Token Economy 101, or why Blockchain-powered decentralized networks are important

I. Blockchains unlock the creation of quasi-perfectly decentralized networks

Different entities in charge of a Network functions

II. Dapps and their Tokens create a new economic paradigm

[Note: The allocation of collected funds is ultimately decided by a few individuals. It is consequently not possible to speak of perfect decentralization, even if, as Tokens bearers, their interests are perfectly aligned with those of the other Tokens bearers. That’s why we refer to it as quasi-perfect Decentralization.]

Typical Dapp ICO
ICO fundraising ($m) $288m LTM
Recent ICOs on « Smith & Crown » website (which ambitions to become the reference in terms of ICO rating agency)
Tokens stock price of major Dapps (coinmarketcap.com, May, 18th 2017)
Growth of the market capitalization and the volume of Tokens transactions on the market (incl. Bitcoin) since 2013 (coinmarketcap.com)

The 2013 increase was largely due to Bitcoin, but that of 2017 is mainly driven by the Ethereum ecosystem.

Market movements are very violent, especially in recent days (x3 in less than a month!), and a strong correction is of course very possible.

However, this is no different from the dynamics that can be observed in traditional markets, and says nothing on the underlying’s quality (see explosion of the Internet bubble during the 2000s).

III. The ecosystem is growing fast and increasingly connected with traditional investors, regulators and mainstream media

CONCLUSION

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