First let me preface this article with my stance or views on Blockchain, which some of you may have read on Twitter. Most of the tweets I have made have been fairly negative towards Blockchain and to be honest there were some occasions where I was just bitter.
Not bitter at people who are invested in or make their living from Blockchain but the entire industry as a whole, particularly when it is mentioned with the inclusive word of “Cryptocurrency” as the big players in the game the miners and the exchanges tend to only reference Blockchain.
As you would expect them to do but my frustration stemmed more from the cryptocurrency media none of whom have written a single article about Holochain in at least 2 years. Even as I type this Holochain has moved from one of the bottom dwellers to having a 24 hour market cap of half a billion dollars.
I don’t think that they can hold out for much longer and will eventually have to mention it, but that’s not the point of this article nor is it something I will say “haha you had to do it”, I don’t take any pleasure out of Holochain being shunned and ignored then suddenly noticed, it makes me sad that even if some of these media people would like to cover Holochain their employers would prefer that they look after their own interests which is predominately Blockchain.
This is why I am prefacing this story to give you the mindset of a cryptocurrency asset that has the potential to bring billions of dollars into the Blockchain space.
I don’t hate the people invested in Blockchain although some are a little snarky on Twitter but lets face it we all become a little tribal when it comes to something we believe in or are invested in.
XRP is a classic case of this, I despise what Ripple does to its investors when I see headlines of current or former executives cashing out hundreds of millions of dollars. That doesn’t mean I feel any angst for the majority of those who hold their currency.
I think we all need to find a way to agree that nothing is perfect, everyone has a right to do what they like with their money and also recognize that by saying something negative towards a project or about it should not be taken personally by those invested in it.
I have been guilty of this also in the past.
Now that I have told you why I am so bitter and twisted, lets do a 180 and get positive and move on to take a look at what the future can potentially hold for both Holochain and Blockchain.
Separate The Goals
This to me is something important in identifying what is possible, why it will work and why it will grow, by that I mean what are the common goals shared between Holochain and Blockchain?
To summarize each its much easier to identify what Holochains goals are because there is only one, but with Blockchain there is a plethora of different projects each with different teams, ideals, goals and supporters.
Holochain is designed to be the following;
Holochain is an open source framework for building fully distributed, peer-to-peer applications.
Holochain is BitTorrent + Git + Cryptographic Signatures + Peer Validation + Gossip.
Blockchain is designed originally as the following;
Based on a peer-to-peer (P2P) topology, blockchain is a distributed ledger technology (DLT) that allows data to be stored globally on thousands of servers — while letting anyone on the network see everyone else’s entries in near real-time. As new data comes in it is entered into a fresh block. Once the block is filled with data it is chained onto the previous block, which makes the data chained together in chronological order.
That is a very basic explanation of Blockchain especially now since new iterations have been tweaked and changed to provide different types of consensus and usability.
Bitcoin vs the Rest of Blockchain
It is obvious that Bitcoin is the first, the big daddy, the king of blockchain, it always has been and likely always will be.
Ironically if you compare Bitcoin to most of the other popular Blockchains its features are actually its lack of features, this is what attracts so many purists or BTC “Maxis” as they are known.
So for the purpose of this article there is no real point in mentioning Bitcoin any further because it simply is what it is and always will be.
Note: This does not include wrapped or other versions or forks of Bitcoin I am talking about the original one and only.
As time goes by I see the forks of Bitcoin as being torn between to lovers, feeling like a fool, because they made their name by forking the original so they could airdrop then gain in profits from it but now although still popular with many people, they don’t really offer anything to the cryptocurrency space apart from faster block times etc.
They are not capable of some of the technology that the newer blockchains are and therefore are in a bit of a no mans land between innovation and originality.
Other Popular Blockchains
Anything that isn’t the original Bitcoin is known as an Alt-coin and there are thousands of them, way too many if you ask anybody into cryptocurrency.
To try and describe the goals of all Alt-coins is a bit like asking a room packed full of people what their star sign is,you are going to get many different answers but there will also be a lot of overlaps.
So to make it easier I will just list below some of the most popular functions and use cases.
Defi: Decentralized Finance mostly in the form of Smart Contract executions.
Smart Contracts: Immutable program or a transaction protocol which is intended to automatically execute, control or document legally relevant events and actions according to the terms of a contract or an agreement.
