I had a different post planned already but then I got tagged in @cryptoandcoffee's post on collecting Steem and the direction changed it is somewhat related to my post from last night on crypto scarcity and also mentioned SMTs. SMTs are a magical animal that not many people understand well (myself included) but, they are going to have a massive impact in the crypto future as essentially anything and everything that can be, will be tokenized.
There are many reason I have so much faith in Steem but one of them is the Steem foundation that can tie many communities together and still allow them to act independently, but I will get to that later.
Smart Media Tokens are going to be a part of the future. @cryptoandcoffee mentioned that I put the fear of the devil into him often enough that he felt he was going to miss out if mass-adoption happened and as a result, he has grown. Then he read a post by @theycallmedan saying every blogger should be trying to hold at least 1000 Steem and under the current supply, that would be enough for only 300,000 users if distributed equally, which isn't going to happen.
This.
Steem is going to become a very, very scarce resource. I say resource because it is required to build SMTs , it is also the only way Resource Credits are created which is what provides the bandwidth for blockchain interaction. Through various capabilities and resource pools, RCs are going to be come a non-voting economic instrument that is going to have large effects on the future of Steem. RCs will likely have their own market for trade and delegation that applications and use for their own users and, potentially distribute back an SMT in some kind of payment.
With a value applied to RCs, there will be an additional reason to keep Steem powered up making exchange Steem scarcer and price increase. As price increases and some people sell, RCs become scarcer and their price goes up (depending on demand) meaning there is a push/pull dynamic with a cross tension. Great for price, ard for decision making considering that once the Steem is sold, one might never get it back again if demand increases.
However, scarcity of Steem really isn't a problem for the applications as long as they have enough bandwidth to power their users. Again, it doesn't actually take that much because essentially RCs can be delegated to an account and dropped from an account dynamically (at least at some point) as an account only needs them while interacting with the chain. They can get them at the door on login, leave them on logout where they then go back in the pool for the next entrant.
But then, where is the value of being on an application that doesn't distribute Steem? Well, they can have their own SMT tokens as you are already aware and, they will have their own values themselves. The other thing that people don't acknowledge is that while currently the plans are generally for an application to have their own token, that not necessarily be the case in the future. For example, a group of applications could share the same SMT and empower their community across a suite of applications that all leverage the Steem blockchain. There could be hundred and thousands of applications but there need not be an SMT for each.
Why would they stay on Steem then? Well, this is where Steem also has an advantage if it can pull together a high quality and scalable blockchain and this is why the development of the blockchain and making sure that it is reliable is so important now. As we can see from experience, developing a blockchain is not always an easy task and small applications are not going to want to have to go it alone as it will take a massive amount of resources from their core competence. So, rather than own, they can lease the lines from Steem. Lease is the running of the SMT and if they don't have their own, some cost in RCs. Again, that cost could be a distribution mechanism of their own SMT to delegators.
What this all could mean is that while Steem continues to decentralize and fracture into applications and communities above the blockchain, the SMTs will slowly build their own economic and value creation models by providing content and services to consumers and users. There are thousands of areas they could cover and there can be a very high level of diversity in what the tokens can do while they travel across Steem as their electrical wiring.
As I said above, the community is the thing that makes and breaks Steem in the long run as it will be the community that develops and supports the various applications. However, it is also the community that protects the applications, provides use case, customers, consumers and the resources required for it all to come together. Having community backed SMTs nested into the Steem blockchain provides a great deal of risk management security as failure of nodes doesn't result in failure of the greater project.
For users looking to earn, they are able to take their own startup and early adopter risks on SMT-based platforms that could very well out-perform Steem in price if successful yet, still run on and add value to the Steem blockchain and its users. Essentially, an SMT platform or idea could become wildly popular under the right conditions and put massive transaction pressure on the steem blockchain. But, it doesn't need to.
None of the applications really have to be super popular as long as enough are successful enough that they have users willing to use them. Some might be very large operations, others much more cottage industry but, that is fine. Steem becomes a core backbone of the new internet that empowers many and any.
