added by sari and · updated 1y ago
Fat Protocols | Union Square Ventures
- by replicating and storing user data across an open and decentralized network rather than individual applications controlling access to disparate silos of information, we reduce the barriers to entry for new players and create a more vibrant and competitive ecosystem of products and services on top.
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago
- Here’s one way to think about the differences between the Internet and the Blockchain. The previous generation of shared protocols (TCP/IP, HTTP, SMTP, etc.) produced immeasurable amounts of value, but most of it got captured and re-aggregated on top at the applications layer, largely in the form of data (think Google, Facebook and so on). The Inte... See more
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago
- There are two things I want to point out about this feedback loop. First is how much of the initial growth is driven by speculation. Because most tokens are programmed to be scarce, as interest in the protocol grows so does the price per token and thus the market cap of the network. Sometimes interest grows a lot faster than the supply of tokens an... See more
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago
- This relationship between protocols and applications is reversed in the blockchain application stack. Value concentrates at the shared protocol layer and only a fraction of that value is distributed along at the applications layer. It’s a stack with “fat” protocols and “thin” applications.
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago
- When a token appreciates in value, it draws the attention of early speculators, developers and entrepreneurs. They become stakeholders in the protocol itself and are financially invested in its success. Then some of these early adopters, perhaps financed in part by the profits of getting in at the start, build products and services around the proto... See more
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago
- the market cap of the protocol always grows faster than the combined value of the applications built on top, since the success of the application layer drives further speculation at the protocol layer. And again, increasing value at the protocol layer attracts and incentivises competition at the application layer. Together with a shared data layer,... See more
from Fat Protocols | Union Square Ventures by Albert Wenger
sari added 3y ago