The Platform Matrix: All Platforms Are Not Created Equal

First, platforms have an opportunity to build an underlying social graph of unique data and then to self-cannibalize by letting other platforms draw on it: the real financial opportunity for every platform, in other words, is to become a protocol that others build on top of.

Today’s dominant internet platforms are built on aggregating users and user data. As these platforms have grown, so has their ability to provide value — thanks to the power of network effects — which has enabled them to stay ahead.

Platforms1, on the other hand, create network effects when they aren’t interoperable. Ethereum has a community of developers building tools, which attracts more developers and users. Competing blockchains must convince developers to switch and rewrite years’ worth of software. Because the value isn’t transferrable, Ethereum has a strong moat. These... See more