As the new generation of cryptocurrencies is beginning to show its face, another digital coin accelerator rose up to attend the next level of natural Bitcoin evolution.
Second Generation Cryptocurrencies
Generally speaking, second gen is expanding the functionality of digital coins beyond being a token of exchange or having speculative value. At least, this vague description of what this next gen is given to be the founder of the Bitcoin Alliance of Canada, Anthony Di Iorio. However, thing are a little more complicated.
For example, let’s take MasterCoin’s layered structure. MTC are using Bitcoin as a framework upon which they base their own system. Therefore, these are tied to Bitcoin, but the main idea is that MasterCoin is used to provide platform for the next cryptocurrencies.
Ideally, it should work like this. Someone opens a business, creates his own digital coins to manage this business. After a person who wants to work with this new currency uses MTC to buy it. At the same time, this customer may have had his own cryptocurrency for his own business but while it’s based on MTC he can exchange it at any time.
So, it’s a pyramid of digital currencies, where Bitcoin is at the top, MasterCoin acts as a middleman in the center and a legion of different currencies is the lowest layer.
The accelerator will start at $250,000 as a beginning fun but its owners anticipate another $1,5 million of investment to stay afloat for the first eight months.
The BDC is divided into three separate cohorts, each running for about three months and each having its nine companies. First shot will arrive at Bitcoin expo 11th-13th April.
The accelerator will not only support new currencies but also entrepreneurs who has interested in making Bitcoin-related business. To be accepted into the project, one has to possess a prototype, a reserved market niche or test base results proven positive. Another important requirement is a team, that’s has showed the effectiveness of working together.
Only 7% of equity of participating enterprises is reserved for the accelerator. The money can be acquired either in digital coins or in fiat. After the venture graduates they get an additional investment to push on.
Mentors and Experts
The companies that will make it into a cohort are chosen by the three founders and the potential mentors for the participating teams. Full list can be found here.
Most of the faces are respected members of cryptocommunity that not once were involved with Bitcoin in some way. Speaking of DI Iorio, he is actually associated with the team working on Ethereum another next gen cryptocurency with unique features.