The analogy of blockchain islands works well here as essentially what Steem becomes is an expanding archipelago with the expansion driven by the demand of users who are both currently on and yet to come. While if looking at these Steem islands from the blockchain view the connection between is apparent, from particular islands, it is not necessary to see the connection at all, each could appear to be gloating independently while being fundamentally tied together by Steem.
A blockchain of islands.
Now, a lot of the future depends on demand on the blockchain which means, demand on the applications here. while the blockchain gets more efficient and scalable, the developers keep developing and in what will seem a very short time once it happens, billions of people are going to start using the tokenized world and each of them are going to be using more than one token for various things. What is going to be interesting is that there will be people holding several Steem-backed tokens and, they might never have heard of Steem.
It is something that we forget here as we are quite immersed into the blockchain technology and the current going ons but in the future, most users aren't going to care anywhere near as much about how things work or even why they work, they will just want them to work. There aren't many people who understand 5G protocols and technicals in the world, this doesn't stop them from using it.
Why the community is important for Steem isn't just as the consumers, contributors, developers and investors, it is because it is a growing community which means, no matter if an account or an application, no one ever needs be alone. This is from an investment risk and, a personal perspective. In time, the power of Steem driven communities through SMTs, RCs and the people who use and interact in a million different ways are going to hold an enormous amount of value and as a group, a huge amount of influence.
Keep going if you choose.
Taraz
[ a Steem original ]
Can you keep the excellent shill posts to a minimum until I've accumulated more SP please?
Great read, underlining the importance of Steem Power and Resource Credits as we steadily head towards SMTs.
I was going to save this for my own shill post - a quote from someone who I highly respect, given to me in a DM the other day:
I want that 50K, but I'll settle for somewhere between gangster and madness by the end of 2019 :)
I have to aim for madness now as I am already gangster - but you met me so, you already know that. ;D
Given a bit of development, patience and what is happening in the industry, this is going to be massive.
oh well I just got my first 1000 after a year. let's see what 2019 brings. I will do fine with retirement money but if I get to madness that will be just fine.
I've been reading in on a couple of posts by @steevc recently relating to supporting Red Fish (<500 SP) to give us 10,000 Minnows (>500 <5000 SP) swimming in the Steem Ocean.
There is a debate regarding the increasing need to buy a little Steem in order to grow, and I think that your account is a possible case in point. Excellent and thoughtful content will get you there, but at an increasingly slower rate it seems.
Not very well worded. I'm not suggesting your personal need to buy, and trying to state that even with some of the best content growth is much slower than in the past.
Congratulations on reaching 'retirement' levels :)
yeah I have bought in the past but I sell most of the steem I get although I do not power down. It gets harder and harder every day as you said but my options are limited. Well we will see what will we see.
I'm hoping we can encourage more support of redfish and minnows as we need them to stick around and not just get frustrated. If they can buy some Steem to power up then it shows they are serious. It's not that expensive to buy your way to minnow.
The Redfish and Minnow Power-up leagues seem to work quite well. A reward for powering up tends to help :)
I haven't looked into those yet. I am happy to work with existing projects as I don't want to take on too much work for myself.
I became a dolphin this week and I must give some credit to the Power-up League for helping me track my progress each week and paying out rewards that made it fun for me to reach my goals!
I'm close to 80k. Is that good enough, hehe?
I think that is 'insane mode' :D
By this guys reckoning, you are home and hosed. Just that simple task of holding now :)
As it happens, I just recently passed 10K and I’m only a few months away from retirement. Coincidence?
:)
Sadly there were no time-frames and it does look as if you might be a bit early with that milestone. Congratulations! I hope there are now many years ahead with your foot off the gas, powered by Steem :)
Yeah, with all the 3- and 4-digit predictions I’ve seen for Steem, none seem to provide a timeframe or speculate about whether fiat hyperinflation might be a factor. $1,000 Steem wouldn’t be much to cheer about if a bottle of cooking oil went for $27,000. 😜
You make a good point.
I should pay more attention to #food in the future incase I can no longer afford to use traditional egg-frying products 😬
You make a good argument for the future value of steem / rcs / smts.
