Blockchain – Encryption, Immutability & Truth

The Foundation Of The Future

The cypherpunk community, largely led by Satoshi, went to great lengths to birth Bitcoin, a peer-to-peer digital cash that has since evolved into an entirely new and unique asset class. Encryption is the foundational layer that secures and empowers the Bitcoin network and other Cryptocurrencies. This level of security houses and validates the countless transactions that occur on public blockchains every day.

Both Proof-of-Work and Proof-of-Stake protocols are used to verify and validate on-chain transactions. Blockchain offers a higher level of transparency. However, centralized partnerships operating within any particular ecosystem or community can still manipulate decentralized models. One could argue that certain alliances benefit the entire community. However, that remains an objective opinion.

Decentralized networks still have a way to go in establishing an “acceptable etiquette” that respects the principles that were formative in the birthing of decentralized entities. There has been an ongoing concern regarding initial token allocations to founders and respective treasuries. Pre-mining remains a contentious topic. One of the strongest projects regarding these questionable practices is Ravencoin.

Degrees Of Purity

Ravencoin had no pre-mine and had zero allocation to founders or treasury. Ravencoin is a Bitcoin fork that improves upon the initial blockchain model, creating the ability for tokenization and NFTs. It is probably the purest form of Cryptocurrency on the market. Being a Proof-of-Work protocol, coins can be mined just like Bitcoin. Ravencoin is the best example of a decentralized blockchain.

All Cryptocurrencies are encrypted and immutable regarding confirmed blocks. An on-chain health check will reveal the true condition of a particular blockchain and its level of centralization. The Nakamoto Coefficient measures a blockchain’s level of decentralization. The higher the number, the more decentralized and robust. For example, Solana has a NC of 18 making it heavily centralized.

Polkadot, on the other hand, has a NC of 113 making it 6X more decentralized than Solana. On-chain data is not only necessary for market insights but also for deeper insights regarding the true state and condition of particular blockchains. These insights and metrics deliver truth. Many investors are sweet on Sei. However, there is nothing much going on in the ecosystem and Sei has a NC of 8!

Polygon has a NC of 4, making it one of the lowest, if not the weakest of Proof-of-Stake blockchains. There are so many metrics available to measure blockchains and their inherent value and health. Heavily centralized decentralized networks are everywhere and are counterintuitive regarding the pursuit of a decentralized future. I like to examine the finer points of blockchains I am interested in.

Final Thoughts

Blockchain has some amazing features and benefits. Understanding how they all work together is essential in introducing and identifying solid projects within the Crypto space. Identifying strong projects with income-generative aspects is a good place to start. Having one or the other is not advisable. These two elements create a strong synergy that can propel and establish a project in the future. All the best, catch you next time!

Disclaimer

First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.

This article was first published on Sapphire Crypto.