Why QORT stands out as a blockchain digital asset!

Opening up any crypto trading platform page nowadays, one may be awestruck at the sheer number of coins and projects available to invest in and learn about.

Indeed, at the time of writing, there are about 11,000 different cryptocurrencies available!¹ But how are blockchains associated with coins, and why are coins even needed to exchange data between users of the network? The answer is a complex one, but here’s the gist of it:

There are a litany of cryptocurrencies available on the market²

At its core, blockchain is a secure way to record and share information across a network of computers.

Imagine it as a public database that anyone can access, but no one can alter once an entry is made. Each new entry, or “block,” links to the one before it, creating an unbreakable chain that strengthens as more blocks are added.

Different blockchains use unique protocols to create these blocks, embedding information that ties each block to its predecessor, ensuring the data remains secure and organized.

When a new block is added, it can include a “minted” digital asset—essentially, a newly created item on the blockchain. Users can then exchange these digital assets or even create new ones as the blockchain grows.³

Mining on Bitcoin allows the network to remain secure and free from centralized control ⁴

There are many different types of digital assets possible on blockchains, including crypto assets, Non-Fungible Tokens (NFT), central bank digital currencies (CBDC), securities, stablecoins and tokens.⁵

For the sake of this blog we will focus only on cryptocurrencies and the value they provide to blockchains. This branch of blockchain technology is called cryptoeconomics, and it covers a wide breadth of different topics related to cryptocurrencies and the role they play in blockchains.

In essence, in a decentralized, peer-to-peer network, where any actor is corruptible and can act selfishly, there needs to be an incentive structure in place to motivate the majority of the peers to uphold the integrity of the ledger.

Bitcoin was the first to implement such an idea, with its Proof-Of-Work protocol, which rewarded miners for adding valid transaction blocks to the chain, and keeping the system honest.

With cryptoeconomics, Bitcoin created a new kind of trust—one built on math and code instead of legal contracts.⁶

Qortal is another blockchain project where the integrity of the network is maintained by the peers' nodes verifying the transactions that are done over the network. They are rewarded with QORT through verifying the transactions over time, accumulating more rewards the longer they have their nodes running. This is a different protocol than on Bitcoin, and is known as Proof-Of-Time.

However, QORT plays another important part in the decentralized infrastructure known as Qortal. In fact, given that the Qortal motto stands as “rebuilding the internet from the ground up, completely decentralized; a new ecosystem free of any outside control”, it becomes apparent what other purposes the QORT coin can accomplish.⁷

It functions as a currency within the parallel economy found on Qortal, while simultaneously protecting the decentralized and independent nature of the project.

Anybody building a Q-App on Qortal (an application that is decentralized and utilizing the Qortal blockchain to store its data) can accept QORT payments for offering services, selling products, or even crowdfunding new software development within the platform.

Furthermore, anyone running a full node can also “mint” QORT, which means earning a reward for taking part in the consensus process of the blockchain. Anyone can earn QORT merely by providing their node to the growth of the network, and helping secure newly created block.⁸

QORT also serves as a fee mechanism within the ecosystem, allowing anybody to publish Q-Apps, Websites, and even files to the blockchain. The fees serve to maintain the integrity of the blockchain, being paid to the minters for running their nodes.

So one can truly call QORT a “utility” coin, given its multifaceted purpose. This allows it to stand out from many other projects, whose coins do not offer much in terms of intrinsic value.

QORT is not your average Joe coin…⁹

So, why are coins necessary for decentralized networks like Qortal? Well, they are the bulwarks to the network’s decentralized nature, and guarantee its freedom from third-party interference.

Bitcoin was the first mover in showing us you can encourage the majority of people in a blockchain to act honestly through a mining reward structure. Qortal took this a step further by allowing users to also build businesses, apps, and much more on top of the blockchain, and be rewarded for providing value to the users of the chain.

QORT is the backbone of the parallel, decentralized economy that is brewing on Qortal, and which continues to grow every day. It is the epitome of a utility coin, and will continue to grow in value as Qortal’s economy grows as well.

If you’re new to crypto, and this blog was informative for you, it may be time to look into Qortal more closely, by installing the Qortal Browser Extension perhaps, and afterwards obtaining your first QORT coins. Come join a new internet, where blockchain and cryptocurrency are much more than buzzwords!

References

1. Coinbase. (n.d.). Why are there so many cryptocurrencies, and why do we need them? Coinbase. https://www.coinbase.com/en-gb/learn/crypto-basics/why-are-there-so-many-cryptocurrencies-and-why-do-we-need-them

2. Ferrari, J. (2024). Image on 11,000 Cryptocurrencies [Image created using Canva]. Canva.

3. PwC. (n.d.). Understanding cryptocurrency and digital assets. PwC. https://www.pwc.com/us/en/tech-effect/emerging-tech/understanding-cryptocurrency-digital-assets.html

4. The Motley Fool. (n.d.). Financial infographic [Image]. The Motley Fool. https://m.foolcdn.com/media/dubs/images/original_imageshttpsg.foolcdn.comeditorialimag.width-880_8y7ib2T.png

5. Investopedia. (n.d.). Digital asset framework. Investopedia. https://www.investopedia.com/terms/d/digital-asset-framework.asp

6. Voshmgir, Shermin. Token Economy: How the Web3 reinvents the Internet (Token Economy: How the Web3 reinvents the internet (English original & foreign language translations) Book 1) (p. 45). Token Kitchen. Kindle Edition.

7. Qortal. (n.d.). Qortal 101. Qortal Wiki. https://wiki.qortal.org/doku.php?id=qortal_101

8. Qortal. (n.d.). Minting overview. Qortal Wiki. https://wiki.qortal.org/doku.php?id=minting_overview

9. Ferrari, J. (2024). Image on QORT…Way More Than A Coin! [Image created using Canva]. Canva.