(Industry) The Decentralized Future isn’t Ready

Beware if you see a marketing campaign that features this kind of art: they are likely peddling nonsense
  1. Insufficient investor trust in the crypto/ICO model
  2. Insufficient regulatory oversight
  3. Marketing still emphasizes the “how” and overlooks the “why”
  4. Too few examples of “first steps” that most people understand
  5. Mixed mode use of crypto: both as currency and for investment purposes
  6. No true “early adopters” of substance
  7. Software does not yet truly qualify as “open source”
  • The crypto equivalent of the “dotcom” crash has not yet occurred
  • It’s going to take time for decentralization to be widely-adopted

The crypto equivalent of the “dotcom” crash has not yet occurred

There’s plenty of people who believe that the “crypto-winter” of 2018 was the cryptocurrency equivalent of the 2000 “dotcom” crash, and they watch each spike in Bitcoin value, believing it’s the modern equivalent of the boom that ushered in a mainstream adoption of ecommerce and Internet-based businesses.

2018 was ugly.
At the time of this article’s publishing the value of Bitcoin was $55,000

It’s going to take time for the decentralization to be widely-adopted

“The cloud” has been around since the 1950’s. Did you know that?

Watch for a maturation in these seven areas

What needs to be addressed before the crypto/decentralized market is ready for prime time?

(1) Insufficient investor trust in the crypto/ICO model

I really don’t want to get too far into this topic of ICOs, because it’s a bottomless pit, but here’s a high level overview:

(2) Insufficient regulatory oversight

This particular position is extremely unpopular among crypto-enthusiasts, but they are eager to avoid a conversation that needs to happen:

(3) Marketing still emphasizes the “how” and overlooks the “why”

A “tell” of an insufficiently mature market is how much the messaging is dominated by the language of engineers, who tend to fixate upon “how” things work, rather than “why” it matters.

(4) Too few examples of “first steps” that most people understand

The promise: nearly free apps, completely decentralized! No implementation plan necessary, because it’s Web 3.0!

(5) Mixed mode use of crypto: both as currency and for investment purposes

Some projects promote the use of their currency within the app, and they encourage investors to purchase their currency for purposes of investment.

(6) There’s no true “early adopter” community, and no true user base of substance

By definition, an early adopter is someone who will pay any price for a product or service, just to boast the status. Definition of an early adopter:

(7) There’s no true open source community — resulting in high maintenance costs

Did you know that fully 85–90% of a software product’s TCO (total cost of ownership) is maintenance?

In summary

Give it time; the variety of technologies currently known as “decentralized” will significantly augment and mature the Internet as we know it.

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Kent Dahlgren

Kent Dahlgren

Product management fix-it guy. World-famous people skills. Extremely small hands. (edit) marketing lady says I’m also supposed to say “CEO of software company”