Research Summary
The report discusses the concept of “Coordination Bandwidth” in blockchain technology, highlighting its potential to enhance coordination across various parties. It explores the role of blockchain in two specific projects: Hivemapper, a global mapping network, and Pudgy Penguins, a crypto-native brand. The report emphasizes the transformative potential of blockchain in creating new business models and facilitating global coordination.
Key Takeaways
Understanding Coordination Bandwidth
- Concept of Coordination Bandwidth: The report introduces the term “Coordination Bandwidth” as the space on a blockchain that allows for coordination across various parties. It suggests that blockchain can significantly extend our capabilities to coordinate, potentially processing up to 1,000,000,000 bytes/second of coordination bandwidth in the future.
Hivemapper: A Blockchain-Enabled Mapping Network
- Blockchain in Mapping: Hivemapper, a global mapping network, uses blockchain technology to reward contributors with HONEY tokens. The network has mapped over 10% of the world’s roads with over 30,000 individuals contributing. The report highlights the freshness of Hivemapper’s data as a key advantage over competitors like Google Maps.
Pudgy Penguins: A Crypto-Native Brand
- Blockchain in Branding: Pudgy Penguins, a global crypto-native brand, uses NFTs to turn customers into partners with a chance for financial upside based on the network’s success. The report suggests that this model creates more powerful organic evangelization than any paid influencer could achieve.
The Emergence of Crypto-Native Business Models
- New Business Models: The report suggests that blockchain technology is enabling the emergence of new, previously impossible business models. These models leverage tokenization, instant settlement, and trustless interactions to create a financial incentive for contributors, thereby enhancing coordination and collaboration.
The Future of Blockchain-Based Incentives
- Blockchain Incentives: The report predicts that blockchain-based incentives will play a significant role in the future, facilitating coordination and collaboration on a global scale. It suggests that these incentives could lead to the creation of more crypto-native business models and real-world use cases.
Actionable Insights
- Explore the Potential of Coordination Bandwidth: Businesses and investors should consider the potential of blockchain technology to enhance coordination across various parties. This could open up new opportunities for collaboration and innovation.
- Consider the Role of Blockchain in New Business Models: The success of projects like Hivemapper and Pudgy Penguins highlights the transformative potential of blockchain in creating new business models. Businesses should consider how they might leverage blockchain technology to create similar models in their own industries.
- Understand the Power of Blockchain-Based Incentives: The report suggests that blockchain-based incentives could play a significant role in the future of business. Understanding these incentives and how they can be used to enhance coordination and collaboration could be key to staying competitive in the future.
