Incentives for innovation?

What incentives exist for innovation on the ethereum platform, so that developers can recover investment costs?

How can a decentralized application be monetized, and are there mechanisms to deter immediate and costless replication of such an application?

For ethereum to really be the TCP/IP of contracts, it has to give people incentives to build things like facebook, google, etc. on top of it.

PS: I refer to incentives above and beyond the mechanisms driving Open Source production.



Best Answer

Answers

  • maciejolpinskimaciejolpinski Member Posts: 11
    Just adding to Jasper's comment.

    The Bitcoin ecosystem is a good example - you don't monetise on the protocol layer but on the application layer (so Bitcoin Core is the protocol and Blockchain.info - the application).

    Similarly here - you develop a 'contract' that by definition will be immediately used, copied & modified by everyone but your reference implementation of that contract is where the monetisation happens.

    You then compete on the user experience, features and you can charge for premium features. Of course, your reference app can be copied too but once you built a user base & trust people tend to stick with what they know. Blockchain.info is open source too but has enormous stickiness and grows exponentially.
Sign In or Register to comment.