I think a very important part of this will be when people don't even realize they're using blockchains and they use dapps/dev projects because it is useful, fully functional and rewarding (tokenized).
Like you said, we don't need to know how it works it just has to work.
Steem's capabilities (tx speed/ no fees) make it a great place to build and when vibrant communities are added into the mix it makes it very attractive. Hopefully when/if smts are released people will see its real potential.
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This will be the point that people are getting on the bus, paying on a blockchain and have no idea what a blockchain does. Mass adoption.
The no fees is going to potentially be a huge advantage for Steem once transaction volumes increase significantly across all the chains. Other chains are likely going to have to decrease their fees or make them free to compete.
I wonder if 2 stage delegation will be possible at any point.
Say Nike launches an SMT and onboards users through their site; as it stands in order to delegate that SP, Nike would need to own it themselves.
Could we see a day when I delegate to Nike, who then on-delegates to their users?
I remember there was talk of separate delegation pools for voting power and resource credits.
That might be something we could perhaps automate in future. I delegate the SP to Nike, they take all the voting power and redirect the RC's to their users. Much to ponder.
This sounds like SMT-medium, and what Taraz describes below, SMT-Heavy :)
The pondering outside my mental capacity comes when Nike want to reward their community with their own token, which they've (correct me if I'm wrong) traded STEEM/SP for. From what I gather, this token wont give them RCs (to then delegate), and so another pool of RC is then required to give their users energy to transact.
I'm glad the SMT topic is on the discussion board again, it's felt to me like a dirty abbreviation not to be spoken about in more than just recent months.
I don't think it is needed for the RCs through pools and it could be more dynamic where applications can draw upon a larger pool that many have access to and the pools could potentially be permission-based so that a delegating user can define what kinds of applications it goes to.
I think that later, more people may want to hold their SP rather than delegate but, who knows.
If what you have described was in the original plan for SMT then I can see why things are taking longer than originally thought!
Under the current setup, Nike are going to need that SP to reward their community, and the community will need the RCs to interact. Nike would also need the SP for new account creations?
With a Nike SMT to reward, do they then need less SP?
I wonder if a MB or Smart Market is required for RCs, what the plan is for speed of return of RCs to a user/pool?
Nike need some Steem for SMT creation but for account creation there can potentially be a pool of accounts available that the community provides. I actually have a feeling that they could use an SMT on their platform without having Steem accounts but unsure.
I think a smart market (smarter than smartmarket) will be the way to go to manage resources as well as a market for SMTs themselves.
I've not checked how many account tokens have been gathered up yet but I suspect it is not enough to on-board a million Nike users. Just another reason to keep collecting SP :)
Definitely not but, those costs for creation can be changed also as what happened with RCs needed to interact. I would say still collect :)
True. I can't see them being heavily discounted though just because we have a rush - seems more likely that the cost would increase?
This is about to get even more exciting as projects are taking a lead in establishing markets for these SMTs! First Daybit and now @freedomex which will be hosting its launch here in under an hour. This has gotten me really excited as we will finally start to have a Steem based economy soon! I don’t like dropping links but here is my sign up link if interested!
Posted using Partiko iOS
Yep, it is going to get very exciting on a number of fronts soon both on Steem and in crypto. It b of in the stars.
In bed now but I will do it tomorrow or, remind me :)
It just goes to show you how one post this morning from Dan ended up making 3 posts. I realize now how important the RC's are going to be and may be the real value that you hold besides the value of Steem itself.
It is the way the interaction should work in my opinion, ideas feed off ideas, development is built on development. A community that talks together rather than competes with each other will go far. Well, some of the community has the right idea.
Funny enough I was just thinking along the same lines. I wish more of it would happen and sorry to change your mind on what you were going to post. I am glad you did though as it was very informative and who knows may bring out some more ideas.
I had thought that SMTs were basically cancelled, at least it seemed like that to me. It was a really big disappointment for me, as I had expected SMTs to bring a lot of value to Steem ecosystem. I'm afraid that without SMTs Steem might be missing out one of the biggest opportunities to be something remarkable.
