Beyond Bitcoin and Ethereum, what is the third investment thesis for cryptocurrency networks?
Open Foundation
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 closed markets lies in an open design space, where Open Applications represent a way of integrating blockchain solutions into existing centralized platforms. My assertion is that no one is focusing on this at scale, although I strongly believe it has the potential to demonstrate tangible value to society at large, and can be implemented in the short term.
The complexity and dynamics of crypto have made this industry become too insular and unapproachable to the average person. But by going back to the fundamentals, you can identify the trends that are shaping what will become an incredibly important industry that has benefit to the general population. I believe Open Applications are a new category of digital asset that represents the future of blockchain and crypto in its ability to solve platform problems on a global scale.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
