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ethereum-business-model.md

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Ethereum philosophy & core values

White Paper Ethereum highlighted its core principles, that will serve as the guidelines for the future development of the protocol:

  • Simplicity: the Ethereum protocol should be as simple as possible, even at the cost of some data storage or time inefficiency (this is in line with the democratizing aspect of the Ethereum ecosystem, where also average programmers need to be able to code on top of it).

  • Universality: a fundamental part of Ethereum's design philosophy is that Ethereum does not have "features" (this is another guiding principle in line with Ethereym’s vision, as it was born as a general-purpose protocol, more like a programming language able to accommodate any application chosen by its users, rather than a feature-driven protocol).

  • Modularity: the parts of the Ethereum protocol should be designed to be as modular and separable as possible (this is critical, as overtime, as it scales, Ethereum can become thousands of times more efficient by enabling other protocols to run on top of it).

  • Agility: details of the Ethereum protocol are not set in stone.

  • Non-discrimination and non-censorship: the protocol should not attempt to actively restrict or prevent specific categories of usage (here incentives and disincentives are built into the protocol, so there is no automatic judgement on which use cases should be run on top of it. Rather it will be costly to run them, as transactions processed through Ethereum's protocol have a “gas fee” - the cost to run a transaction - and therefore as long as the use case is able to sustain these costs they can run on the blockchain).

Ethereum’s value propositions

As a business platform enabling entire ecosystems to form on top of it. Therefore, it has a multi-faceted value proposition, that can be reconducted to a few key points (in part connected with its core values and use cases):

  • Simplicity: becoming an average Ethereum developer shouldn’t take more than a few months, with one of the largest developer’s communities around it's possible for newbies to learn the foundation quickly.

  • Modularity: Ethereum has been born as feature or use-case agnostic, as such it has the ability to host many potential applications.

  • Staking: as it moves toward Eth2, investors can also stake their Ethereum tokens (lock them in until the roll out of the Eth2 and earn interests).

  • Scaling: if you build a very large application on top of Ethereum is possible.

TODO

  • Distribution Model
  • Economic Model: Supply Side, Incentives/Disincentives, & Commercial Applications