Most investors are familiar with the business model of the entrenched platform economy, in which a set of powerful tech companies rely on the network effects that they generate to obtain proprietary data, goods or content from users. These tech giants dictate terms favorable to their own businesses yet often limiting for users’ interests.
The protocol economy of Ethereum currently has over 115 million token holders, which has grown at double-digit annual rates over the past four years. Monthly active users grew 25% year-over-year last month and now. If users on Ethereum layer 2s are included, that user base is over 10 million. Total value locked, the amount of capital stored in Ethereum’s DeFi smart contracts, rose to greater than $50 billion.
So how does one get exposure to this breakthrough technology asset and, just as importantly, the $740 billion value built on top of the chain? Assuming a protocol’s tokenomic design has a value accrual mechanism that allows the value of the network to be captured, then there’s a case to be made for holding the token. When any kind of economic activity happens anywhere in the Ethereum ecosystem, fees are generated.
Other significant sectors gaining momentum include decentralized social networks, where users can exert greater influence than conventional models, and gaming, which can significantly expand its design possibilities by incorporating crypto elements. Additionally, artificial intelligence may soon necessitate the secure and verifiable logging of human-generated content within a transparent and immutable ledger, a function uniquely suited to blockchain technology.
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Source: CoinDesk - 🏆 291. / 63 Read more »
Source: CoinDesk - 🏆 291. / 63 Read more »