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For example, steemit.com: a social network where you get paid (in tokens) for producing/curating content. As the network grows, the token gets more valuable, so

For example, steemit.com: a social network where you get paid (in tokens) for producing/curating content. As the network grows, the token gets more valuable, so there's a strong incentive for early users to join it. I'm not sure yet steemit will end up being a winner in this field, but I find this a very smart approach for challenging the network effect of big competitors.

joosters 9y ago
There's nothing there that is impossible without a blockchain. The steemit website might as well issue its tokens using a simple database. Running it on a blockchain adds nothing except a 'shiny new technology' feel.
- ruiquelhas 9y ago
  And why would I need the tokens in the first place? Hell, why would I need to pay at all, given that there are free alternatives like Medium?
  - felipeccastro 9y ago
    You don't pay, you gain money. Unless, of course, you're a company that wants to buy advertising space. As a user (writer/curator), you earn tokens for doing what you already do for free in reddit or facebook. The tokens you earn are like altcoins, you can trade them for whatever you like.
- felipeccastro 9y ago
  The tokens here are essentially altcoins, like ether or bitcoin. How would that be done with a simple, private database?
  - joosters 9y ago
    The steemit coins, as I understand it, have little to no other use (unless 'speculation/gambling' is a use case) so they don't need to be crypto coins at all. Instead they could be magic internet points that are all accounted for and transferable on steemit's website, with options there to buy more or to sell them for cash.
    - felipeccastro 9y ago
      That’s like saying bitcoin could be a Money table on my personal database. It’s not the same at all. These coins are unique, wont be tampered, work on exchanges, and don’t depend on you trusting the startup that created it.
      - joosters 9y ago
        Indeed, that's the key difference. Steemit coins inherently require trust in steemit, since without the website's existence, the coins have no use at all. As everyone is implicitly having to trust steemit, there's no benefit in running a blockchain. As you say, the key point of blockchains, like bitcoin, is that there is no central trusted entity. So, like steemit has done, if you add a trusted person or company, the main feature of the currency is wiped out and there's no point in having a blockchain in the system.
        felipeccastro 9y ago
        You needing to trust the website will exist for the coins to hold any value, while true, is not the same as having to trust the currency will work as a currency - i.e. that what is yours is yours, and the steemit owners can't simply wipe out the database or change their numbers arbitrarily. I'm not saying this model is foolproof, and perhaps you're right and steemit (or app specific coins) will never be a big hit because of that. My point was just to show an example of a different kind of business model / monetization strategy made possible because of the blockchain, and there will certainly be others.

joosters 9y ago

There's nothing there that is impossible without a blockchain. The steemit website might as well issue its tokens using a simple database. Running it on a blockchain adds nothing except a 'shiny new technology' feel.

ruiquelhas 9y ago
And why would I need the tokens in the first place? Hell, why would I need to pay at all, given that there are free alternatives like Medium?
- felipeccastro 9y ago
  You don't pay, you gain money. Unless, of course, you're a company that wants to buy advertising space. As a user (writer/curator), you earn tokens for doing what you already do for free in reddit or facebook. The tokens you earn are like altcoins, you can trade them for whatever you like.
felipeccastro 9y ago
The tokens here are essentially altcoins, like ether or bitcoin. How would that be done with a simple, private database?
- joosters 9y ago
  The steemit coins, as I understand it, have little to no other use (unless 'speculation/gambling' is a use case) so they don't need to be crypto coins at all. Instead they could be magic internet points that are all accounted for and transferable on steemit's website, with options there to buy more or to sell them for cash.
  - felipeccastro 9y ago
    That’s like saying bitcoin could be a Money table on my personal database. It’s not the same at all. These coins are unique, wont be tampered, work on exchanges, and don’t depend on you trusting the startup that created it.
    - joosters 9y ago
      Indeed, that's the key difference. Steemit coins inherently require trust in steemit, since without the website's existence, the coins have no use at all. As everyone is implicitly having to trust steemit, there's no benefit in running a blockchain. As you say, the key point of blockchains, like bitcoin, is that there is no central trusted entity. So, like steemit has done, if you add a trusted person or company, the main feature of the currency is wiped out and there's no point in having a blockchain in the system.
      - felipeccastro 9y ago
        You needing to trust the website will exist for the coins to hold any value, while true, is not the same as having to trust the currency will work as a currency - i.e. that what is yours is yours, and the steemit owners can't simply wipe out the database or change their numbers arbitrarily. I'm not saying this model is foolproof, and perhaps you're right and steemit (or app specific coins) will never be a big hit because of that. My point was just to show an example of a different kind of business model / monetization strategy made possible because of the blockchain, and there will certainly be others.