Do all blockchains need incentivizing tokens or a native cryptocurrency?


Hi it’s Keir Finlow-Bates here, and today
i’m gonna answer the question: does a blockchain always need a token or
associated cryptocurrency in order to function, and I think the answer is no if
it’s permissioned blocking, because then the service that the blockchain provides
may well be enough to keep the wheels in motion and have the system functioning,
whereas for a public open blockchain I think the answer is probably yes because
there needs to be some kind of incentive for people to run nodes and maintain the
system. Now obviously if you look at something like Facebook people are happy
to go and use the service and as a result give away all their personal data
and stuff. It seems they’re not bothered by that at all and so it is possible for
people to give “value” to a system in return for the benefits that they
perceive themselves getting from it, however when it comes to an open public
blockchain I can’t really see how the Facebook or other social media model
would actually function for that blockchain, because there needs to be
some kind of immediate value return. Anyway that’s my take on the question of
whether or not blockchains need their own tokens or cryptocurrencies, and
see you in the next video soon. Bye for now!

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