I’m not a huge fan of altcoins, but I do love when someone creates something new in the Bitcoin space that could change the way people think about money or finance. In the case of LTBCoin, we’re looking at a cryptocurrency or crypto-asset that could have an entire workforce and consumer base behind it. While the coin is definitely still in the early stages of development, it will be interesting to see what Adam B. Levine and the rest of the team over at Let’s Talk Bitcoin can think up over the next few months. Crypto-assets traded on decentralized exchanges are definitely the way of the future, but we still have some work to do when it comes to figuring out how all this stuff is going to function.
Backing an Asset with a Service
The main idea behind LTBCoin is to figure out how to back some kind of crypto-asset with a service. While stocks are an obvious way to get the job done, the idea of a crypto-asset brings the usability of a “stock” to a new level. If a crypto-asset is traded on a blockchain-based exchange, it can basically become its own form of money that also pays dividends or gives the asset holder voting rights in a decentralized application. The great thing about backing a crypto-asset with a service is that it basically gives people an easy way to invest their time and money into the growth of that service. In the case of LTBCoin, it would be giving people a financial incentive to help Let’s Talk Bitcoin grow as a media network.
Many other people have been talking about a similar model to the type of crypto-asset that will be created with LTBCoin, and Protoshares is basically a form of this idea already in action. At Bitcloud, the idea is to build WeTube on top of the protocol and allow publishers, users, and anyone else who interacts with the software to receive shares in WeTube on a regular basis. This would be like getting paid in Google stock when you uploaded a video to YouTube with advertisements. Although most of the economic ideas behind these kinds of projects still need to be worked out, it’s definitely an exciting time for creating new forms of crowdfunding. Perhaps we’ll eventually see a decentralized application that replaces Facebook where you actually get share in the social media platform for posting updates or “liking” something.