RE: Incent: Has anyone done some analysis on this?

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Incent: Has anyone done some analysis on this?

in incent •  8 years ago 

The first question is: Why this service has to be on a blockchain?

Blockchain is a great innovation, but it doesn't mean that blockchains should or could be used for everything. For many things a normal database is much better choice. If the whitepaper doesn't explain clearly why this service has to use blockchain to work properly, I would stay away from it.

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The blockchain is a great new technology, but like TCP/IP may take many years to mature. At Currency Alliance, we have also created a digital currency called comcoin to be used as a global loyalty point currency, but we only commit transactions above $10 to the blockchain immediately, while smaller transactions are settled immediately in a private, cloud-based infrastructure and then all smaller transactions are backed up to the blockchain hourly.

The Incent approach is conceptually very interesting, but in practice, it remains unclear how traditional supply and demand for the currency will ensure price stability (a risk that most merchants won´t be able to accept until economies of scale demonstrate stability).

How is the project interesting. After reading the white paper I have not seen anything that creates a viable business model. When people say interesting they usually mean something that could work. I could not see anything that makes sense from a use case perspective. I.e. How would invent create value for merchants and customers.

Good point.

The blockchain creates free infrastructure.

However i dont see a business model that makes sense.

Blockchain isn't free. At least somebody has to produce the blocks, and preferably there should be also enough developers to continue the development and fix the bugs. All those people usually want some money for their services and somebody has to pay for it.

True. Blockchain is not free. However it makes sense that with a blockchain infrastructure be ones easier for merchants. But u are right, a cloud service could do that as well and maybe even better