Bitcoin is the best, but the crypto innovation is shifting towards something else
As the first-ever cryptocurrency, Bitcoin has always dominated the market. But the real innovations and developments have shifted from cryptocurrencies to layer-two solutions like NFTs, DAOs and other utilities.
In the current market, the price of bitcoin fluctuates in a wild manner. It has reached an all-time high of US 64,900, but at the same time, it has failed to stay at that position. Therefore, stability is not the feature you would get from bitcoins. With the institutional buyer entering the market and corporate companies such as Microsoft, Tesla accepting bitcoin as payment has given bitcoin the opportunity to reach further heights, but nevertheless, it has become too dependent on the investors and buyers to pull up its value.
On the other hand, Decentralized Autonomous Organizations (DAOs), Non Fungible Tokens (NFTs) are constantly getting upgraded and popularized every day. A large number of people are becoming interested in this field of blockchain technology.
We can look at Dom Hofmann’s ‘Loot’ project as an example. Instead of taking any conventional approach, Loot was offered to be minted for free by those people who were willing to pay the price of gas.
Through Discord, discussions were added, and any individual who came up with a unique idea was free to launch their own derivative agreement, and Loot holders can reproduce the listing and minting cycle. The project soon became valued at more than US 50000 dollars.
The most intriguing part about the project Loot was that it created a model that soon became the norm. The entire process involves people creating a specific product (be it NFT or a protocol) and then announcing it to an interested community. Allow people to mint tokens freely and keep the supply limit between 7777 to 10000. At last, leave the rest to the community, enthusiasts, speculators and OpenSea.
The bottom line with the increasing popularity of DAOs and NFTs, the real innovations and developments are taking place in this domain, and this layer-two ecosystem will continue to exist.