Summary of “Fat Protocols”

Protocol vs Application Value Capture

How value is captured for the Internet

How value is captured for the Blockchain

Why the difference?

The shared data layer

Ownership of the protocol layer

  1. New protocols draw the attention of early speculators, developers, and entrepreneurs who buy in and become initial stakeholders in the protocol.
  2. Then some of these early adopters who are invested in the financial success of the protocol, build products and services on the protocol and market the protocol in hopes to further its value.
  3. Some of the applications become successful and the marketing generates further interest in the protocol, attracting new users and more mature investors.
  4. This further increases the value of the tokens, which draws more attention from more entrepreneurs, leads to more applications, and so on.




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ordinary crypto guy

investor, notetaker, data monkey

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