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> Alternatively, the distribution of value in the blockchain paradigm can be described with fat protocols and a thin application layer. This paradigm shift is p
by natural219 9y ago
> Alternatively, the distribution of value in the blockchain paradigm can be described with fat protocols and a thin application layer. This paradigm shift is possible due to the innovation of cryptographic tokens.
As a long-time decentralization activist, this sentiment makes me want to tear my eyeballs out. Why are cryptographic tokens necessary to implement fat protocols? Why does "standardizing communication across applications" now also have to mean "implementing a global, secure financial market" in the process?!? This is maddening to me and nobody has explained to me why blockchains are a requirement to do this.
- CryptoPunk 9y agoIt explains in the two subsequent paragraphs: >>“Historically the only way to make money from a protocol was to create software that implemented it and then try to sell this software (or more recently to host it)… With [cryptographic] tokens, however, the creators of a protocol can ‘monetize’ it directly and will in fact benefit more as others build businesses on top of that protocol.” >>Previously, the creators of open communication protocols for the Internet, largely DARPA researchers and non-profit contributors, could not align financial incentives with protocol development. In contrast, protocol creators today can issue “tokens”, like Bitcoin and Ethereum, that represent the value of their decentralized protocols. The key is that it can "align financial incentives with protocol development".