A Third Investment Thesis In Crypto

Given the title of this article, I should preface that this is not investment advice, but rather my observations of how the industry is evolving, and where the next opportunity lies for the mainstream adoption of this technology.

In October, I wrote about the investment themes that many funds are using to build their digital asset portfolios. Essentially, “coins” running as a core part of their blockchains fall into two distinct categories: “state-free money” (eg, Bitcoin) and the “Decentralized Internet” (eg, Ethereum). Although many coins have tried mimicking them, these are the undisputed category kings. Instead of imitating, I asked myself the question, “Is there another digital asset category that’s yet to be defined?”

I think there is, and it’s what I call Open Applications. These are programs that put users back in control within the context of existing online markets, and are universally accessible across these platforms. Using Open Applications, developers can hook into existing platforms like Uber, Shopify, or Twitch to create new breakthrough experiences.

Open Applications have the potential to solve the problems of closed markets. These problems are exemplified by news we’re seeing daily: Uber drivers protesting, YouTubers being demonetized and censored, Postmates riders going uninsured into busy downtown streets.

These closed markets have various stakeholders and economic interests. They present a perfect design space for online marketplaces to solve their unique economic problems – with many of the lessons we’ve learned in crypto-economics. Ethereum is working on building a decentralized web – a worthy initiative, but one that’s probably one to two decades away from being in-market at scale – so how can we start fixing the centralized platforms society uses today?

The solution to limitations of these…

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