Zerocoin was really the first of it's kind, that's where all of the hype comes from. The promise that Zerocoin offered initially was a lot stronger than anything around, and many people heard about Zerocoin long before they heard about CoinSwap or CoinJoin (and subsequently Bytecoin).
>I'm really skeptical about the wisdom of splitting up the crypto-currency adoption network effect just to introduce some new transaction features.
As someone who's been working on cryptocurrencies, I think that most of the Internet of Tomorrow is going to be driven by a set of cryptocurrencies that all do different things, following some of the primary principals of Unix. Storage and computation, for example, are services that I think will eventually find homes in cryptocurrency. Already you see things like MaidSAFE and Ethereum attacking these problems. But you also have problems that need to be solved like DNS routing, public random numbers, time synchronization where the modern solution involves centralized services.
Right now, there's not much that allows cryptocurrencies to communicate, but that's quickly changing and should move forward much more in the next 5 years. Merge mining, colored coins, and decentralized inter-currency exchanges are just the beginning.
There are a lot of problems that cryptocurrency has the potential to solve, and I think it's foolish to hope that a single cryptocurrency that will effectively solve all of them. But I also don't think that having 12 or 200 different cryptocurrencies means that any individual currency needs to be made weaker. Merge-mining is a good start, but I think that inter-currency cooperation and protection will continue to get better.
> Zerocoin was really the first of it's kind, that's where all of the hype comes from. The promise that Zerocoin offered initially was a lot stronger than anything around
Can you really say that Zerocoin was the first of its kind when it still doesn't actually exist? There is a crypto library that implements the blind accumulator but thats it. Not a usable system. Bytecoin and CoinJoins are things you can use today.
The anonymity offered by systems that exist is inherently better than that offered by ones that don't exist, I think. :) The Bytecoin anonymity is better than Zerocoin's too, even ignoring the whole existence part.
(FWIW, I (and others) were posting about CoinJoin a long time before Zerocoin was a twinkle in anyone's eye. But the suddenly popularity of Zerocoin made me realize that I needed to attach a compact and snazzy _name_ to the idea if I wanted people to pick it up and run with it. Doing so appears to have been a pretty massive success. ... I worry a lot about people paying too much intention on someday-ware and as a result not going out and building things that we can use sooner than someday.)
> As someone who's been working on cryptocurrencies, I think that most of the Internet of Tomorrow is going to be driven by a set of cryptocurrencies that all do different things, following some of the primary principals of Unix
Well, what do I know. ::shrugs::
To me "driven by a set of cryptocurrencies that all do different things" doesn't sound like unix it sounds like saying that "in the future computer communications will be enabled by orthogonal networks that each do different things".
I think currencies just like communications networks benefit from Metcalf's law... So it seems silly to me to artificially divide up the world into separate currencies just to get different transaction features. It's technically unnecessary. There is, I think, an argument for dividing things up for different economic approaches— e.g. freicoin's inflationary currency— but for transactional purposes, it just isn't necessary. You can have one cryptocurrency being used on many different transaction networks (including decentralized ones). And I think that if in the future these things continue to be used at all, we'll find ways to not create artificial friction where it can be avoided.
>sounds like saying that "in the future computer communications will be enabled by orthogonal networks that each do different things".
Well, if you consider ntp to be one network, and the dns system to be a separate network, and the CA system to be a separate network, that statement seems to hold pretty well to today's internet. I'm not sure if you were disagreeing with my statement.
>So it seems silly to me to artificially divide up the world into separate currencies just to get different transaction features.
Just as you can have one cryptocurrency being used on many transaction networks, you can have one transaction network that uses many cryptocurrencies. Just like the ntp/dns analogy, just because Bitcoin and Ethereum are separate systems doesn't mean that I can't actively use each for what it's most useful for. Each can still benefit from the users of the other.
It is an economic law that the least costly means of exhcange wins and predominates in any given niche and drives out all other means of exchange.
"Least costly" here does factor in convenience.
You can have a case where there is no clear winner---e.g. one type of exchange is harder to use, BUT more private.
So in summary, there is likely to be one predominant cryptocurrency, and at best maybe one or two others that offer nice things (e.g. more privacy) but at an additional cost.
If one cryptocurrency can offer all commonly-wanted useful features, it will strictly dominate all the others and drive them out.
That said, there are many, many potential uses for _blockchain technology_, such as storage and computation.
>I'm really skeptical about the wisdom of splitting up the crypto-currency adoption network effect just to introduce some new transaction features.
As someone who's been working on cryptocurrencies, I think that most of the Internet of Tomorrow is going to be driven by a set of cryptocurrencies that all do different things, following some of the primary principals of Unix. Storage and computation, for example, are services that I think will eventually find homes in cryptocurrency. Already you see things like MaidSAFE and Ethereum attacking these problems. But you also have problems that need to be solved like DNS routing, public random numbers, time synchronization where the modern solution involves centralized services.
Right now, there's not much that allows cryptocurrencies to communicate, but that's quickly changing and should move forward much more in the next 5 years. Merge mining, colored coins, and decentralized inter-currency exchanges are just the beginning.
There are a lot of problems that cryptocurrency has the potential to solve, and I think it's foolish to hope that a single cryptocurrency that will effectively solve all of them. But I also don't think that having 12 or 200 different cryptocurrencies means that any individual currency needs to be made weaker. Merge-mining is a good start, but I think that inter-currency cooperation and protection will continue to get better.