For so many people crypto and blockchain seems to be some ethereal technology, with limited real-world applications. A space where geeks hang out, buying overpriced JPEGs and getting overly excited about the largely unproven system of decentralisation.
I think this is a shame. Understand the first principles of any idea, area of life, whether that’s your health or a new technology, is pretty important to getting effective results.
In this article
, I break down some of what I believe to be the first principles of crypto, from decentralised ownership to the creation of good incentives.
Crypto completely flips this model of ownership on its head. Tokenisation means that incentives can be drawn up which gives early users of the product tokens for their participation. This means that as a customer, you can gain ownership of the project, simply for participating. An example of this is the BRAVE browser, which rewards customers with $BAT, the BRAVE token, for each ad they are exposed to.
It’s not hard to imagine a decentralised version of Uber in the future, in which every driver has a choice between collecting dollars or the equivalent $ amount for the work they do in tokens of the project. Likewise, customers could pay in these native tokens, creating an ecosystem where the currency of the service is also ownership of the company. As the popularity of the startup increases, the utility and TVL (total value locked — basically investors holding) of the token would drive the price higher, but service rates would be set at the rates of a stablecoin ensuring stability. A ride that used to cost 5000 tokens, would now only cost 100 tokens.