"Why Can Litecoin not get a sponsorship like this?" responded


Last week, a post emerged in Litecoin subreddit, highlighting a recent Dash partnership with the science fiction site FanDuel:

Why can Litecoin not get sponsorship like this? da r / litecoin

The conversation that followed included a lot of contrasts between fans of both coins, with many accusations and negativity. Many users were even banned from commenting from the moderators of the forum, despite no hostility and rudeness. Lost in this whole discussion, however, everything came close to a serious discussion about the original question.

So why can Litecoin not get sponsorship like this? Let me give you a thorough and long-winded answer.

The "spontaneous associations" are a myth

A great unsaid myth in the world of modern cryptocurrencies is that integrations with businesses and services tend to happen "organically" or seemingly out of nowhere. This is probably due to the incredible energy generated by the previous Bitcoin revolution, which has inspired countless individuals to use significant amounts of time, effort and funding to see it adopted everywhere. Since no one "worked for Bitcoin", there was not an internal memo explaining who was secretly working on what, and when the fruits of the vast work were revealed, it seemed a surprise miracle for the community. Now, fans of many projects expect the same experience of spontaneity without committing themselves to realize these dreams. When a project seems "ninja-lancia" a new exciting partnership, it is easy to ignore the work and simply become jealous.

Companies can not risk relying on unreliable systems

It often surprises me how immature and insensitive some fans of cryptocurrency may be towards the needs and concerns of businesses. It's understandable that fans get excited about a favorite project that is a hobby for them, while living their lives with reliable bank accounts, payment platforms, and reliable systems they can rely on to keep them from collapsing, while at the same time trying to push aggressive their business hobby without thinking about whether or not they actually work. Bitcoin has been built on solid technologies, yet it has burned innumerable business owners when the network has become congested and virtually useless. Litecoin reached an average transaction fee of $ 1.50 for only 144,000 transactions per day in December 2017. Regardless of future improvements on the road to help the network grow more smoothly and efficiently, it is not ready for trade today. Prudent companies would certainly do their research before integrating with a large payment network and using something unreliable would be negligent.

A DAO allows anyone to officially represent the project in trade agreements

The biggest challenge with the attempt to create commercial relationships on behalf of cryptocurrencies is their decentralized nature. With peer-to-peer digital currencies, almost all actors work independently from one another, making cohesion a bit difficult. If someone negotiates an integration on behalf of a cryptocurrency, that person can not guarantee much of anything, including the number of coin users who support such integration, who will be willing to provide additional funding, which consensus is surrounding the development roadmap, which network experience can be guaranteed, etc. With an autonomous decentralized organization (DAO) like Dash, on the other hand, many of these can be guaranteed much more "officially". A vote for the funding of the proposals guarantees a commitment on the whole network first two points, while other votes on the network ensure the last two. Anyone who has submitted a proposal of this type is an official representative of the network as a member of the Core team's business development department.

Self-financing does not mean that individuals or companies count the cost of a mass benefit

And, of course, the only important aspect in business negotiation: the money. Many attempts at integration take place as evangelization: spread the good word and hope that they will be converted. In the real world, most trade negotiations include more than just a petition and a delivery of information, but rather a mutually beneficial and mutually beneficial arrangement that includes value exchanges of some sort. Sometimes this includes money, for example in the case of a service that integrates a cryptocurrency that, in this way, incurs development costs and offers a promotional discount that entails a reduced purchase profit. A cryptocurrency without self-financing does not have anything similar to bring to the negotiating table, leaving negotiations to related parties such as payment processing companies that facilitate the use of said cryptocurrency, but which may not have its best interests directly in mind. A party with resources often negotiates in their best interests, not in the best interests of a whole group of people who have not put anything at risk. With a DAO, which benefits from payments: the network seeks to benefit from a commercial agreement, so the network pays off. This properly aligned incentive structure leads to many benefits when looking for new partnerships.

Do not cry when someone does something better than you. Watch your competitors, find out what happened in their success, decide if you have the means and the desire to do the same (or bigger) job, and then move on. But to simply express envy without any recognition of how these circumstances have come true, and without a plan to change them, it is the mentality of a loser.

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