How do my Lumens equate into the system though? are the Lumens going to be obsolete since the system is the "good part of this"? The only way i can invest is into the Lumen, not into the Protocol?
For Bitcoin to grow Satoshi Nakomoto or whoever architected the Bitcoin phenomenon, they understood greed is what would drive its explosive growth, not the proof of work concept that 99% of people will never understand anyway. Without the incentive of mining for money, no one would have heard of bitcoin except crypto geeks and people in academia.
There is a fundamental difference between protocols like Stellar and Bitcoin. In the case of Stellar you need to “know” the nodes and in Bitcoin u don’t need to. Thats what PoW solves.
@@jontakaki503 So in the long run.This will Stellar Consensus Protocol will become cheaper to operate years down the road???..So Bitcoin is only the marketing attraction to draw the public attention into the world of cryptos,but it eventually will be forgotten or people will find better and cheaper ways to transact??
I appreciate anyone's response: But do you think XLM will defeat XRP and eventually become the best system out there???..I know XRP their biggest customer or Bread and Butter is banks,but I think will be something of the past as they're becoming expensive and eating people's money;it's becoming a useless middle man. So that's my theory that Stellar is already trying to do that-go around this old ways banking protocols.. Could stellar eventually become more worth than Bitcoin????.. If we deeply analyze...It all comes down to Lumens and Satoshis.There's 100 Billion Lumens,but there's gazillion of Satoshis.Just calculate 100 million Satoshis which it equal 1 Bitcoin and times it to 17 million BITCOIN (i.e. 17 million Bitcoin × 100 million Satoshis) you will realize there's just too many Satoshis than Stellars..Also,XRP there's like 40 billion coins in storage and they could dump them whenever they feel like it,and that again is too much supply in circulation which will kill the value of your XRP coin....I believe everyone is skipping Stellar..
You’re incorrect. They can’t dump all at once because it’s 55billion xrp escrowed into 55 accounts each containing a billion xrp. Each month, one of those escrow accounts open and all of their customers can use that xrp for the month. Whatever is taken, Ripple buys back in xrp to bring it back to a billion at the end of the month. Then that escrow has its 1 billion again and closes (then the next account opens and so on). This way you provide a massive liquidity pool for banks to use to act as one massive nostro vostro account. Therefore xrp has to be valued much higher if banks are going to use it. Also by having 1 billion tokens accessible a month, and the rest is still escrowed it ensures xrp’s price remains stable. It’s bloody genius. They wouldn’t dump because a. the economy would literally collapse. b. It’s their core business structure and what makes them so appealing to banks. As for xlm (which I also speculate will be valued highly someday) will be interoperable with xrp. The way it’s designed though makes it seem like it is more for the retail level. If banks move all their money through xrp, and then commercial/retail use xdc/xlm it makes the most sense to me.
WELCOME, I'd like to welcome both new and seasoned users to r/Stellar! The community has grown exponentially over the past 6 months and with this growth has come a great collection of fresh ideas to the ecosystem. It's important to remember to protect this community's philosophy of Open-Source Citizenship by respecting the rules (see sidebar and scroll to the bottom of this post) and respecting each other. This community's rules & guidelines are in place to foster collaboration, quality conversation, and user safety. Don't forget to check out our community page for community events, forums, and Stellar Build Challenge information. Subscribe to the monthly newsletter to stay up-to-date on Stellar. Thanks for being a part of the /r/Stellar community! www.reddit.com/r/Stellar/comments/8h0grg/welcome_to_rstellar_read_this_to_get_started/
34:00 Yeah, you realize those banks nodes are bad, but v7 already lost his money and there's no way of getting it back. This is a problem with this consensus protocol.
No, the consensus protocol works. It prevents double spending. The payment to v8 will be rejected. If you want to reverse the transaction with v7, you could have v7 pay the bank back, then you could send the payment to v8.
Let's say I'm a bank that failed to cover transaction assets due to rapid currency inflation or something like this. I can overspend my money and transfer them back to increase my assets. Let's say I have $100 in local currency (or stocks or property), that dropped to $50 in dollar equivalent for some reason just before or during the transaction settling. Real assets' values and bank risk management goes below radar of the protocol, so nobody quite knows it. I'm transferring said fake $100 and then transfer $100 backed up by real dollars back to me. And bang! I got twice as much money. That's why poor countries have such terrible transfer rates. Solely because wealthy banks prevent such frauds making poor banks back up external accounts with solid assets. And poor countries' governments apply regulation on banks to prevent further undermining of local currency by flushing it into the firm western bank system.
THANSK FOR THE GRAET VIDEO PLS AND PI WILL LEAD THE CRYPTO MARKET NO MATTER FANALLY WILL BECOME BILLIONAIRE IN 5 YRS 100 BILLION DOLLLARMAN NARAYAN KUNWAR
You try explaining even what a blockchain really is to someone else and you'll realize you need a good sit down talk to get the other side to understand. Each area in blockchain can run so deep. This explanation was actually great.
