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For more information on the subject you can read our articles on decentralised networks consensus. As a charter, a protocol is a set of rules that intend to govern the operation of the network of participants. For example a charter of local currency will state that only organic products can be purchased with the local currency.
In the same way, a protocol will determine how many tokens the members of the network should receive for participating to the development of the network. The bitcoin protocol for instance provides that minors will receive This compensation is justified by the fact that these minors have allocated the computing capacity of their computer installation to complete the mechanism of the proof of work and add blocks to the blockchain. The blogger who is paid to post a quality article on Steem or a user of Augur that receives a dividend for his correct predictions, are similar exemples.
Each protocol is different and adapted to the economy developed by the network. Being open source, it can also be improved, completed or duplicated by anyone. The purpose of a charter and a protocol is the same, that is to create an ecosystem with specific rules, its own currency and the purpose to resolve a problem. This protocol as this charter can be applied to any problem and organized freely.
However the objectives of a local currency and a cryptocurrency are not necessarily the same. The objective of a local currency is to develop the local economy according to rules that are not dictated by markets. In other words, the goal is not to increase the value of the local currency.
This is the reason why the value of local currencies is generally correlated to national currencies. One token of the local currency will be equivalent to one euros for example. The objective of these currencies is however to attract a maximum of people who will exchange Euros against tokens of local currency as well as producers and resellers of products to supply the ecosystem.
These persons are adhering to the association by conviction and generally do not have personal interests to do it, except a small incentive during the conversion of national currencies a euros and often exchanged for 1. The philosophy is different with the crypto-currencies, because the value of each token can increase or decrease compared to national currencies.
The value of cryptocurrencies will therefore depend on the supply and demand rules on the cryptocurrencies exchanges. Users of crypto-ecosystems also adhere to the network by conviction, but also and especially because they are paid to do so. As we has seen they receive tokens for participating to the development of the network and they hope that their contribution will benefit the protocol and increase the value of the token they have received.
At the moment we are paying to use internet with the content we post and our personal datas. But internet of money is changing all this and being paid to post content or use a platform will soon be the rule. Be prepared to see an exponential increase of the pace of development of protocols. The purpose is different but these ecosystems are both seeking the same result which is the movement of their tokens.
Without this exchange of values, an ecosystem cannot survive. In other words the goal of these ecosystems is to increase velocity i. Blockchains Expert. Ledger Nano S review — The Safe of the futur . Binance review: all you need to know . We use the highest-grade encryption and other security measures to ensure your wallet and Crypto are secure. Transact on over 5 tokens using any of the leading local currencies. We handle all the exchanges. We support multiple wallets types under the same account.
No need for multiple wallets with different providers. With krabiti you have it under one account. Exchange local currency for Crypto. So Easy. Crypto is meant to be easy. Easy to use On your phone, on your PC or via the web. Deposit Options We support multiple deposit options including all leading credit and debit cards.