I don't want to lose faith in Steem. It's already good, but it could be so much more.
They were pushed back, not cancelled. There are actually SMT-esque tokens now through Steem engine (I think it is called). Lots of things happening all over the place here, I am having troubles keeping up.
Well that's good news! It might be that I assumed the "SMT pushed back" is basically "Haha it'll never happen". Especially when Steemit inc. was firing people the same time and focusing on different things than SMT development.
Maybe it could be a good time to buy some more Steem.
I think efficiency of the chain takes precedence at this point. Stinc are working on making it more scalable and do applications can run their own full nodes at a lower cost.
As someone once said, it is always a good time to buy more Steem :)
And never spend more money on crypto than you afford to lose :D
Can't lose what you don't have. :D
I have bought small amounts here and there in the hope it will help long-term but, who knows. I can live off tuna for a month longer :)
Got to work faster at accumulating :D
Thank you for the confidence and encouragement
It is an endless feeling isn't it? :D
SMTs will be very important. Steem could end up like Gas if an SMTs become massively successful. Kinda like what happened to ethereum when Tron and Eos and soon BNB jump. Or Neo and Ont. Hope the developers are on top of things to keep Steem relevant for tokens that can survive well on their own. I am just wondering how it will make Steem more speculative. Will power downs be more common or will deligations be more common?
There are so many options possible and one of the pretty cool things is that Steem isn't necessarily limited to choosing just one of them. I hope the devs are on top of it too but there is an order of business for development.
The possibilities are endless, and while am slightly less optimistic about its future, I desperately want to be wrong
I hope you are wrong too :D
I've now read this 3 times..... Great info and maybe as we all go forward I will actually begin to understand it!
:)
Sorry for the typos, I will fix them in the evening hopefully. Once it starts to click with your daily actions, it will be clearer how things work but looking forward, it is confusing as hell :)
It is funny how I never notice typos when I'm reading quality writing that I am interested in. But other times I'll be reading a post and the typos just leap off the page. I never noticed a single typo in your post which I intend to go back and read again this morning after I'm a little more awake.
There are plenty but, I am glad you missed them :D
If you have questions just ask as I don't mind thinking more on these kinds of things and the better the understanding, the clearer it all becomes.
This begins to make more and more sense to me. And I get more and more excited with each new bit of understanding!
I now have more questions then I did before I read this. Some of the questions I have I don’t even know how to ask them.
If there is an RC token developed why would you even need the Steem token ? Steem token produces RC but if RC has its own token to produce is own RC then Steem is out.
Plenty of stuff knocking around on RCs, I found this one via google: https://steemit.com/steemit/@dragosroua/replacing-bandwidth-on-the-steem-blockchain-with-resource-credits-what-is-this-and-why-do-you-need-to-know-about-it
This answered some question
If RC becomes transferable, then this is wrong and it will open up a whole different animal.
unless that mechanism is Steem.
if we transfer,delegate steem to someone else do they also get the RC ?
Interesting stuff now that I am off the Drugs (painkillers and such) and things make some sense. as much as we would think it is, the internet is not free to use
RCs are not a staked token, you are already using them right now to interact with the Blockchain. You can't vote with them though and at the moment they can't be delegated. If you go to steemnow or steemd.com you can see your RCs.
8,067,850,837,250 RC
I think I need more SP. a lot more. However I have exceeded dan’s 3000 Steem minimum
Some people are greedy and want to take 50 others (@1000 steem ea) Steem for themself. ;)
Lol, yeah, greedy people...
Me however, I am just keeping it safe for them.
And I appreciate that. 👍 Just hold on to mine. I will be withdrawing it slowly over time.
Ok...You managed to squeeze another 50% up-vote out of me...I mean 'the reward pool...Probably deserved 100% but I'm feeling cheap today :~)
Should I post again for another 50? ;D
Thank you and your cheapness.
Nawww...No need to post again for another 50%...I'll stick it in with the comment :>)
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I hope that I can gather more SP
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