What most fail to realise is that killer DApps are destined to own 70% of their market. Here’s why …
Prior to blockchain, our reality has been the corporation. Take Facebook. It played a blinder enrolling businesses to create “pages” which yielded significant benefits … at first. But then the rules changed and business’ returns in building these communities were denuded.
Competition drives this “corporation must win at all cost” behaviour. But what about a world where the whole idea of competition simply looses ground. “Ah, a monopoly”, you say! Again, thinking through a pre-blockchain lens. Wrong.
DApps can distribute much or even all of the value they produce to their community.
Let’s stick with Facebook. The reason they hiked the cost for companies to reach their own communities through paid posts was that they could. Furthermore, they were obliged to do so by their for-profit mandate. It would be great if such a corporation would just be nice and continued to allow companies to reach their communities cheaply. But that is simply not the name of the game.
In exactly the same scenario – where a platform provides a valuable service to its users – a DApp can put value into the hands of it’s community with its crypto-token. By not squeezing the users through any and every leverage it has, DApp’s can enrich their users because the value of their tokens is defended by the certainty that this value will continue to accrue to them. In other words, the rules won’t change.
The concept of “competition” referenced above applies in a world where the typical values conveyed on users are function and price. Churn results as users hop from this solution to the next to get better value. But if a platform exists on a blockchain, and users hold that platform’s utility token (in order to use the platform as opposed to just for investment) then another dimension is introduced. Now the token’s potential to hold and or accrue value is a factor for that user.
Let’s assume that this platform does exactly what this user wants. More than this, let’s assume that the more users there are, the better this platform delivers what this user wants. When you add to this assumption certainty that the value accruing from that platform’s growth cannot be captured by anyone or anything other than the holders of the token, then you have the reason why “A killer DApp is destined to own 70% of the market.”
Check out https://presale.market. It is a killer DApp.
By Frazer Brown, Founder and Chairman at Act Foundation
Hear more from Fraser at Blockchain Expo North America 2018