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Yes, let's make all our technologies as "fat" as possible so other people can't "capture" and "re-aggregate" our "value". The VC-oriented approach to protocol
by panic 10y ago
Yes, let's make all our technologies as "fat" as possible so other people can't "capture" and "re-aggregate" our "value". The VC-oriented approach to protocol design!
What’s significant about this dynamic is the effect it has on how value is distributed along the stack: 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.
That also goes the other way: failure at the application level can bring the token value down as speculators sell, and a lowering token value affects all applications.
- wmf 10y agofailure at the application level can bring the token value down Nah, the protocol will just hard fork to bail out the application.
- jmonegro 10y ago100% on it also going the other way, as we've seen repeatedly whenever there is a hack at the application layer. The market cap of the protocol drops at a higher rate than the "actual loss", e.g. last week's Bitfinex hack of $70mm in BTC knocked 20% off the price of bitcoin.
- kordless 10y ago> since the success of the application layer drives further speculation Define "success" and you describe the use case for a blockchain. I need a record of performance, plus efficient algorithms to summarize those records later after the trust cost of storing that data drops.