We aren’t talking about other areas of value accrual like identity/data and computational power. Amazon became the most valuable company in the world by figuring out a way to get the closest thing to what we would call protocol-level valuations in AWS, by making it easy and cheap for other applications to run on their infrastructure.Īn important distinction is that when we talk about value accrual for AWS, we are primarily referencing cloud based storage. If you consider that AWS runs about 40% of the internet, you can start to understand that this is a VERY big opportunity as we scale to new use cases in Web3. However, AWS itself is still an application that is used by many organisations and is still running on top of traditional internet protocols that are not accruing the value from all of the usage (TCP/IP, HTTP, SMTP, etc.).
As time passed, Amazon Web Services became far more profitable than the original application it was built to serve. In scaling their business and applications, they realised other companies would likely need similar cloud services.
They essentially built Amazon Web Services (AWS) to help scale their e-commerce businesses, applications and websites. In fact, because of how investment was structured and returned to capital, workers and governments at large, applications normally drove the demand for protocol- level improvements. A few obvious companies like Google and Facebook should come to mind here.īecause of how value accrued, it was far more profitable for venture capitalists to invest in applications than to invest in protocol-level improvements. This data was then monetised by selling it to third parties or using it to serve better advertising experiences to their users. We know this to be true because no singular company, person, or organisation runs, governs, and profits from the internet at aggregate, or as a whole the internet, as a whole, is in the public domain.įor this reason, most of the value accrued in applications and in data that these applications were farming, was from their users. Historically, value for technology is accrued at the application layer. However, with new distributed technologies, not only is the measurement of value becoming easier, but the distribution effects of the value are being amplified. By value, we mean both societal impact/improvement and economic wealth (the part that is measured by token market caps and blockchain company revenues). It’s tough to fathom, much less measure, the amount of value creation on the internet. If that sounds complicated, we will explain. This boils down to the Fat Protocol Thesis and the Fat dApp Thesis. Well, it matters whether you think value accrues at the protocol level, at the dApp level, or both. So why does this matter? Why are we talking about semantics? An introduction to fat protocols and dApp protocols We could also say that, arguably, Sylo is the most adopted decentralised MESSAGING protocol and application. This is because Sylo, which runs on SYLO Protocol, is considered one of the most widely-adopted and scalable dApps in the blockchain ecosystem. A more easily defensible, but separate assertion, is that Sylo is one of the most used app-specific protocols in the crypto ecosystem. If there is difficulty in accepting the last statement, we can at least settle on the fact that Sylo, as a distributed protocol, runs one of the most adopted decentralised applications. As it stands, Sylo is one of the most widely adopted and scalable PROTOCOLS for high volume APPLICATIONS in the crypto ecosystem.
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