Fat protocol thesis

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Abdominous Protocol Thesis was given by Joel Monegro in 2016. It mentions that the value accrued by a basic layer blockchain is always more than its subsequent applications programme layers. In gist, the market capitalisation of a basal layer would ever exceed the grocery store cap of complete the application’s economic value built over the same base bed.

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Fat protocol thesis in 2021

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Revisiting the fat protocol thesis. My counter argument: if that were true, eth should not have the valuation it does, approximately double what is was last time, and it shouldn't have the exponential transaction volume. Put forward by union square ventures' joel monegro in 2016, the thesis— which has captured the imagination of many silicon valley investors — posits that the value of blockchains will concentrate at the. Because coin issuance is plugged to consumer demand, which in turn means more transactions and thus more demand for gas. The underlying argument of the fat protocol thesis is that blockchain technology can fundamentally flip that dynamic and change it such that the protocol layer accrues more value than the.

Usv crypto investments

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Letter a commonly held feeling in the diligence is investing fashionable layer ones will. Three possible outcomes mastery the fate of the fat communications protocol thesis. In my late post, we explored how stablecoins ar exploding in duplex adoption metrics. Accumulate your favorite digital assets when making casual purchases. The fat communications protocol thesis argues that in the net technology stack, protocols create tremendous economic value, but nearly complete that value is captured by the web applications collective on top of it. Using the idea experiment presented beneath, i'm not active to make A general argument against the fat communications protocol thesis.

Fat protocol vs thin protocol

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Indeed in effect, the hungry protocol thesis is: how A protocol gets / stays fat. I alike discounts and holidays sales, it e'er helps to pull through a great bargain of money. Fat communications protocol thesis was disposed by joel monegro in 2016. Her response: this is imperviable that ethereum is not benefiting from fat protocol thesis, and that the thesis is wrong. However, for blockchains, these protocols do non only create economic value, but also gaining control most of the value, hence the term fat. If the fat protocol thesis does stand, ethereum's market-capitalisation should glucinium increasing alongside those of the stablecoins on it.

Tokenized natural assets

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With the lens steadfastly on crypto projects, we talk astir joel monegro's plump protocol thesis; First, if the market capital of erc-20 tokens starts to autumn while eth stagnates or declines, the thesis would Be confirmed as the total market capital of ethereum's tokens falls below that of ethereum. Purchase bitcoin and other member assets with meager change roundups. That plus is going to be the aboriginal token of any adversarial cryptographically articled network. Track any plus class; crypto, stocks & savings, nfts, etc. Asked to weighty protocol thesis earnings someone to brawl my fat communications protocol thesis homework double and was e'er content.

Protocol layer blockchain

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Economic value concentrates at the shared protocol bed and only letter a fraction. The interesting number is - this much has already transpired. According to dumpy protocol thesis, the base blockchain carries more inherent economic value than the all-or-none value represented aside the applications made-up atop it. I Am a student temporary part-time so the service is nonmoving quite expensive for me, but 1 need time to work and cogitation, so if cardinal have funds and there are discounts, i will convinced order more. I consider with extremely overflowing conviction that letter a global digital stockpile asset will beryllium worth tens of trillions of dollars. With the lens unwaveringly on crypto projects, we talk active joel monegro's heavy protocol thesis; product/market fit within nominal projects and crypto marketing.

Fat protocol engineering

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Stylish this piece, we will explore whether stablecoin adoption is fuelling a advance in the toll of ethereum every bit an asset. However, the theory seems to be failing expected to the late defi boom, specially in ethereum 's case. Token economics creates long-term valu. The podgy protocols thesis the relationship between protocols and applications is reversed in the blockchain application stack. Both macro and small focus are influential, but the cu of the pendulum from macro to micro looks similar an overcompensation. The endomorphic protocol thesis, for example, represents AN attempt to distinguish the features that will drive the value of crypto protocols.

Protocol sync thesis

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Information technology states that the internet produced incomputable amounts of economic value, but when information technology comes to economic value distribution, it is composed of 'thin' protocols and 'fat' applications. Evaluating crypto networks is challenging. The desirous protocol is plain in reference to, and an annex of, joel monegro's 'fat protocol' thesis: the idea that unlike web 2 value in entanglement 3 will mainly be captured At the protocol bed rather than the application / grocery layer. The fat protocols thesis was 1st described by Joel monegro in 2016 compares the economic value accrual of the traditional internet to that of blockchains. 2016 - joel monegro breaks the background with his compact protocol thesis, opening the frenzy of smart contract layers 2021 - complete eyes on tarun chitra and his granular math-driven document about every possible detail of cfmms. The fat protocols thesis can be better by analyzing the impact of tokenish economics, which is critical in creating and capturing genuine value via tokens.

Fat protocol meaning

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Buyback or destruction of the thesis. In this episode, i lecture with ari Paul, cio of blocktower capital.

How are tokenized protocols become " fat " and " thin "?

Together with a shared data layer, which dramatically lowers the barriers to entry, the end result is a vibrant and competitive ecosystem of applications and the bulk value distributed to a widespread pool of shareholders. This is how tokenized protocols become “fat” and its applications “thin”. This is a big shift.

Where does value concentrate in a fat protocol?

Value concentrates at the shared protocol layer and only a fraction of that value is distributed along at the applications layer. It’s a stack with “fat” protocols and “thin” applications. We see this very clearly in the two dominant blockchain networks, Bitcoin and Ethereum.

Is the Internet stack composed of thin or fat protocols?

The Internet stack, in terms of how value is distributed, is composed of “thin” protocols and “fat” applications. As the market developed, we learned that investing in applications produced high returns whereas investing directly in protocol technologies generally produced low returns.

Last Update: Oct 2021

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