Wednesday, January 19, 2022

Pipelines --> Platforms --> Protocols

Interesting article about how market institutions are changing with blockchain technology:

  • Platforms drove market efficiencies by leveraging data to reduce search costs and verification costs. This involved an inherent trade-off as market participants — particularly consumers — needed to surrender their data to the platform to benefit from these market efficiencies. 
    • This surrender of data and attendant lock-in increased the risks of privacy invasion, loss of agency through over-dependance, and unilateral censorship as centralized platforms could change their policies at will.
  • With protocols, property rights go back to the creator and identity goes back to the consumer.



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