Proof Of Usability
It’s a bubble, that’s for sure. We are not talking about Bitcoin though, we’re talking about the altcoin market. Projects, which have (close to) zero adoption get evaluated by the traders for billions of dollars.
They produce nothing. They contribute with nothing. The whole market is a mere gamble, where people with lots of money and patience try to lure the ones who are attracted by the promises of quick riches. It’s a pyramid scheme on top of a pyramid scheme and it’s ugly.
But used to be beautiful — first there were the believers. Those who didn’t care if a pizza would cost them 20$ today, but hundreds of millions of dollars in the future. These early adopters were fascinated by the core values of the blockchain technology — the censorship resistance, the decentralization, the control of your own data. It wasn’t about becoming an overnight sensation, about betting on projects without even knowing what they are all about, about pushing forward those with the greater marketing budget, not the greater potential.
And all of this leads to an even graver problem, which is the notion of ‘hodling’. Instead of exploring this new technology, people only purchase the tokens that unlock it, but never really take advantage of it. They hope that others will find value in it so that they themselves can wake up wealthy one day. Mercantilism has taken over the crypto-space.
It was beautiful — and it still could be.
We, at Otcrit, still see the great impact that ICOs can have on the small-to-medium businesses, that blockchain can have on security and freedom and that tokenization can have on our perception of goods.
We are currently developing the implementation Proof of Usability concept when it comes to evaluating crypto-projects. The team analysis, the Whitepaper analysis, the competition analysis are not to be neglected, but if a product or a service are too hard to be understood or handled by everyone, then they have no future. It’s as simple as that. The Proof of Usability’s main focus is figuring out whether an actual adoption by the everyday normal user is possible. Instead of targeting those that are well-aware of the way that the distributed ledger technologies function, those that run nodes or are in generally tech-savvy, we need to figure out whether a product or a service can be used by the masses. Just because you have created a product on the blockchain, which challenges LinkedIn, AirBnB or Cisco, it doesn’t mean that it can actually take any of their market share. Entrepreneurs love to point out figures, such as that they are targeting a trillion dollar market and that seizing just 1% of it would be equal to 10 billion dollars.
Guess what? Even this 1% is most often than not completely unachievable.
Part of the issue is that because of the speculative value of the tokens (both utility and security ones), no one really is thinking about putting them into use. So, we need to look into those products and services, without which our lives in the future will be unimaginable — an integral part of them, like the Internet. Almost no one was using the Internet 25 years ago and today spending a day without it is seen as a challenge.
So, first we need to define the issues, those that need to eliminated by the blockchain (or the DAG). The more urgent it is, the better chance its solving has to bring prosperity to both the creators and the investors.
Second, they need to be tested by the users themselves. Even if a concept is groundbreaking, if it takes to have an IQ above 150 to figure it out, it’s not going to get embraced. The test audiences need to be of all ages, backgrounds, ethnicities, sexes, etc. In the future we will try to gather these testers through our platform and they will be sharing their earnest opinion when it comes utilizing an asset. Did it take them a lot of effort to enjoy the VPN services that it provides or are they satisfied with the possibility to earn digital currency through a social media? Everything will lead to ratings which will crucial when deciding whether a venture has future or not. We, ourselves, will be stimulating them to participate by paying them in OTC.
Third, its business model needs to be examined. Does it take to send fiat to an exchange in order to buy Bitcoin, which then needs to be transferred to a second exchange, where the asset is in fact being traded, followed by actually using it? If the answer is ‘yes’, then good luck with competing with the above-mentioned mega-companies. Or are the token owners really incentivized to spend their holdings — for the purpose of their existence? If the answer is ‘no’, then that leaves 99.9% of the projects out of the question. That also reinforces the argument that we are in a terrifying bubble.
Once the exact working mechanism of this concept has been established, Otcrit Platform will begin highlighting those projects that pass the Proof of Usability. We have in our roadmap our own exchange that will be listing only those assets, backed by actual value and that are indeed employable. Users who purchase them will be redirected to the businesses that accept them and they will be encouraged to truly spend them. We will also be working towards the facilitation of the use of crypto, so that it doesn’t take too much effort to obtain a coin and then use it. Our whole focus will be on the ‘Proof of Usability’. If it’s useless, then the definition speaks of itself.
There is light in the tunnel. Just like the burst of the dot.com bubble did not wipe out all the Internet websites, neither will the spectacular crypto-crash. It will be a much-needed purification.
The Otcrit Team
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