Bitcoin Deemed Fairest Of Them All As No Altcoin Has Had The Privilege Of As Fair A Launch As BTC
Launching a new cryptocurrency for the industry is a delicate issue. All cryptocurrencies have dealt with the frustration and criticism that comes with the distribution schedule of a coin, though the one with the fairest launch has easily been Bitcoin.
The best time to get in on any innovation is by starting when the concept is still young. Though every tech does not bring enrichment to the developers, Bitcoin and most others have. There was no initial coin offering (ICO), no reward for founders, and nothing to set the precedent, but Bitcoin was highly lucrative for some of the earliest investors.
In fact, these investors have been able to launch subsequent cryptocurrencies as a result of their work. Perfect examples of these investors include Vitalik Buterin (Ethereum), Charlie Lee (Litecoin), Dan Larimer (Bitshares, Steemit, EOS), Zooko (Zcash), and Jed McCaleb (Ripple, Stellar).
Even though the altcoins launched soon after Bitcoin’s success, they still received criticism from the public. Zcash has a 20% mining reward, which has remained controversial, despite being used for the development of the platform. They have also been investigated for the lacking in zero-knowledge proofs that would otherwise bring more validation.
Ethereum has been critiqued for their coin allocation to certain whales in the industry and has been accused of developing their tokens as securities, rather than the utilities that they are meant to be. The EOS uncapped ICO, which lasted an entire year, frustrated the community.
Ripple has been the subject of plenty of debated over the validity of their decentralization, holding the majority of XRP, and the lack of evidence of Ripple’s originating activities.
Grin and Beam are the newest protocols to enter the industry, and they share the Mimblewimble privacy technology that has caught the interest of many crypto enthusiasts. Apart from that, they are much different. Grin’s team is fairly anonymous, lacking in founders’ reward and pre-mine, though it still offers a community platform that lacks a leader. Beam, on the other hand, is publicly known in their team and has a founders’ reward that spurs the development of the platform.
The fairness of the launch of Grin is still debatable, considering multiple factors. Incentives need to be aligned when a crypto asset is launched, which motivates the rest of the people involved the motivation to devote the work needed to the project. The incentives keep users going when the platform is suffering as well, which is much different from Bitcoin. Bitcoin supporters had none of those guarantees, so they knew the risk was high.
In a post on Uncommon Core, an article titled “Grin and the Mythical Fair Launch” was written by Arjun Balaji. In it, Balaji says that “a fair launch offers equal opportunity — not equal outcome — to acquire a coin 1) over a long period of time 2) at a relatively equal price.” In the end, the writer concludes that the launch of Grin ”excels in both dimensions.” However, without any reward for the developers, finding the funds to continue working.
Based on a recent report on the news site Bitcoin.com, one developer has been working to raise $63,000 but has only accumulated $25,000. Due to the setup of Beam and other projects like Zcash, there is no issue like this.
While it is easy to attack the way that Bitcoin lacked support for creators at the beginning, and how the mining back then was set up for thousands of bitcoins mined at a time, no one can argue that Bitcoin survives. Without the foundation of Bitcoin originally, there would not be any of the thousands of cryptocurrencies that are around today.