Ivan Kohut, co-founder and technical director of IT-company Perfectial about two notable scenarios of last year, which, in his opinion, should remain in history. The price of the Ripple and Tron tokens at some point soared thanks to the excitement created by investors who do not quite understand what they are dealing with. To avoid such situations, in the coming year, market participants should pay more attention to the study of blockchain technology .
The world of blockchain plunged into chaos in 2017. We have seen a stir around the ICO, staggering jumps in bitcoin prices , the emergence of a new, potentially revolutionary technology (decentralized exchanges) and, of course, several notable hacking of exchanges.
But what awaits this technology in the future? Will 2018 be a critically important year for the implementation of the blockchain? Let’s try to answer this question.
The noise around Ripple
The Token Ripple (XRP) was worth $ 0.006 in early 2017. Now its price fluctuates around $ 1.
In December, this crypto-currency price went up by more than 1000%. It seemed that this sharp rise was the result of widespread rumors. Some participants in the crypto industry suggested that Coinbase, one of the largest crypto-currency platforms in the world, was going to include a token in the listing and ensure its unhindered exchange for fiat currencies. There were even screenshots and videos, allegedly confirming it. However, as it turned out later, these materials were forged.
Then events developed in a typical way for the blockchain industry: unprepared investors began to buy up a “promising” token, without really understanding whether there was any benefit from it.
I believe that XPR is a “centralized” crypto currency. Its creator, the company Ripple Labs, does not try to specifically attract ordinary users. Instead, Ripple offers technology for banks and large enterprises, which allows them to promptly transfer assets (any assets, not just a crypto currency). Until recently, the crypto-currency community largely ignored this platform, as it did not match Satoshi Nakamoto’s original vision (getting rid of banks, not alliance with those responsible for economic collapse) and the general philosophy of decentralization.
One of the co-founders of Ripple, Jed McCaleb left Ripple Labs in 2013 and started developing Stellar – a hybrid blockchain. Initially, Stellar was a fork of Ripple, but after testing the Stellar Development Foundation expressed concern about the integrity of the platform’s consensus protocol. Quite simply, doubts have caused Ripple’s ability to survive in hacker attacks, as no one has tested what will happen to the network if it ever encounters malicious acts. Stellar completely redesigned its consensus protocol and now uses a completely different blockchain system based on the protocol of the Byzantine agreement.
It should be noted that I do not blame Ripple. It is a company with its own, working software, which, from the perspective of banks, can be very useful. Nevertheless, I am concerned about the issue of speculative bubbles (i.e., artificial manipulation of prices).
Tron and the need to understand the blockchain in 2018
Tron, a project that spent an ICO of $ 14 billion and does not yet have a working product, is also an example of how speculation can affect cryptology.
Having nothing but documentation and an ETH token, the Tron project achieved a growth of TRX to 3650% in just a month. This phenomenal breakthrough came about thanks to the brilliant marketing strategy of the founder of Tron, Justin San, who was mentioned twice in the list of the most prominent entrepreneurs before age 30, and also thanks to John McAfee, who praised the token on Twitter, secretly promoting it to his 500,000 readers. Shortly after this tweet, the price of TRX rose from $ 0.04 to almost $ 0.29, and the token hit the top 10 crypto currency.
However, a few days later, a lot of negative publications about Tron appeared, due to the fact that plagiarism was found in its documentation. The price of TRX fell below $ 0.1 USD. Many people lost money.
I sincerely hope that such scenarios will not be repeated and the stories with Ripple and Tron will be the last lesson. I also believe that in 2018, in addition to programmers who are self-studying blockchain, many companies will have individual, mandatory programs for project managers, lawyers and senior officials.
Promising educational initiatives are already appearing, and I expect that there will be more of them.
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