Composability ✨🦄✨
Ethereum Killer Feature
Ethereum is a Positive Sum Game 🧙♂️🧙
In economics and game theory, A zero-sum game is a term used to describe a situation where the gains of players come from the loss of other players. To put it simply, if someone wins other loss. By contrast, in a non-zero game, all players might win (positive-sum game), aggregating more value, or all players might lose (negative-sum game) destroying value. The gains and losses don’t need to be allocated equally.
What does this mean? all actions (Contracts, DApps, Projects) affect in a way Ethereum network for good or for bad (The DAO hack or Crypto Kitties slowing the network). In this article, I will focus on the good side and explain how a positive-sum game allows the creation of things that before were not possible.
Permissionless Contributions 📢
Public blockchains are permissionless by default, it means any smart contract build on the network is accessible to other developers, projects even smart contracts. You don’t need permission from Crypto Kitties to create a new currency based on kitties (Wrapped Kitties).
Some notable examples are Dharma, who launches a new version using its previous competition Compound as the base.
And Ethereum Name Service launching a short name auction on OpenSea
Internet Magical Money Blocks 🏗️
As if ✨Internet Magical Money✨ wasn’t enough Ethereum smart contract works like 🧱 Magical Lego Blocks 🧱.
Developers don’t need to reinvent the wheel, all the contrary they can build on top of many amazing projects the work of others to make their projects a success. One of my favorites stacks of blocks is the DAI stack.
Each token allows the creation of the next one, demonstrating the potential of building blocks.
ETH: Ethereum native currency.
WETH: ETH turned in an ERC-20 Token.
MKR: Used to govern the protocol that creates DAI.
DAI: Collateral based stable coin. It works like a mortgage with your ETH
cDAI: Token that gets interests by lending DAI.
rDAI: Gives your interests to someone else.
LSDAI: Stable interests.
You need to be careful, it also works like a Jenga tower, if the base falls everything else does.
Standards 🏴☠️🏴☠️🏴☠️
Composability wouldn’t be possible if there weren’t standards. Ethereum Improvement Proposals (EIPs) describe standards for the Ethereum platform, including core protocol specifications, client APIs, and contract standards.
For developers, this is crucial, as they need to have a notion of how things work to use it, the most popular EIPs are the ERC-20 and ERC-721, that describe how to properly create a fungible and non-fungible token.
Developers can take the standard and use it to create wallets or DApps. 0x uses these standards to create a protocol that allows other developers to build decentralized exchanges with ease.
In the end, Composability is the result of two things, collaboration, and community both of these are the true Ethereum Killer Features. ✨🦄✨
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Disclaimer: The views expressed by the author above do not necessarily represent the views of the Ethereum Foundation.
