is that they are not backed up by tangible assets, as many currencies around the world have done in the past (most often with gold). This augments the price volatility and the potential risk to crytpocurrency holders of their cryptocurrency’s value deflating.

Sparkle Coin, Inc.

Some innovative players have addressed this risk directly. For example, Chicago based Sparkle Coin, Inc. introduced its eponymous cryptocurrency in September 2017 that was described as being the first cryptocurrency of its kind to be backed by diamonds.

Sparkle Coin is a hybrid providing rapid adoption through mining of Sparkle Coin as well as long-term sustainability through minting. Each Sparkle Coin is backed by $5 worth of GIA certified diamonds which can be immediately redeemed the day after the Sparkle Coin ICO in increments of $500. Diamonds are a safe investment, as they have been shown to steadily increase in value over time more than other assets such as gold.

Victor Wong, founder and CEO of Sparkle Coin, Inc., stated in a press release released September 5, 2017:

“Sparkle Coin bridges the gap between cryptocurrencies and traditional business by developing an economic ecosphere comprised of an asset-backed cryptocurrency, transacted through a powerful currency exchange, with an outward facing cryptocurrency payment gateway allowing virtually all merchants to accept cryptocurrency though an online shopping mall or directly on their own websites.”

Bilur

Sparkle is not the only player seeking to reduce risk by backing up their cryptocurrency to a valuable asset. Bilur is backing up its value with stored physical energy, tying in its price to that of energy commodities. Bilur chose to use energy commodities to back up its cryptocurrency as energy is a commodity that will always be needed by humans.

According to Steemit:

“1 bilur equals 1 TOE (Ton of Oil Equivalent), which in turn is equal to around 11.6 MWh of energy. By definition, for bilurs to be issued, oil or other energy commodities must be purchased first. For the initial issuance, 1 million barrels were purchased, which entitled the issuance of 52.9 million USD worth of bilur (154,297 bilurs).”

Additionally, the Bilur team touts the opportunity for non-professionals to become active investors in the energy commodities market.

Komodo

Komodo is another innovative player targeting the needs of many to have a decentralized ICO platform. This platform enables coin developers to “launch a transparent coin offering while maintaining investors’ privacy through Komodo’s built-in privacy features. For the first time in crypto history it’s possible to issue and distribute native cryptocurrencies without a trusted third party.” Effectively, this means that anyone can raise an ICO anonymously using Komodo’s platform. Capitalizing on the desire for privacy in an increasingly connected world, Komodo has already partnered with strategic partner Monaize to use this technology.

Future possibilities:

These are just a few examples of the exciting possibilities next generation cryptocurrencies will offer. With government institutions (such as the Bank of England) now realistically thinking about the future integration of cryptocurrencies into the national economic infrastructure, it will be the collaboration between regulators and innovative players like Sparkle and Komodo that will determine what form the 21st century economic system will adopt.

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