ethereum: three paths to profits (or pain)
TRANSCRIPT
ETHEREUM DENVER
THREE PATHS TO PROFITS (OR PAIN)
Presented by Kent Barton
March 9th, 2016
/whois kent barton
• Founder: Ethereum Denver• Co-Founder: Glassbox• Former CMO: Decentralized Capital• Early Contributor: EtherEx
THE VIEW FROM HERE
During the last 3-4 months, a handful of very important questions have been answered:
- Will the Ethereum team run out of money?
- Can Ethereum gain traction with large, credible organizations?
- Can Ethereum prove itself as a stable, secure, and functional platform?
- Can Ethereum offer itself as a compelling alternative in the midst of Bitcoin’s civil war?
The result…
But significant questions remain, including:
WHAT ARE THE KILLER APPS?
It’s imperative that useful applications for Ethereum are developed.
Opportunities abound for the well-informed and well-positioned.
Profit Path #1: DEVELOPMENT
The platform needs developers (developers, developers) to build useful applications
If you’re a developer, you are in a very good position
Developer Opportunities
• What you can build is only limited by your imagination (and Ethereum’s limitations)
Developer Opportunities
• What you can build is only limited by your imagination (and Ethereum’s limitations)
• There are ample opportunities to get involved with new and existing DApps
Developer Opportunities
• What you can build is only limited by your imagination (and Ethereum’s limitations)
• There are ample opportunities to get involved with new and existing DApps
• Two ways to profit: build code that has a small fee, or charge for your services
Developer Opportunities
• What you can build is only limited by your imagination (and Ethereum’s limitations)
• There are ample opportunities to get involved with new and existing DApps
• Two ways to profit: build code that has a small fee, or charge for your services
• Four languages to build in: JavaScript, Python, Go, and Lisp
Developer Challenges
• You must thoroughly understand Ethereum, and build within its inherent limitations
Developer Challenges
• You must thoroughly understand Ethereum, and build within its inherent limitations
• Creativity and inventiveness are essential (the obvious ideas are already being implemented)
Developer Challenges
• You must thoroughly understand Ethereum, and build within its inherent limitations
• Creativity and inventiveness are essential (the obvious ideas are already being implemented)
• DApp code is open source, and can be readily forked
Developer Challenges
• You must thoroughly understand Ethereum, and build within its inherent limitations
• Creativity and inventiveness are essential (the obvious ideas are already being implemented)
• DApp code is open source, and can be readily forked• The profit model for DApp fees is unproven
Profit Path #2: INVESTMENT
Money is rushing into the Ethereum
ecosystem
Savvy investors should continue to make money.
Others will lose.
The Investing Landscape (so far)
• Ether (ETH) – Ethereum• Augur (REP) – Decentralized Prediction Market• Maker (MKR) – Lending Protocol• Slock.IT – Real-world devices on the blockchain• Digix (DGD) – Gold on the blockchain
Investment Opportunities
• High potential for outsized gains
Investment Opportunities
• High potential for outsized gains• The ability to get in at the “ground floor” on truly
innovative projects like Slock.it and Augur
Investment Opportunities
• The potential for outsized gains• The ability to get in at the “ground floor” on truly
innovative projects like Slock.IT and Augur• High volatility creates opportunities for swing traders and
(if you’re slightly insane) day traders
Investment Opportunities
• The potential for outsized gains• The ability to get in at the “ground floor” on truly
innovative projects like Slock.IT and Augur• High volatility creates opportunities for swing traders and
(if you’re slightly insane) day traders• A multitude of asset classes, including futures, options,
and even tradable crowdsale tokens
Investment Opportunities
• The potential for outsized gains• The ability to get in at the “ground floor” on truly
innovative projects like Slock.IT and Augur• High volatility creates opportunities for swing traders and
(if you’re slightly insane) day traders• A multitude of asset classes, including futures, options,
and even tradable crowdsale tokens• For the well-funded, there are many new businesses in
need of operating capital
Investment Challenges
• Systemic Platform Risks• Scams (Caveat Emptor!)• A lack of profitable business models• Same investing risks as always• Extreme volatility - even by crypto standards
Profit Path #3: ENTREPRENEURSHI
P
So…you have a cool idea (but you’re not a
developer)
Entrepreneurial Opportunities
• Smart Contracts create new ways to earn revenue, and novel ways to operate a business
Entrepreneurial Opportunities
• Smart Contracts create new ways to earn revenue, and novel ways to operate a business
• There are many business models begging to be disrupted by decentralization
Entrepreneurial Opportunities
• Smart Contracts create new ways to earn revenue, and novel ways to operate a business
• There are many business models begging to be disrupted by decentralization
• Plenty of room for ancillary businesses
Entrepreneurial Challenges
• You’re already up against some well-funded and well-connected projects
Entrepreneurial Challenges
• You’re already up against some well-funded and well-connected projects
• Your idea is useless without developers
Entrepreneurial Challenges
• You’re already up against some well-funded and well-connected projects
• Your idea is useless without developers• DApp profit models remain unproven
Entrepreneurial Challenges
• You’re already up against some well-funded and well-connected projects
• Your idea is useless without developers• DApp profit models remain unproven• Not everything should be decentralized
Entrepreneurial Challenges
• You’re already up against some well-funded and well-connected projects
• Your idea is useless without developers• DApp profit models remain unproven• Not everything should be decentralized• For all of the excitement and novelty of this
bleeding-edge space, it’s still business
TAKEAWAYS EDUCATE YOURSELF
CONNECT WITH OTHERS
CODIFY BUSINESS RELATIONSHIPS
Q&A