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Why are decentralized applications the future?
Censorship Resistant Apps
The majority of people online—60 percent of internet users—live in countries that have engaged in some form of censorship. Every day, important news is silenced and activists are repressed by governments who want to limit free expression. Applications built on decentralized infrastructure have a natural resistance to any form of censorship, institutional or nation state.
Network Effects
Applications that rely on network effects for value creation face a chicken and egg user adoption problem. Decentralized infrastructure with currency embedded in the experience offers developers a new way to grow their communities.
Better Business Models
The internet’s prevailing business model, “the advertisement and engagement based model” - is one that over time results in privacy destruction, censorship, self sabotage and monopolization. With new forms of cryptographic digital assets and mechanism design, decentralized applications have the power to disrupt this business model and cultivate a better internet.
Reduced Counterparty Risk
When two parties enter into an agreement to exchange good and services the trust required to facilitate the transaction(s) can be hard to create when online. Smart contract based applications remove the need for a trusted third party, and instead use programmatic trust - enabling a new set of decentralized financial and commerce applications.
- 1 Censorship Resistant Apps
- 2 Network Effects
- 3 Better Business Models
- 4 Reduced Counterparty Risk
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An ecosystem of decentralized infrastructure, tooling, consumer products, and education.