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Giant Insight #3

09-10-2018

We’ve stated multiple times in the past that we had chosen the go the hard way when it comes to the development of cryptocurrency projects. To ensure the conditions under which the Giant blockchain is actively used for years to come, at the early stages we have to get over some difficult obstacles on the way.

To better understand the current competition of those who aim to create a popular blockchain with the Smart Contracts technology, we strongly recommend to read the article Scalability Tradeoffs: Why “The Ethereum Killer” Hasn’t Arrived Yet.

We would like to draw your attention to the two criteria which make any blockchain widely used:

  • decentralization levels and entry barriers;
  • transaction fees.

One can easily notice that both these factors are negatively influenced by the high price of cryptocoins. The high price of masternodes raises the entry barriers and undermines the growth of decentralization, thus depriving the new blockchain of its main competitive advantage. This aside, expensive coins lead to high transaction fees – and this, in turn, increases the expenditure of the business that uses this blockchain.

Therefore, a serious contradiction emerges. The masternode projects are viewed as successful and attractive to investors if they demonstrate a high coin price and ROI. But, as we have already deduced, the high price of a cryptocurrency undermines the bright future of the corresponding blockchain.

You have almost certainly figured out by now what motivates our decision to have high block rewards. They lead to an excessive Giant Coin (GIC) supply and slow down the price growth. This is a necessary cost for the future of Giant as a good smart contracts execution environment.

Despite all the obstacles outlined above, our project has been managing to keep the price relatively stable most of the time it existed. By watching the growth of the Giant community and of the masternodes quantity, we can state that Giant had reached a significant success in the field of network decentralization.

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