If you know about Dogecoin, then you know that it is essentially the longest running joke project in the Crypto community. What you might not know is that Dogecoin’s creator, Jackson Palmer, is actually very serious about the growth of the industry and continues to be involved in it, in different ways.
A contemporary article by CCN attempted to shed some light on the problems that Crypto is experiencing with regards to driving widespread adoption, with the help of Palmer’s opinion on the subject.
What resulted was actually quite an interesting discussion that arguably, many Crypto projects should take note of and even act on.
In even beginning to understand the conclusions that were drawn in this article, it is important to first understand some lesser known truths about decentralized platforms as compared to centralized platforms. In the context of this interview that CCN did with Jackson Palmer, the most important difference to think about seems to be how to incentivize users to join each sort of platform.
In the Blockchain industry, as suggested by CCN, most companies seem to run on the assumption that users will choose the Blockchain over more centralized solutions, simply due to the ability to own their own data.
Even if we only consider the overall status of the Crypto market, it truly does not appear that this approach is working. Jackson Palmer, based on his involvement in the previously mentioned CCN piece, definitely seems to be in the camp that agrees with this sentiment.
In short, simply creating a Blockchain network and marketing it as much as possible as being better than its logical, centralized alternative is not enough. Prospective users of these products need more than these claims, even if they are backed by technical data.
The tradeoffs skew in favor of staying with trusted solutions. Why would a user leave a bank that has never made a mistake with his or her funds, for a Cryptocurrency network that has no extensive ties to his or her daily life?
What do we mean by this? Another way to think about this issue is to ask yourself: how does a traditional currency get its value? The short answer is that there is a specific supply of it, put together with a specific demand for it. Inside of this lies the fact that traditional currencies have value because governments help to maintain that value.
On top of all of this, for a traditional currency to have value, it has to be usable for anything and everything that a person needs in his or her daily life. Just think: what can’t I use a dollar for?
On the other side of things, what can you use a Cryptocurrency for? As of now, the ugly truth is that Bitcoin, Ethereum, and all of the rest are hard to use for anything outside of their industry’s walls.
In the end, until we see Cryptocurrency prices listed for everyday items like groceries, we have not quite reached the point of widespread adoption of Blockchain technologies.
To reach that point, we just might have to listen to the reasonable advice of the Jackson Palmers of the space, who are calling for mass incentivizing of prospective users to retain them and gain more, en masse.
By: BGN Editorial Staff