While the major cryptocurrencies of the present have almost entered the mainstream, developers are also coming up with the next generation of Crypto Currencies.
As the virtual coin space evolves, innovative developers adapt their approach to distinguish themselves from rivals and build traction and acknowledgment. The strategies adopted by these developers of the next generation of cryptocurrencies span from supporting their cryptocurrencies with tangible assets or commodities to the rise of decentralized ICO platforms. All take advantage of the opportunities made available by blockchain technology.
All of these form the basis of the next generation of virtual coins
Next generation of virtual coins backed by physical assets
Many critics point to the fact that cryptocurrencies are not backed up by tangible assets, as many currencies worldwide have been in the past (most often with gold). This increases price volatility and the risk of deflating cryptocurrency holders’ cryptocurrency values.
Some forward-thinking developers have addressed this risk directly. For example, in September 2017, Chicago-based Sparkle Coin, Inc. launched its eponymous cryptocurrency, which was described as the first cryptocurrency of its kind to be backed by diamonds.
Sparkle Coin is a hybrid form of new-generation cryptocurrency that enables both fast adoptions via mining and long-term sustainability via minting. Each Sparkle Coin is supported by $5 in GIA-certified diamonds, which can be redeemed in $500 increments the day after the Sparkle Coin ICO. Diamonds are a secure investment because they have been shown to gain value more consistently over time than other assets, such as gold.
“Sparkle Coin bridges the gap between cryptocurrencies and traditional business by developing an economic ecosphere comprised of an asset-backed cryptocurrency, transacted through a powerful currency exchange, with an outward-facing cryptocurrency payment gateway allowing virtually all merchants to accept cryptocurrency through an online shopping mall or directly on their websites,” Victor Wong, founder, and CEO of this next generation virtual coin had said in a press release on September 5, 2017.
Bilur is another next-generation cryptocurrency looking to mitigate risk by tying its cryptocurrency to a valuable asset. Bilur’s value is backed up by stored physical energy, tying its value to that of energy commodities. Bilur chose to back up its cryptocurrency with energy commodities because energy is a commodity that humans will always require.
“1 bilur equals 1 TOE (Ton of Oil Equivalent), which equals around 11.6 MWh of energy. By definition, for bilurs to be issued, oil or other energy commodities must be purchased first. For the initial issuance, 1 million barrels were purchased, entitled the issuance of 52.9 million USD worth of bilur (154,297 bilurs),” according to Steemit.
Furthermore, the Bilur team emphasizes the possibility of non-professionals becoming active investors in the energy commodities market.
Komodo is another innovative type of next-generation virtual currency that addresses many people’s desire for a decentralized ICO platform. Through Komodo’sKomodo’s built-in privacy features, coin developers can “launch a transparent coin offering while maintaining investors’ privacy.” For the first time in crypto history, native cryptocurrencies can be issued and distributed without the assistance of a trusted third party.” This effectively means anyone can use Komodo’sKomodo’s platform to anonymize an ICO. Komodo has already partnered with strategic partner Monaize to use this technology, capitalizing on the desire for privacy in an increasingly connected world.
Possibilities of the Future
The next-generation cryptocurrencies mentioned above are just a few of the interesting possibilities that next-generation cryptocurrencies will provide. With government institutions (such as the Bank of England) now seriously considering the future integration of cryptocurrencies into national economic infrastructure, the collaboration of regulators and innovative players like Sparkle and Komodo will determine the shape of the twenty-first-century economic system.