The blockchain industry seems unique, new and frantic, but the evolutionary pattern of new industries over time is eerily consistent. Consider the California gold rush, the global oil boom or the rise of the internet.
Each of these economic disruptions saw a similar pattern. The first is a shift from speculation to substance. Each industry that survived began with the promise of riches, with speculation in these new worlds accelerated by marketing, often highlighting the sizzle. All of it is designed to create true believers and drive adoption.
W. Sean Ford is chief operating officer of Algorand, a blockchain platform that powers the creator economy and a range of projects that converge traditional and decentralized finance.
The second element of economic disruptions is shifting demographics. Over time, the mix of people who are early adopters changes, and other types of individuals, institutions and companies start to move in. These new participants then put pressure on the field to introduce what is necessary to successfully build these new industries.
Third, the value that's created in these new sectors often comes after the initial dust settles. It's the second wave of participants that start steering things toward building real businesses, with fundamentals that become the foundation for sustained growth.
The blockchain industry is shifting to substance. The fundamental understanding of what is possible is far clearer. We've seen lots of use cases. The demographics have shifted. Institutional capital is entering the space. You know you're starting to get somewhere when there is the potential or actual use of blockchain by tens of millions of people who don't necessarily even know that they're using blockchain.
Continue reading: https://www.coindesk.com/layer2/2022/03/02/how-to-make-blockchain-a-new-kind-of-economic-engine/
Each of these economic disruptions saw a similar pattern. The first is a shift from speculation to substance. Each industry that survived began with the promise of riches, with speculation in these new worlds accelerated by marketing, often highlighting the sizzle. All of it is designed to create true believers and drive adoption.
W. Sean Ford is chief operating officer of Algorand, a blockchain platform that powers the creator economy and a range of projects that converge traditional and decentralized finance.
The second element of economic disruptions is shifting demographics. Over time, the mix of people who are early adopters changes, and other types of individuals, institutions and companies start to move in. These new participants then put pressure on the field to introduce what is necessary to successfully build these new industries.
Third, the value that's created in these new sectors often comes after the initial dust settles. It's the second wave of participants that start steering things toward building real businesses, with fundamentals that become the foundation for sustained growth.
The blockchain industry is shifting to substance. The fundamental understanding of what is possible is far clearer. We've seen lots of use cases. The demographics have shifted. Institutional capital is entering the space. You know you're starting to get somewhere when there is the potential or actual use of blockchain by tens of millions of people who don't necessarily even know that they're using blockchain.
Continue reading: https://www.coindesk.com/layer2/2022/03/02/how-to-make-blockchain-a-new-kind-of-economic-engine/
