Ether Or Bitcoin winning the Crypto race

hi everyone,  Sheila here and ready to get into some new blockchain news.

Ether – the good ICO?

(I must apologize, I wrote this about a week ago, and forgot to hit ‘publish’ -it is relevant though – so here goes)

Today we’re going to talk about an article that came out in Forbes –  it is about a very short history of Ethereum –  I highly recommend that you read it.

this article will be my take on that and a bit of a TLDR. (too long didn’t read) for the non geeks in the house.

even if you haven’t been using the blockchain you should know what Bitcoin is. Bitcoin is both a cryptocurrency  and a payment system. Just like Ethereum,  and Ripple,  and Canya –  all of these coins are built on the blockchain technology.

bitcoin blockchain wireframe

the one we are going to discuss today is called Ethereum,  just like Bitcoin it also uses the blockchain and because of its lower transaction fees and shorter transaction. Some experts predict that will overtake Bitcoin sometime this year.

What sets Ethereum apart from the rest?

Ethereum became famous because it Facilitates a technology also built on the blockchain – This technology is called a ‘smart contract’.  smart contracts or a condition-based contract that ensures that the buyer and seller  conditions are met  for fans change hands.

Ethereum offers two types of accounts –  those that are externally owned (they are controlled by private keys)  and contract right.

If you were to go out to the market now you would notice that most new ico’s or blockchain Technologies are built on an backbone and it is this and it is this aggressive progress in the Ethereum space that has many experts pitching it

So why do so many people prefer Ethereum over Bitcoin? learn more here.

Well it turns out there are a few similarities between Ethereum and BitCoin, and there are some pretty huge differences as well.

Ethereum does not offer block rewards, and a block reward is a system by which the computers thet verify every transaction (miners) will be rewarded once every single transaction on that blockchain is verified – this is how a Bitcoin is generated. Ethereum does not offer ‘block Rewards’ therefore every single transaction carries a fee – but in saying that currently Bitcoin transaction fees are much higher than Ethereum transaction fees. Melbourne SEO firms love crypto. – Why?

When a transaction is parsed – whether that be a Bitcoin transaction or an Ethereum transaction, there is a duration for that transaction to complete called it’s ‘block time’. The block time for Bitcoin is between 10 and 15 minutes versus the Ethereum block time which is around 15 seconds, this means that more transactions can be completed in the Etherium world then can be completed in the Bitcoin blockchain world every day.

There is a hard cap on the number of Bitcoins that can be mined currency Bitcoin has a 21 million Bitcoin cap the majority of those Bitcoins have already been mined but it is estimated that by 2021 only about 50% of The Ether coins would have been mine and there is an estimate of approximately 90 million tokens to be mined.

Something that we will touch on in a future post  is the difference between a ‘proof of stake’ system versus a ‘proof-of-work system’, Ethereum uses a ‘proof of stake’ system which essentially means ‘I can prove how many coins I have’ then there is the ‘proof of work’ system which is the one that Bitcoin uses. It is a system that determines the validity of the mathematics involved in verifying every transaction.

So why do so many people see if the Ethereum as more advantageous than Bitcoin?

Well Bitcoin was designed primarily as a ‘currency’ but a Ethereum can do much more using its ‘smart contract’ system –  this leads many large powerful companies like Microsoft to invest in it.

Not that Ethereum doesn’t face any problems –  in 2016 a hacker stole USD $50 million dollars worth of Ether and this resulted in a split in the Ethereum blockchain, namely Ethereum (ETH) and Ethereum classic (ETC).

Even with this fluctuation in the market Ethereum has seen dramatic growth in 2017 where it has grown by more than 12000% –  this is attractive to many investors, even though this volatility is scary that is still an amazing return-on-investment if you play your cards right. This platform is still so young there are a multitude of applications that could still be made on the ethereum blockchain infrastructure. Due to its popularity it has been enhanced dramatically over the last few years and although it has been challenged by many security problems it is still much less centralized than Bitcoin is, and is seeing a rapid evolution.

Over the past 2 years I have not seen one Ico built  all of the Bitcoin blockchain architecture every single Ico with investing in (in my opinion – which i don’t give because I am not an investment advice giver – dont take my advice)  has been both on the Ethereum blockchain –  the use of smart contracts means that many applications can be catered to by the ethereum blockchain.

I will give you two quick examples of how a smart contract changes everything –  1 a pizza delivery when you order your pizza $10 is placed into the smart contract and when the pizza delivery person drops the pizza off their GPS indicates that they have arrived at your location and the payment is processed,  if there are additional conditions for instance that you need to be the person that the pizza is delivered to then the delivery person can take a photo of you with the pizza.  

