You need to differentiate two important aspects of a crypto project, just like you would, while looking at a conventional busine
08 Dec 2022, 12:56
You need to differentiate two important aspects of a crypto project, just like you would, while looking at a conventional business:
1. the true purpose of a crypto venture
2. the medium (the mean) to reach that purpose
The purpose of most conventional businesses rests on creating value for their instigators and investors. In other words, one’s interest will lie mainly in the financial success of the venture - and usually in its perenniality, so as to generate further wealth.
Crypto projects slightly differ in that respect, as often there is an additional element of innovation/technological achievement for their founders. Some founders might even feel vested with a bigger role, as they are convinced there is a gap to fill, so humanity can progress as a whole.
Yet, on the investor side, the main purpose usually remains the creation of value. As most crypto projects have no shareholding system, investors will hold tokens instead of shares - with the value of those tokens being somehow linked to the success of the project.
By which mean does a business venture grow and generate wealth? The answer is probably obvious to anyone: by selling products and/or services to its customers.
The same principle applies to any crypto project, where the commercial product is the project’s own blockchain, and/or various services built on lower-layer blockchains.
At least, those principles SHOULD apply, as there is currently a lot of irrationalities in our nascent industry. Indeed, we are witnessing many projects with weak to no commercial product - and no customers - ending up spending a lot of ressources to market their own token to investors. In other words, they end up identifying their crypto token as a genuine product to market. Such a behaviour creates a speculative investment bubble - with little commercial fundamentals. The resulting inflated market is of course bound to collapse, sooner or later.
As we slowly progress towards the tokenization of our society, commercial product - read utility - will be key for the perennial future of genuine crypto projects. In the case of MultiVAC, the commercial product is a fast, lightweight, highly scalable and cost-effective base-layer (L1) blockchain that can be used to simplify and authenticate many automated processes/mechanisms of our society (industrial, financial, governmental, etc). What’s more, it is a blockchain with phenomenal storage capabilities, which significantly broadens its utility scope.
You are correct to mention that there is a myriad of L0/L1 competitors. There are many technologies that are currently being developed to scale blockchain. Modular Vs. monolithic, DAG Vs. sharding, etc. A lot of newcomers have joined the party.
But development takes time - this is a long-distance race - and very few projects have a fully operational ecosystem. Even fewer can scale as promised. Ethereum is being developed for over 7 years. MultiVAC for over 4 years.
The sharding technology being developed by MultiVAC has very strong fundamentals, and in my opinion, industries will favour fully-integrated blockchains (monolithic), as it mitigates uncertainties linked to security and single point of failure. Future will tell 🤷🏼
Now you understand why B2B customers are inherently segregated from investors, as you are looking at two different sides of a corporate entity.
Those customers will however participate to the valorisation of your tokens, as MTV tokens will need to be acquired to pay for transaction gas fees. On the longer-term, this should replace most of the current investment speculation. In a sustainable - and commercial - way 😉