Public networks differ from private networks in that the system features native coins. These coins have different meanings and functions for different public networks. One of the key features of coins is the reward for people who voluntarily keep the network going. This business is working well and people are economically motivated to maintain the network honestly. If the coins were to serve merely as a reward for keeping the network running, they would not be of interest to mass adoption. In addition to this primary function, however, coins may have secondary functions that determine their future price. The abilities of a network can also help significantly. A decentralized platform will be more useful than a simple transactional network. The secondary function of coins and network abilities are far more important than the primary function of coins for the future of the project. In this article, we will consider what additional importance can be given to project coins, how the network can contribute to it, and what will affect the growth.
Network and coins value
It is often said that cryptocurrencies have value. In this context, the value of coins that are expressed in fiat is mainly mentioned. Have we forgotten something? What is the value of the network? Coins without a network would not work. In the case of public networks, this also applies vice versa. A network without coins should have nothing to reward the people who run it. One cannot exist without the other.
The question arises as to how the network and coins influence each other in terms of price. As we indicated at the beginning, we are mainly looking for the secondary function of coins and network abilities. In principle, therefore, we can deal with the following two cases:
- The influence of coins on the network value.
- Influence of the network on the value of coins.
In the case of coins, the value is expressed by the market fiat price. In the case of the network, this is more complicated. We could easily say that the value of the network is expressed by the price of coins. However, this may not apply in all cases. The value or importance of a network will be definitely high if it is highly adopted. We can say that such a network is very socially…