Platform without the Monopoly?
As I was reading this piece about the “indirect network effects” of the Ethereum ecosystem, I kept thinking ‘yeah, isn’t this just the same argument that’s been made for all previous platforms too?’
In a sense, the synergies painted here are very similar to the synergies you get with the core functionality of an operating system. Except, in this case, you can add these components over time rather than having to install them all at once as part of the operating system. So maybe this argument is really more akin to applications adding value to an operating system? Yeah, that’s probably closer, but in this case, the apps really do have a lot of interoperability creates value for one another.
At any rate, I’m still ramping up on Ethereum these days and I found this article worthwhile to that end. This conclusion is worth noting:
“The flip side of all this is that it becomes much harder to build giant businesses off direct network effects on Ethereum. The radically streamlined ecosystem makes the cost of switching to alternative services much lower. Even from an end user’s perspective, it becomes much simpler to switch from one service to another, so long as they are on the underlying Ethereum platform and have an Ethereum account/address that works across any application.”