The Evolution of Cryptocurrency Roles

Hello!

My name is Elena Kondricheva, I am the finance assistant at Platinum. Our company is in the top league of ICO and STO promotion. Moreover, we not only help startups and big companies to prosper but develop the unified system of knowledge on crypto-economics, ICO and STO. You’ll find more information on our company’s site – hop on:

Platinum.fund

We are also proud to announce that our educational project, The University of Blockchain and Investing, is launching a unique ICO, which is going to solve the problem of student’s and employee’s data verification. How to contrast and compare traditional roles and their blockchain industry counterpart? Test the UBAI courses to get the answer:

Ubai.co

Objectives

By the end of this lesson you will have learned the following:

  • How the original roles in the blockchain industry have evolved up to this day.
  • Some of the key individuals across all roles, early in the blockchain industry.
  • Current expectations for each role in the cryptocurrency industry, with an evaluation of how the role has developed, and the likely skills required for it in the future.
  • How to contrast and compare traditional roles and their blockchain industry counterpart.

In lesson four, we examine the structure of the roles people fill in the blockchain and cryptocurrency space, looking carefully at how these roles are changing and what they may look like in the future. You should know by now that blockchain technology is a disruptive technology fueling the emergence and growth of cryptocurrencies and business solutions never imagined possible before. In this lesson, you will further develop your understanding of the purpose of each role, and the way different roles relate to each other and to the overall team. We will also take a look at cryptocurrency roles that closely mimic existing professions and traditional positions. Roles such as Marketing, Accounting, Sales (Investor Relations) and Business development are some of the burgeoning and popular roles in this industry.

Terminology

The Ethereum Virtual Machine: One of Ethereum’s core innovations is that its software enables developers to run programs with any programming language on the network.

Dapps: developers are able to develop potentially thousands of different applications on the Ethereum blockchain, i.e., Decentralized Applications.

Decentralized Autonomous Organizations (DAO): A DAO consists of one or more contracts and could be funded by a group of like-minded individuals. A DAO operates with complete transparency and independence of any human intervention, including its original creators. A DAO will stay on the network as long as it covers its survival costs and provides a useful service to its customer base.1.

1.1 The Evolution of Roles

Introduction

In late 2008, the mysterious Satoshi Nakamoto released a whitepaper titled ‘Bitcoin: A Peer to Peer Electronic Cash System. Little was known about blockchain technology at the time, although cryptography (the science behind it) dates back to the 18th century.

Satoshi Nakamoto’s intention was to create a decentralized and borderless system for the transference of value. A system that is both efficient and truly independent. This was a very big idea, with a humble beginning in the real world. But now, blockchain, bitcoin, and so many other cryptocurrencies are some of the most talked-about and innovative pieces of technology.

1.1 Introduction

Let’s start by looking at four traditional roles in the blockchain industry and how they have evolved over time.

Buy the full course and learn all about ICO, STO and all newest trends in crypto-economics.

Get your full course!

1.2 Cryptocurrency Miners

When people first hear about mining cryptocurrency it is natural to think of big drills and rock crushers. Of course it is different than that.

1.2 Cryptocurrency Miners

What happens in cryptocurrency mining?

Bitcoins exist in a protocol design, but the bitcoins need to be brought to light, or brought into being through a series of mathematical computations. This is similar to gold existing underground, but if we want it we need to explore for it, find it, and then dig it out. Another similarity to gold and gold mining is the scarcity of bitcoin. There are only 21 million Bitcoins which can possibly exist.

1.2 Cryptocurrency Miners

Why would someone want to mine cryptocurrencies?

The simple answer is for a reward, which is paid in the form of Bitcoins. A miner must run what is called a “node” in order to do the mining and earn the reward. A node is a powerful computer that runs the bitcoin software and helps keep the blockchain network functioning by participating in the relay of information. Anyone is able to run a node. A miner simply needs to download the free software and leave a certain port open. Mining nodes solve complex mathematical functions and add the correct answer to the block. Miners are rewarded for their ability to solve and complete blocks as well as verify transactions on the network. It is far more complex than this, but this is the general principle.

1.2 Cryptocurrency Miners
1.2 Cryptocurrency Miners

How has the role of miners changed?

Mining bitcoin is an extremely energy-intensive process. In the very beginning miners would work to solve cryptographic puzzles for blocks, and to confirm transactions on their own. Bitcoin was not very popular, and most people simply mined for leisure or intellectual interest. No one really knew how much bitcoin would appreciate in the future.

Maybe you remember the story about James Howells, who mined 7,500 bitcoins and forgot about them on his hard disk. The hard disk ended up in the trash can and later into a landfill in Newport, under tons of garbage. Other home miners have the same story to tell. They did not care much about how they stored their BTC before the coin gained such massive popularity and value.

1.2 Cryptocurrency Miners

What caused this change?

As more and more bitcoins have been mined, the computations have gotten harder and harder, meaning more and more energy is required to perform the computations.

This has led to the emergence of pool mining and the decline of home mining.

The popularity of bitcoin has soared, and the difficulty of the problems needing to be solved has increased dramatically.

1.2 Cryptocurrency Miners

With the recent decline in the price of Bitcoin, and more people taking part in mining, the incentive is becoming less attractive for the miners. Some mining pools have actually stopped their mining operations. They are waiting right now, as we speak, until the price goes up again to make up for the high cost of mining. The situation is different in China. By far the most mining pools are in China, perhaps because the Chinese need to mine bitcoins to use them as a borderless payment system to circumvent stringent government regulations. The availability of cheap and reliable power is also a tremendous driver of cryptocurrency mining in China.

1.2 Cryptocurrency Miners

What does the future look like for miners?

Home mining is likely to remain a thing of the past. Larger commercial scale mining setups are likely to become more common place as the industry consolidates further. Tremendous scale is required to endure the volatility of the cryptocurrency industry. Home miners are not likely able to scale up for the intensity of this kind of competition.

1.3 Cryptocurrency Investors

1.3 Cryptocurrency Investors

Who are some of the earliest investors in bitcoin?

You already know names like Satoshi Nakamoto, Nick Szabo, Hal Finney and a handful more. The earliest investors in bitcoin were more than mere investors. These people were propagators of the technology behind bitcoin and the unique opportunities presented by the emerging blockchain technology.

Some people were astonished when bitcoin became an inescapably huge media story at the start of 2016 throughout the bull run in 2017. After the initial technological enthusiast type investor, a new class of investor was growing fast. These were real investors, professional investors and experienced private individuals alike, motivated by the outlook for unprecedented financial gains. These were people who one way or another could understand the blockchain and the revolutionary significance of BTC and other cryptocurrencies. But it is fascinating that at this point, no matter how much experience people had had in traditional investing, and no matter how successful they had been in the traditional financial world, by far the vast majority of them were still simply unable to get a grip on what was happening with blockchain and crypto.

Buy the full course and learn all about ICO, STO and all newest trends in crypto-economics.

Get your full course!

Don’t hesitate and contact me via Facebook to get the details:

Facebook

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *