“Every time a VC or a banker asks me which blockchains are interesting I tell them the same thing: Ethereum has already won”. Rune Christensen.
This is an old quote from Rune. But worth repeating.
It clearly lays out the basis of understanding the growth of Ethereum as a group forming network that will grow as follows:
“The core value proposition of Ethereum can be summarized with a single word: Synergy.” So says Rune Christensen of MakerDao before explaining how they can integrate with a number of eth projects, to then state:
- “It is the permissionless and turing-completeness of Ethereum that allows all of these projects to seamlessly integrate with each other as first class citizens, increasing the value and utility of each other, because we all write to the same virtual machine and use the same language and the same standards.
- Each project in the list above becomes a multiplier on the existing value of our system, resulting in exponential, rather than linear gains, for every new project that integrates with the others. Similarly every time any one of the above mentioned projects gains a new user or somehow grows in size, it ripples through the list and positively effects every other project in one way or another. Another huge advantage is that all of the integrations and synergies listed above require zero direct interaction or collaboration between the projects – it just emerges by itself due to the open source nature and streamlined standards of Ethereum. Of course in most cases there is still direct collaboration between the projects in this early stage of the ecosystem, but it’s still important to note that this isn’t a requirement – this will become a huge advantage once the network starts to really scale.
- The result of this inherent synergy is an unbeatable network effect in accordance with Metcalfe’s law. Every time a VC or a banker asks me which blockchains are interesting to look at in the industry, I tell them the same thing: Ethereum has already won. It has reached critical mass and become what can best be described as an unstoppable, ever growing snowball.
Another way to put it is if we decided to build Maker on a different blockchain, we’d have significantly less users and liquidity, and would have to spend a lot more resources on building things that others have already built for us to use as first class citizens on Ethereum, and due to those factors, we’d most likely be dead or dying at this point.”