Decentralization and new network effects

“Decentralization” has proven to be a massive disruptive force, enabling new services previously impossible in classical systems - both at the infrastructure layer with the decentralized architecture of blockchain and at the app layer, which is now comprised of decentralized applications with no single point of control or failure. The incorporation of AI into decentralized systems is only adding to the power and applicability of this new architecture. 

Decentralization is reshaping how products are adopted, as with product-led growth, in terms of the hyper focus placed on the end user (versus IT departments or enterprise heads). It’s also helping to empower these and other individuals relative to corporations, through things like DAOs. In this way, blockchain will facilitate novel designs in terms of where ownership and power lies between the individual (the consumer, creator, or employee) and the collective (a DAO perhaps, or a traditional enterprise). The implications of this will create major shifts in the fabric of our society and economy. 

We’re in the early days of blockchain and Web3—startups providing Web3 infrastructure, developer tools, and security are just in their infancy. But the signs of growth and significance are promising, especially if you follow, as we do, developer interests. We invest where the best and brightest technologists spend their time—and they are increasingly spending their time on Web3.

In Web3, we are focused on crypto-native infrastructure, developer tooling, security applications and products which enable new forms of ownership.