Beginner Analogies for Digital Currency
Understanding the bigger picture...
Most people think that “Bitcoin” is the only digital currency out there. They simply don’t know that there are hundreds of completely different coins and as many online communities supporting them. This lack of digital-currency-exposure makes it very hard to describe the massive and growing network that we are part of here. “Ever heard of Bitcoin?” is a kind of staple starter question for conversations describing the premise of the "STEEM" currency and the social media site; "Steemit" that taps into it. But I feel like we need better examples to articulate the bigger picture…
So, I’ve been meddling with some analogies to describe just a couple of digital currencies on the market today. This list actually began as an email to friends and family members who had questions about this stuff. Eventually I realized (that the email was way too long) but also, what if I post this on Steemit and see if you all can help make these analogies better??
This (below) is a ROUGH LIST in progress of just three currencies. Please feel free to suggest edits, corrections or even entirely different comparisons! So let’s begin…
"Ever heard of Bitcoin…?"
Bitcoin is like AOL
AOL (American Online) was essentially a billboard for the world wide web beginning in 1991. The "gold standard" of the web. Globally, people were introduced to the premise of the internet through AOL and those fun looking cartoonish graphics. AOL had a huge monopoly on web-access because it was first on the scene and became such a household name. However, AOL wasn’t built for much utility beyond that. It was a big 'ol window, but didn't know where to go once it got outdoors (so to speak). Similarly, Bitcoin is like everyone's introduction to digital currency. It's recognizable, cartoonish even, but it actually does not function very well. Bitcoin is actually very slow (by comparison) in processing transactions... you could say it’s a lot like dial-up internet. Still, it’s the OG digital currency and will likely remain a gold standard for years to come.
Ethereum is like Amazon
Amazon.com arrived on the scene in 1994. Amazon had (and has) utility. It took advantage of this global internet network and used the web to advance an online marketplace. People could log on to the internet and tap into Amazon to improve their business in ways previously thought to be impossible. This disrupted industries at a global scale. Ethereum is doing that today... It's a smart digital currency that allows stuff to piggy-back on top of it. Apps like games, financial transaction tools, data storage and dozens more that are growing everyday.
STEEM is kind of like... TESLA? (Maybe?)
Creating a brand new automotive company in the 21st century seemed absolutely crazy. Ford, GM, Toyota and others are just so dominant. But Tesla seems to be rewriting the rules with respect to what a "car" company can actually do. Cars were just the elevator pitch (just as Steemit is for STEEM)... Tesla is changing the way we think about products and the systems required to make them function.
Tesla is also using the internet in unprecedented ways for the purpose of advancing the quality of their products. Elon Musk (CEO of Tesla) is a big believer in BIG data. His company uses the web to compile 100 million miles data of roadways around the globe. In fact, Tesla currently gathers more map data in a single day than Google has been able to accumulate since they began recording streets manually in 2009. (Source.) Today, Tesla is tapping into this massive data pool as they engineer batteries for houses, solar roof shingles, modular architecture, rockets, space stations and other applications. Their mission can permeate all sorts of different disciplines beyond a box on four wheels.
STEEM (a very new digital currency) is the new kid on the block(chain). Oyy, sorry, I couldn't help myself. Much like Tesla’s vision for energy and infrastructure; STEEM preaches an incredibly efficient and wasteless global network. Unlike Bitcoin, STEEM can process global transactions in just 2-3 seconds. This efficiency is why it can be tied to social media applications (like Steemit) where an "upvote" or comment needs to be processed and updated extremely quickly. Like Tesla vehicles, Steemit is just the elevator pitch for something much grander in scale. In the future, STEEM will have dozens, hundreds, thousands(?) of applications built off of it that permeate all kinds of disciplines.
Very good post friend! I used to say that ethereum is like a big database wher you can do operations with bitcoin.. Now i have another great persective to explain all this new technology.. Thanks!!!
No, it's actually a virtual machine with blockchain :) the VM allows the contracts.
a very helpful post !
hmm.. new kid on the block chain is good ;)
that other Thing .. rumors have it - it hasn't made moneyyy
Steem did ^ ^
huge break through!
perfect examples of our crypto universe. Yes, Steem is just like Tesla. Full of future features. And Steemit is it's cheer crowd with brilliant ideas and proposals. Great article. Upvoted.
How about comparing Steem to Kindle, a site designed for instant access to endless amounts and any kind of digital content. Words and images, in book form, originally, but really ideas to gather around. Plus, Kindle quickly efficiently converts content into monetary value making older models (bookstores and newspaper boxes) seem hopelessly out of date - and out of touch. The only thing about this analogy is that we still think of Kindle as a place to choose and acquire books. But pull that idea inside out: Kindle (like Steem) is a large platform that enables and encourages valued connections and transactions to take place.
Does that work at all?
Not a bad comparison! However, I feel like Steemit applies more to the Kindle analogy. Not as much as STEEM. This is a tough exercise...!
Right. Steemit, not STEEM. Thanks. (Ugh. So new, still.)
That's okay! It's a good analogy in the sense of Steemit... a disruptive new model of reinvigorating mobile / online content. STEEM (the currency) is trickier, because Steemit is just one way of using tapping into it. One day soon, there will be hundreds of websites that plug into the STEEM economy. I say Tesla because it's comprehensive kind of company with an open-source philosophy... they're not as much in the business of building automobiles as they are in the collecting / sharing of information.
I think most comparisons were on point, but the one with Tesla felt a little far-fetched. Great post though! I'm all the way on the ETH wagon.
Yeah definitely. That's where I'm struggling... Tesla felt out of place here. Do you have any suggestions? This post is a work in progress!
Perhaps ETH (or blockchain tech) is like Tesla in terms of the dynamics of the underlying system. In this sense, both Blockchain tech, and Tesla seek to build a culture of automation that reduces human error and focuses instead of trust-less systems.
Example: In theory, if a self-driving car crashes, it was human error, as the machine only does what it is programmed to do. So you don't need to "trust" your car, it does what it's supposed to do, nothing more, nothing less. Same thing with blockchain tech.
I'm sorry if this is a rough example, but I hope it helps!
Josh.
I totally agree with that. Great points.
Perhaps (for the sake of SUPER simplicity) I compare STEEM to Facebook? That way it continues the internet sequence... And everybody knows these three companies...
Bitcoin is gold. Ethereum is the stock market.
This post received a 21% upvote from @randowhale thanks to @voronoi! For more information, click here!
Can't top these, I like some good analogies to help people understand when I am taking to them about crypto. Will definitely try these!
Thanks @meesterboom! I think it's a start... I'll need to polish this a bit more!
creative post. I would compare it to Coke, Pepsi, Sprite and Dr.Pepper. Same concept with subtle differences.
I like it :)
I'm not sure if these comparisons are good or a bit silly, either way I appreciate your creativity and some of the points you made are valid. However I'm just not so sure this is the best way to go about explaining them
Totally valid. It's tough to figure out the best method of describing, it all depends on who you're talking to and what their own experiences are.
Interesting take. Steem is sorta like Tesla, forfeit some things to get the very best of others.
Ethereum is more like AWS - not just a marketplace but a worldwide compute and storage solution. This time with the security of Bitcoin.
I would say all blockchains are like aol right now. Walled gardens. Eventually they will be connected in a sort of crypto blockchain internet.
That's just the future though.