With the rapid development of blockchain technology like a rocket launch speed, many new terms have been derived from the blockchain ecosystem. This article will talk about the three circles in the blockchain ecosystem, namely the chain circle, the coin circle and the mining circle.
Mining Circle
The mining circle refers to the circle that focuses on mining technology, and the related ecosystem is like buying and selling mining machines, opening mining farms, hosting business, and mining pool software. The mining community was originally the easiest, low-risk way to enter the blockchain in the early days, as long as the miners mined and sold them in the market to make a profit.
In the beginning, bitcoin could be mined using ordinary computers, but as the number of people mining increased, it became necessary to use professional computers with high computing power, also known as mining machines, to mine bitcoin.
Cryptocurrency
The cryptocurrency circle is a circle that focuses on cryptocurrency speculation and the issuance of cryptocurrencies for fundraising, i.e. token crowdfunding (ICO for short), commonly known as the cryptocurrency circle in the blockchain field.
Cryptocurrency speculation is similar to stock speculation in that it is a way to buy low and sell high in order to take advantage of the market, and it is often referred to as "leek harvesting" when one sees news of an explosion and enters the market without analyzing the actual situation.
ICO is the abbreviation of "Initial Coin Offering", known as "Initial Coin Offering" in Chinese, which became popular in 2017, but 99% of ICO projects have failed, and nearly 99% of ICO projects that have not failed are worthless in the cryptocurrency market. After that, coin issuance models have emerged to improve the disadvantages of ICOs, such as IEO (Initial Exchange Offering), IFO (Initial Fork Offering) and IAO (Initial Airdrop Offering).
If you have made good money in the stock market, it is not difficult for you to profit from coin speculation in the cryptocurrency world. You can't put all your assets into speculation, after all, there is no protection mechanism for the exchange to increase by 10%, and a crash is an infinite drop.
If you don't have experience in the stock market, you can enter the market in small amounts to experience what it's like to speculate in stocks/coins. Investing in stocks/futures requires complicated procedures, and if your assets don't meet the bank's expectations, you will be refused to open a securities account. And so on.
The experience of speculating in coins is much different. The experience of speculating in coins is just like operating in the stock market, but with more excitement and a lower threshold of entry and unlimited time.
Chainring
The Chain Circle is a circle that focuses on blockchain research and development, application areas and the underlying chain of blockchain applications, in short, it focuses on the research of blockchain technology and the development of grounded applications.
How to use blockchain technology to combine with practical application scenarios to create new business models and business values, and blockchain landing is a long-term research topic for the chain circle. The current maturity of blockchain technology still has a number of technical bottlenecks for researchers and developers who are actively exploring the application of blockchain in various industries, and there is still a way to go before blockchain can be integrated into human life.
While the cryptocurrency circle is content with making money from secondary market trading, the chain circle has actual bigger ambitions, with the belief in the landing of blockchain, neither deliberately pulling up the coin price nor making money through financial means, but only hoping that the developed project will really land and everyone will be able to use it, thinking that the market value will naturally rise.
The founder of the project knows how to get people in the cryptocurrency circle to invest, and also understands the financial operation and online community operation, and finally has the technology to support the implementation, so that the project can really land in the future.
Tokens
The English word for token is Token, a more accurate translation would be pass-through, but there is no Chinese language authoritative organization to organize the vocabulary of blockchain, so the translation is not unified. If a blockchain project issues a cryptocurrency, it is usually referred to as a token or pass-through. The basic properties of a token are circulation, proof of interest and value, and there are three main elements that are missing - interest, encryption and circulation.
The Token Economy
Because of the nature of tokens, it is possible to convert various proofs of interest into tokens, such as tickets, bonuses, points, contracts, intellectual property and so on. By putting these valuable assets into circulation on the blockchain, the market can directly reflect their value, reducing the cost of intermediaries and allowing creators, owners and consumers to reap greater benefits, as well as reducing the problem of theft and infringement.
