As the field of blockchain and cryptocurrencies continues its quest towards global adoption and use of the revolutionary technology, education on the key concepts in the industry is key. Top cryptocurrency personalities are increasingly opening up the technicalities involved in the technology making it easier for the mass population to understand it.
In a MOOC on MSc. In Digital Currency from the University of Nicosia, Andreas Antonopoulos, a crypto influencer and open blockchain expert, speaks on the alternative uses of blockchains. The Q&A session highlights the overview of popular alternative cryptocurrencies and their functionalities; such as Ethereum, Monero, Bitcoin Cash and the differences between public and private DLT networks. Furthermore, Andreas speaks on what constitutes Key Performance Indicators (KPIs) in blockchains.
One of the questions asked is on the recent proposal by Vitalik to introduce gas fees on the wallet transactions. The question reads,
“What do you think on the proposal by Vitalik [Buterin] to introduce gas fees on the wallet transactions?”
In his response, Andreas clarified that the proposal is voluntary and will not require a consensus to introduce it to the blockchain. The key word is “common practice” and not as a general rule to the Ethereum protocol. Bitcoin’s blockchain has a similar practice where some of the wallets donate a small fee of the transactions made to the wallet developers.
“What Vitalik proposes is to make this [gas fees on wallet transactions] a part of the best practices acts to ensure the development of wallet software is better funded.”
The Bitcoin enthusiast further also addressed questions asked in his previous sessions and the current session. One of the session members asked a question on the KPIs on blockchains and what indicators we should use. The question reads,
“Should we consider code commits, blockchain activity, number of DApps, or a number of peers as key performance indicators (KPIs)? What are the metrics for success?”
In his response, Andreas suggested that the KPI you choose depends on what you are trying to achieve. For example, a trader, developer and an interested party in blockchain technology may all have different metrics to measure the progress of the blockchain. It depends on whether the digital asset is being held for long term investment or part of your portfolio in the short term.
He further says that the metrics are difficult to measure and different persons can have different views on the measurements. He offered an example on the common metric where a huge investment during the ICO is equated to an interesting and revolutionary technology. He says,
“For me, the blockchain that has the most money invested into it isn’t necessarily the most interesting blockchain. If that blockchain is centralized and owned by a bank, of course it has lots of money invested into it…however, this is not what makes it have the most freedom, the most political empowerment or economic inclusion to people.”
He concluded saying that most metrics are hard to measure and people in the community should refrain from using metrics in the field to bash other projects. The selection of a metric based on the overall stance of the community or a biased opinion should be avoided. Blockchain KPIs are not a zero-sum game as most investors tend to believe. Selecting a blockchain that actually solves your problem should be the key metric whether you are a dApp developer, trader or user.
For more on the MOOC by Andreas follow the video below.