Payments: Nearly every Blockchain has this in common, the ability to transact between people over a secured ledger.
Cross-Chain Interoperability: The name speaks for itself.
Oracles: Connects smart contracts with data from the real world.
dApps: Decentralized Applications
To keep this short and sweet there is not much point in continuing this list as it could go on forever with all adding some different twist or feature or method of consensus.
Does Blockchain Share Goals?
I would say yes they do, they all want to see external adoption from the fiat world, this is one thing that all of them have in common.
There is also something that most Blockchains have in common and this to me is a little perplexing because when I look at Blockchain holistically from a birds eye view and I see their literature, their images, their marketing their tweets etc I find myself more and more noticing that a common goal in Blockchain is to create interoperability with other Blockchains.
This rings alarm bells in my head every time I see it. Because to me that isn’t a product to sell that falls in line with the main goal above that I mentioned which is fiat adoption, in fact it is just the opposite of it, to me its almost a resignation that seeking external adoption through any particular features has been pushed to the side to attract only people already invested in Blockchain.
That should be worrying to anyone who is invested in Blockchain but only sees their project as being able to connect with another Blockchain, at some stage their needs to be an end game or means or stream of income.
I tweeted about that recently.
I see this seemingly voluntary internalism as being a sign of defeatism and maybe with the view of just hoping the entire market keeps expanding to realize gains.
This is an area that I often talk about when comparing Holochain to Blockchain and I know this is a broad comparison because there are so many different Blockchain projects and its not really fair to lump them all under the same banner but generally the big difference is a revenue stream or income.
A means to have everyday people buying your product, or using your services to facilitate a purchase or any other evolution that returns some money from the real world back to Blockchain and in particular the projects you follow or are invested in.
As it stands now in the cryptocurrency markets those who gain the most are the cryptocurrency miners, the cryptocurrency exchanges and those who entered very early and hold large sums of particular coins or tokens.
If I am a noob and stepped foot into the world of Blockchain today, apart from others buying the coin or token I am interested in, can you explain to me how this venture makes money, where does the revenue come from?
Imagine if I am the last person to buy lets say Cardano or Polkadot, or Litecoin no more sales of their coins because the exchanges have frozen any purchases, would I make any profit from either project?
We all know the answer to that is no, you would not make any money because they don’t have a product to market or sell outside of cryptocurrency.
One Litecoin does the same thing at $5.00 as it does at $400.00 because its only price rises that give it value.
By now your probably thinking this is a hit job on Blockchain, trust me its not, I am just being realistic and facing facts.
Keep that thought in your mind next time you buy a cryptocurrency, ask yourself where does the income or revenue come from? If the coin or token is the only thing that gives it worth, because it talks to other Blockchains then you are betting that there will be price increases in perpetuity because no matter how high the price becomes someone will always want to pay more for it, because it does nothing.
There just isn’t any logic in that and that is why many in Blockchain are being manipulated, tricked, fooled by the exchanges, the miners, the influencers etc, they all play the same card and you know what that is, scarcity.
This isn’t really a goal but its something all Blockchains have in common and that is the reliance on that word of scarcity.
But that’s another story for another day.
Lets move on to how Holochain can work with Blockchains.
Fiat Money Coming into Cryptocurrency
One of the things that Holochain will do for the entire cryptocurrency space which will help the entirety of Blockchains is increase the total market capitalization.
Once established and fully up and running Holochain through its Reserve Accounts (RA) will eventually (not initially) be accepting many forms of Fiat payments for hosting.
The entire nuts and bolts of exact mechanisms hasn’t been published yet but for example if I am a non-cryptocurrency person and have developers building my application on Holochain and I want it to be hosted entirely peer to peer without any data centers I can go to the Holo Reserve account and purchase HoloFuel.
In the beginning there will only be one Holochain Reserve Account and that is with the Hot token. After that you will likely see a USD, EUR, GBP, SGD,AUD, JPY, CAD Reserve Accounts, so the methods of entry into HoloFuel are wide and far reaching.
This allows regular people, non crypto people, after having created their Holo accounts to dip their toes into cryptocurrency through the purchase of HoloFuel. These payments will no doubt be tracked by websites such as coinmarketcap.com and Holo itself will likely provide a live updated statistical ledger to show the amount of sales.
