6. Crypto Today: Lots of Studebakers, No Ford
The two offers above are not mutually exclusive. It’s nice when one sector complements the other, and drivers have abundant choice. Competition breeds innovation, and so forth.
Furthermore, we understand pushback from many crypto “collectors” who claim to be “investing” in, and “collecting/HODL-ing,” coins that they think represent a diverse portfolio of Studebakers and Fords, among others.
But in our view, today’s crypto has a lot of Studebakers and not a single Ford.
If you disagree, if you think crypto has its Ford, tell us what that Ford is in a response below.
- We want you to be right; we want to be pleasantly surprised; and we always want to learn about new CryptoFord candidates.
- But if your CryptoFord (whether it’s Ethereum or Trinity or Truth or X, Y, Z) doesn’t do the three-step dance above — (1) keys; (2) quick how-to earn crypto; (3) earn crypto — you’re probably wrong.
The closest Ford candidate is the relative ease of creating one’s own token in Ethereum. But even that doesn’t satisfy criteria #2 and #3, above.
7. Crypto’s a Plush & Complex Studebaker
Crypto can continue doing what it’s doing and maintain its “healthy growth,” just like Twitter maintains a “healthy network” by not rushing to fix what it thinks “ain’t broken.”
Indeed, the market for custom coach-builders and expert mechanics survived the Great Depression, World War I & II, and, most recently, the Great Recession. These service providers continue to do well today.
But, be honest, when’s the last time you’ve seen a Studebaker on the road?
Alternatively, crypto can realize that, despite its exponential adoption curves, global adoption can and should be much faster.
8. Crypto Needs to Identify its Real Competitors
Most crypto analysts will concede that a big obstacle to much faster adoption is the lack of a shared interoperability vision, let alone anything resembling comprehensive inter-crypto interoperability standards.
There are many technical reasons why crypto lacks interoperability protocols. But there are also human and institutional barriers to cooperation. Crypto is a very competitive space. Everyone wants to exploit what they think is their first-mover advantage.
Today’s inter-crypto gamesmanship is like watching a group of friends facing off in a fierce game of Grand Theft Auto.
Before the game even starts, everyone thinks they will win because they have full control over their Cryptomobile. They can select different skins, like this Army Camo Pack, to make one’s Lamborghini Aventador a lot more “stealthy.”
Because you can make virtually infinite numbers of mods to your rig, weapons, and scripts, it’s easy to start believing that you have written the rules that govern your race platform.
At the end of the day, you may have won some battles against your friends. But the people winning the war are the publishers of Grand Theft Auto.
The key lesson from this exercise is that Crypto’s biggest competitors are not fellow crypto teams; it’s not even FAMGA.
Crypto’s biggest competitors are legal institutions. Crypto’s inability to see this represents one of crypto’s biggest missed opportunities to date.
7. Crypto Needs to Raise Shared Expectations
In addition to competing against one another, crypto developers should realize they are also competing against much more powerful forces than just another crew of cypherpunks.
See the planes on the runway right behind those cars?
When it comes to speed in getting people or things from point A to point B, the people who build and pilot those planes look at #27 and think, “awwwww, how cute.”
The inter-crypto race for primacy is only normal, but crypto adoption-drivers shouldn’t just look above steering wheels and “under the hood” to figure out how to go much faster.
Very often, the breakthroughs that give orders of magnitude higher performance are whizzing about on totally different runways.
The only way to see them is by suspending assumptions and broadening your field of view.
8. Crypto Should Use Different Benchmarks
For example, instead of competing against one another in some absolute sense, by reference to quantitative benchmarks (ex: transactions per second), crypto racers may benefit from looking far beyond usual comparable variables (“crypto transactions per second” v. “Visa transactions per second”).
Instead of trying to squeeze as much transactional horsepower out of one second as possible, crypto developers may be better served by rethinking the essence and structure of a transaction altogether.
Here’s an example of a new quantitative performance benchmark for crypto. There are many more benchmarks like this.
9. Crypto Must Understand The Needs of Crypto “Consumers”
Today’s big crypto projects are like B2B operating systems: they serve as platforms upon which other second-tier, third-tier consumer-oriented applications will be developed.
Bitcoin is the “Unix of money.” Ethereum is the “Linux of crypto.” IOTA is the “
FreeBSD of the machine economy.” And so on.
This approach gives development teams much needed respite from torrents of individual consumer demands for greater transaction speeds, overall utility, more security, etc.
But this approach also has the disadvantage of creating a buffer between the developers of crypto operating systems and the end-users of those operating systems.
Crypto should stop getting high on its own supply; instead, crypto needs to understand what non-crypto people need from crypto.
Today’s biggest need area are easy-to-use applications that plug normal people into the crypto economy. All crypto developers benefit from successful end-user applications like this. All crypto development teams have a shared responsibility for incubating end-user applications like this.
