Why Should You Invest In Blockchains

Investing in startups pre-market-fit is a risky business. You simply don’t know if there is a customer with a problem you can effectively solve. Or if the opportunity you present is enough of a priority for them to invest time and money in something new. But I think Dave McClure’s investment thesis in his article just summarised it all:

Invest BEFORE product/market fit, measure/test to see if the team is finding it, and if so, then exercise your pro-rata follow-on investment opportunity AFTER they have achieved product/market fit. It’s sort of like counting cards at the blackjack table while betting low, then when you’re more than halfway thru the deck and you see it’s loaded with face cards & tens, then you start increasing your betting & doubling-down.

I believe blockchain technologies are something we should keep an eye on in South East Asia, especially in the transactional and business function app layer. Blockchain technologies will enable a distributed and automated web infrastructure that brings with it previously impossible economic models. At their core they represent a fundamental shift from centralized & human mediated systems to “trustless” decentralized and autonomous networks.

They enable a truer peer-to-peer environment where not only individuals but also autonomous machines and agents, such as Decentralized Autonomous Organization, can transact as well as share information and resources securely without the need for a broker of trust. This will see large parts of our economies automated, removing many market intermediaries and improving efficiencies and liquidity. More specifically, it provides an infrastructure for other emerging technologies such as artificial intelligence (AI), The Internet of Things (IoT), Autonomous Robotics (Drones & Autonomous Vehicles), Virtual Reality (VR) and Augmented Reality (AR), and 3D Printing.

It is the ability of blockchains and other distributed technologies to enable automated and intelligent M2M (machine-to-machine) networks that could transform design & manufacturing, distribution & logistics as well as retail & commerce. This will impact almost every supply chain from health to construction and manufacturing. Once you can ensure the integrity and provenance of digital assets, in some cases tie them to physical assets and allow them to be traded, either sold or leased, without people I believe we will see an exponential explosion of innovation that will bring greater liquidity and efficiency to global markets and cross-border trade.

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