Saturday, December 9, 2017

The intelligent investors guide to Particl (PART): Part 3 - How will Particl succeed in gaining price appreciation, adoption and network effect where centralised anonymous marketplaces fail?


How will Particl succeed in gaining price appreciation, adoption and network effect where centralised anonymous marketplaces fail?

It's real simple. Particl is not a centralised marketplace so you would need to take the majority of the nodes down to compromise the network.


Contrast this with tradtional centralised marketplaces where taking down a handful of servers can shut down the entire service leading to loss of any funds held there.

  • The Particl nodes can be run on the tor network for added security thus the network is inherently more resistant to tradtional hacks, takedowns and DDOS attacks.

  • Integration of the currency into the platform means that the value of the PART token will increase rapidly as use of the marketplace increases.

  • This is because although Particl can accept multiple cryptocurrencies, these will all be converted in the Particl client into PART token via integration of shapeshift exchange and other decentralized exchanges into the Particl client before being used to transact on the Particl network.

  • Thus there is a constant buy pressure on the PART token to raise its daily trading volume, attract speculators who will then promote the platform further (after learning about it) and thus speading the network effect and awareness about the marketplace.

  • Integration of the currency into the platform also makes it easier to use as it reduces the number of additional trusted third party services required to zero, thus the service is more accessible, secure, safer and convenient.

  • XMR and DNM's are currently the way with regards to anonymous, private commerce but the Particl network provides all their services integrated and avoids all their inherent problems.

  • A design which encourages convenience (integration of the currency exchange/converter, marketplace listings, escrow service, currency, communications, security features and any additional services required under one client operating on a separate chain).

Compare with centralized marketplace's which have a number of distinct disadvantages:

  • Have far higher fees

  • Are governed by centralized authorities which can delist or prevent you from listing products for any reason whatsoever without any recourse; this also prevents buyers from being able to purchase things they want

  • Contain your sensitive data (credit card information, purchase/sell history, personal information) on centralized servers which means your information can be sold to third-parties, governments or leaked during hacks (Equifax anyone?)

  • Have zero network effects -- unless you own stock in you couldn't give two shits about how it operates


In contrast decentralized privacy centric MP's do not require personal information, can benefit from leveraging the network effects of speculation (Bitcoin circa 2013 is a perfect example), can have low or zero transaction fee's and protect sellers from premature, unfair or even illegal delisting i.e. protect buyers and sellers from censorship where none is required or where censorship is questionable.


  • Furthermore the tax implications of cryptocurrency have yet to be determined. PART wouldn't qualify as just a currency as it has features that make it more in keeping with a bond and a share simultaneously (as the token confers governance rights, generates passive income if staked and is used to secure the network + act as bond in it's escrow service). Tax laws specific to an asset class like PART have yet to be clearly defined. I think a large amount of legal white market commerce could run through Particl simply because it potentially represents a more legally tax efficient solution.

  • Following on from this I think a large amount of wealth that has moved into cryptocurrency wants to stay there. Thus the general market for legal goods acquired tax efficiently through multiple cryptocurrencies is potentially untapped and could explode as crypto marketcap continues to grow. I think this represents a case for all decentralised marketplaces.


This argument in general is the case for decentralization of marketplace technologies and is the main use case for District0x, Openbazaar, Syscoin etc.

By: Joske

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