Mike great write up. Now I have to source to cite for ADE.

Why Decentralized Platforms Will Eat Centralized Platforms

Platform (Network Market) World

Blockchain technology has the potential to truly revolutionize network computing and associated markets such as finance, supply chain, social etc. One of its main attractions has been its promise of bringing more virtuous and trustworthy governance as a result of more decentralized control of the underlying systems. Decentralized control has the potential to cause a leveling effect that more fairly distributes value to users, limits exploitation, removes barriers to entry, and increases opportunities for disruptive innovation and value creation. But like any new technology that portends to provide such a leveling effect, blockchain has so far failed to live up…

Although the crypto-winter is upon us, with waning interest in building businesses using blockchain technology especially compared to its peak in early 2018, there is still significant value to be captured in the crypto space. If anything there may be greater opportunities in the aftermath of the crypto-bubble. Not the least are lessons learned of how not to do things. One of the lessons learned is that naive single tokenomics may not work so well. I addressed the problems of using a single token for both an appreciating store-of-value and a low friction medium-of-exchange in prior posts (see Part 1

Using a Fiat Payment Channel for Low Friction Online Transactions

This blog post is the second in a multi-part series on fixing utility tokenomics. Part one is here. For a more in depth exposition see the Difuon tokenomics white paper here.

Separation of Concerns

In Part 1, I explained how a single utility token could NOT be both a good medium-of-exchange and a good store-of-value (at least an appreciating one). The seemingly obvious solution is to separate these concerns into two different tokens; the first, a medium-of-exchange (MoE) token, and the second, a store-of-value (SoV) token. This means that a participant no longer must purchase SoV tokens in order to…

Advantages Of Using Both Crypto and Fiat Tokens

This is Part 1 in a series (see Part 2 here).

Nearly 2000 startups in 2017 and 2018 have raised over 13 billion dollars using initial coin offerings (ICOs), selling crypto-tokens. A significant number of these raises sold what are most commonly called utility tokens (also known as usage or network-medium-of-exchange tokens). They are called utility tokens because the token derives its value from its utility in the functioning of the associated network or platform. Usually the main functions are to act as a medium-of-exchange for transactions on the network and to incentivize participation in support of the platform.


Samuel M. Smith

Samuel M. Smith Ph.D. Is a pioneering technologist in multiple fields including automated reasoning, distributed systems, autonomous vehicles, and blockchain.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store