1/ Contrarian opinion: For utility tokens most of the value will be in the application layer, not in the protocol layer. Let’s take Ethereum as an example:pic.twitter.com/p34RFIbwzp
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Not arguing against that here. Only stating that between SC platforms and the associated dApps, cumulative value of dApps will exceed value of platform. SoV/money is another story and definitely the bigger use case.
Exactly. Thanks, Phil.
Even so, two big assumptions are made: 1) that dApps will be closed-source instead of open-source and thus unforkable. & 2) that there will be significant rent-seeking that can accrue value for dApp founders/investors.
The promise of the blockchain is a world without middlemen. I think the rent-seeking will be minimal, on the order of 1%, if at all.
(1) Yes, I think the application software be very specific & mostly closed-sourced and (2) I wouldn’t call it rent-seeking. It provides value by making tedious processes more efficient (eg notary services above). About middlemen: It’s ‘and’, not ‘or’, imo.
A proliferation of entirely Closed-source services may or may not be palatable to users in the era of the blockchain, tbd.
That’s what I think will happen, based on the incentives for one versus the other. Not necessarily what I hope for. Btw, the open-source vs closed-source isn’t the biggest factor, I think. It’s switching costs.
Do you think switching costs from one prediction market dApp to another prediction market dApp would really be such a big deal? Especially if, e.g. if one charges 2% and another charges 1%? or one is closed-source vs. another is open-source? Cryptocommunity places premium latter
Why wouldn't a de-facto SoV/Money be useful for something else?
I visualize Web 1.0, 2.0 traversing to 3.0 like this: fat app layer, thin protocol are massive SUV’s crowded on an old crumbled 2 way road; fat protocol/thin app as Smart cars on 8 lane highways. Maybe I’m wrong.
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