So this money will also make its way to exchanges because even though Holochain has a new type of currency, that being HoloFuel the exchanges that are selling and buying or facilitating the selling and buying of HoloFuel will include these figures into their charts and calculations.
It will grow the entire market by potentially hundreds of millions when its fully live and up and running. Think back to the size of the Ethereum total market amount when it was first launched now look at what it has become, HoloFuel will not only match it but surpass it due to the reach of new customers it will have, it isn’t bound to the Blockchain industry, in fact its bound to the Fiat world but will forever remain in both spaces.
Holochain As A Side-Chain
It is possible for Holochain to work along-side Blockchain and there are probably many more uses cases then the very few I will offer here or am even aware of.
If there is one thing that Blockchain is, its innovative, they are forever looking at ways to improve their product and if they can do so using Holochain that is fantastic.
They mainly focus on consensus improvements but now with Holochain they have entirely new means of reaching the outside world.
As you know Chainlink is widely popular amongst Blockchain because it can be used as an Oracle to bridge the gap between blockchain technology-based smart contracts and real world applications.
It does this because the majority Blockchains cannot access data outside their network or if they can with these new interoperability platforms it still binds them to the Blockchain universe.
The difference between Holochain and Chainlink accessing data from the real world is that Holochain lives in the real world so it is able to feed true data through to Blockchains.
Keep in mind this is of course not Holochains purpose as described above, but it highlights the versatility of it as a tool for any industry.
So one of the ways Holochain can benefit Blockchain is for the Blockchains to build a Holochain application to run alongside their Blockchain that is used to feed them data which can then be hashed and fed into the Blockchain.
This means there is no need to purchase another Chainlink coin for Nodes for validation as your Holochain DHT will have its own validation rules created within the application and the data is then transferable directly to a Blockchain as a hashing function.
I think this also will allow Blockchains to not only connect their chains to Holochain through their own Holochain application or hApp but it also would also provide Blockchains a bridge to the Https world through browsers.
It will even be possible for Holo hosts to bind their private keys of their cryptocurrency to their Holo hosts account to prove ownership of those keys and interact with your own blockchain via Holo.
This short video from Holochain co-founder Arthur Brock delves into it a little.
Other Advantages For Blockchain
To be honest I have a fair understanding of Blockchain, not a technical one the same applies to Holochain but I do have a lot of knowledge of brand association and marketing.
I really think that if I put my Blockchain goggles on and I pick any project that is in the top 100, or top 300 lists I look at them and think if that is me, if I am in charge of that, how can I expand its usability, how can I get the attention of people outside of Blockchain?
This one area where many of the current Blockchains are able to not only have a real world data input system as a permanent side chain and be able to say that this information is 100 percent sent and received peer to peer, it isn’t stored on any data centers, it is hosted across the globe and truly decentralized.
That’s not a claim many Blockchains can make at this stage as many of them use AWS or other centralized hosting services.
For example take a look at Tron’s D-Live platform (image below) that claims it is “streaming on the Blockchain”, it isn’t, its using AWS.
There are tools out there to see where data lives, what data centers send traffic to particular URL’s.
This one area where Blockchain can also shift its supporter bases too as well.
There are already different versions or algorithms that Blockchains can use to transfer a regular coin or token. For example a withdrawal on Binance you have the option of ERC20, BSC, Bep2 and other variations.
Because sending and receiving any cryptocurrencies on Holochain are free, and the only cost is hosting the application I think there will be many Blockchain brands that also have a version running on Holochain, they can add a nominal fee if they want or make it entirely free for their users to send and receive.
They can also then claim that their digital currency does not pass through or live on centralized servers and its truly 100 percent peer to peer.
So even if a Blockchain uses Holochain as a side change for transactions they can still populate the Blockchain with hashed versions of any transactions to maintain a correct ledger.
There is really an unlimited upside for Blockchain utilizing Holochain and I am sure there will be many that come up with unique and fascinating ways to do so.
If you are invested in or part of a Blockchain community, start throwing the idea around your community, look at how it can benefit you, how it can benefit the brand, how people will perceive it and interact with it, because the first ones that start doing it will see a price increase immediately I am one hundred percent sure of that.
And pretty soon you may find your product isn’t just waiting for others to buy it to increase itself in price, connecting your digital currency to the real world opens up real world opportunities for revenue.
Its worth thinking about, be innovative and use new innovations as a tool to to your advantage.
Thanks for your time and best wishes.