10. Crypto Platform Shopping is Real
The way CleanApp fell into crypto is similar to the way many people learned about crypto.
In 2015, we started doing legal mechanics for several crypto projects, and started educating ourselves on the rapidly growing range of crypto projects, platforms, and possibilities.
When we started seeing more and more bells and whistles, and so much chrome, and so many Lambos and Maybachs outside, we began to wonder — Could blockchain be the key for a hyperutility CleanApp?
Vice versa, was CleanApp the “missing killer app” that crypto was desperately searching for?
Predictably, our answer to both questions was “Yes” — a global waste, hazard, incident reporting process would be baller as a set of on-chain markets that are integrated with real off-chain response processes. It yields noticeable material improvement, everyone’s better off, etc. etc. etc.
But that’s just context. We’re not plugging anything. This isn’t a sales pitch. It’s analysis. This part of the story is just better told by sharing our own experiences with crypto platform shopping.
11. Crypto “Features” Must Come Standard
One of the things we noticed early on in our research was that all end-user oriented crypto platforms lacked a basic feature — the ability to easily earn crypto by doing socially-useful work.
To us, the need for this “feature” is as obvious as the need for a seat belt in a car.
As a form of micro-finance, crypto is an ideal vehicle for incentivizing the production of socially-useful material service (like street sweeping, litter cleanup, common-area maintenance, etc.), tracking the inputs, aligning potential transactional actors, and reaping the value of global I/O analytics on these underlying processes.
Despite the obvious value and utility of an app like that, there wasn’t and isn’t a crypto platform that makes development of globally-scalable apps like this easy.
Ethereum comes close, but, among other problems, Ethereum’s transaction volume/bandwidth limitations mean that near-real-time rewards corresponding to real-time inputs would be all but impossible at billion-user scales (billions of daily transactions). IOTA seems like a possible fit, and we’re amidst that learning curve at present.
So, upon examining the Studebakers and Packards, and noticing that they’re missing seat belts, we did what you’d expect reasonable people to do: we asked the developers for seat belts.
Crypto’s response? If you want seat belts, build your own damn car!
12. Don’t Shift Development Burden to Users
In order to realize its full potential, crypto needs to continue permitting hyper-specialization. Folks who are really good at mechanism design need to focus on mechanism design; folks who are really good at enterprise integration need to focus on enterprise integration. Not everyone has to be developing platforms.
There’s no need to reinvent the wheel.
But the only way to free developers to specialize is to assure they will have meaningful choice between the crypto platform Studebakers and crypto platform Fords.
13. Hyperutility = Higher Earnings
By 1924, Ford had sold its 10,000,000-th car (for comparison, the U.S. population in 1924 was 114,000,000).
The Model T kept getting cheaper ($575 in 1920 v. $295 in 1924), with objective improvements in quality in every product cycle.
What was the key to this impressive and unprecedented growth? Answer: the automobile offered
The Model T’s key selling point wasn’t “economical” service in the sense of just cheap do-it-yourself maintenance.
An explicit Ford selling point was that buying a Model T increased the buyer’s earnings.
Please note: it wasn’t just “the automobile” that made individuals’ lives more efficient, and made sweeping broader economic efficiency gains possible. It was the barrier-smashing Ford Model T that did that.
The Model T sold a healthier, more productive, less-stressful, more efficient, and more bountiful future.
14. Be Honest About Risks & Costs
Every hyperutility app is like a knife. It can be used to cut apples, or to slice an opponent’s tires.
Crypto’s lesson from the car industry in this respect is a contrastive one: what not to do.
From early lobbying efforts to dismantle public transportation networks to exploding Ford Pintos to the most recent Volkswagen emissions scandal, the car industry has carved some gnarly skid marks in ethical norms like transparency and commercial good faith.
Crypto needs to acknowledge that yes, the Model T killed people. Yes, the Model T ushered in the petrol age, the consequences of which now pose a threat to humanity’s very existence. Yes, the Model T introduced supply-chain and factory-line production methods that were appropriated by warriors to make ghastly mass-killing machines.
But the lesson isn’t to stop making knives. The key takeaway from recalling the car industry’s dark sides is to heighten the need for transparency and to be open with drivers regarding the risks of motoring.
Hyperutility apps may find it cheaper to externalize costs of production onto others. But as one learns in Economics 101, these costs aren’t ever fully externalized. Ever.
Instead of hiding crypto risks and costs, crypto should be open about its risks and costs. This is the smartest way to minimize systemic risks and costs.
15. If You Build It; They Will Come
One of the key premises at the start of the analysis is this: there won’t be a tomorrow’s crypto worth speaking about until and unless crypto becomes accessible for novices .
This means giving rookies secure and easy pathways for earning crypto, as opposed to just inventing progressively easier ways to buy crypto.
The crypto developers who build secure and hyper-useful apps for earning crypto will write the rules of the 21st century economy.