2 – Smart contracts work much better if they are conditional –  this doesn’t always make sense sometimes conditions are gray –  in this case the contract can be written to include a balance of probabilities IE was it more or less likely that a condition was met?  included in the smart contract concept is a arbitration process –  this does bring a fee into the negotiation so it is basically to have no unconditional smart contracts be for higher tickets items and they generally are.

Check back soon as we will be reviewing other cryptocurrencies and there blockchain architecture in order to determine which one  will grow in 2018.


Signing off


Why some start-ups and ICOs may not pass the bar…

Start-ups, why do we need them?

We often hear about amazing start-ups, we hear about the ones that succeeded and made it to the top, but for every one, there are hundreds, if not thousands of carcasses of those that had failed before them.

When we sit with a client, we often ask them to describe the reality within which we all reside, and if they do not explain the problem that their product or service solves, then we ask them to go out and revisit their reality.


If you are not presenting a solution to a problem, or the problem is insignificant – then what is the call to action, what is the trigger, what is the push required for someone to spend their hard-earned cash on your ‘dream – your golden ticket’ – if the problem isn’t there, then the solution is required.

Think about it this way, a start-up is the question, and what the start up does or provides – is the solution.

We like to work on the principle that a start-up addresses a present that is flawed, in order to make a more perfect future.

Now this may sound impossible, it isn’t, you don’t need a client whose ‘hair is on fire’ or is in ‘extreme pain’ – you just need to show them that the discomfort they feel now is only temporary, you need to indicate that you understand what it is they are going through, and that this discomfort is what prompted you on your journey to discover the solution.

The world is not a perfect place, there is pain and fear and uncertainty – the pain is closely tied to the uncertainty, and they need to understand that this is what keeps you up at night, its this pain that drove you to find the solution.

The 10X rule applies to entrepreneurs, regardless of their enthusiasm, merely believing that the novelty associated with a solution, wont drive people to participate. This is a problem seen in many start-ups across the board. People are under false impression that if they find something interesting – then the world will come with their wallets open, cash in hand ready to invest in their mind-blowing idea.

What is your cost per click? How many clicks are required to acquire a lead, – therefore what is your cost per lead, and once you have that down, how many leads are required to arrange a meeting, and after the meeting, how many meetings are required to acquire a customer? What is your cost per acquisition?  Now that you know what it costs to ‘on-board’ a new client – what is the average customer lifetime value? Their CLV? Is their CLV more than their acquisition cost? If so, by how many factors of multiplication, twice, three times?

Clients, start-ups and often even crypto start-ups with their shining ICO’s often overlook the CAC/CLV rule that rules them all. If the cost to get someone to want your thing, is more than the value derived from them using that thing – then you are running at a loss.

A breakdown of this function will allow a prospective start-up to decide is this is really a road worth heading down. Its really easy though – if the CAC is more than the CLV then its not worth doing.

With an ICO (Initial Coin Offering), the start-up should (best case here) take the combined costs of  all sales and marketing functions, (salaries, programs, lead gen, travel, products, OPEX and CAPEX etc.) and divide it by the total number of customers that purchased into the ICO (actually you need to give each customer the average value of each purchase) during the ICO period. If your total sales and marketing spend during the ICO was $1m, and you closed 1000 customers with an average purchase of 500 coins – each coin valued as $2.00, then your average cost to acquire a customer (CAC) is $1,000. – but, if each client then purchased $1000 worth of tokens then you would theoretically break even on the sale.

With most SEO agencies like ours, we would want to recoup the cost to acquire in under the 12 months – and in all reality we would want to do so within 2 months.

The valuations of an ICO doesn’t change in a linear time based fashion as it may with some other forms of start-up. Once a set dollar figure has been raised, it doesn’t mean that the coin or blockchain is now worth that much – in reality the supply and demand curve as well as the adoption of the currency in the market plays a role in determining the value of a given coin.

Finally, ICO’s fail if they just don’t deliver on their promise – if a start up set out to create a coin that was based on a block chain, and that coin doesn’t deliver, then the coin wont take off in the market, it wont be traded and without trade the coin becomes a ‘hoddle doddle’ – if its sits then it won’t grow, it won’t circulate and become one with the marketplace in which it can thrive.

An example of a 2 coins that have taken the market and grown well beyond any expectation are Bitcoin and Ethereum,  both have worked incredibly hard to overcome their initial adoption hurdle.

The main hurdle faced is based in relation to both ICO’s and Kick starters is called “Trust Management” – and it comes down to the ability of an entity to foster trust within its user base.

We will post another article specific to this endeavor shortly.