exhibit A: a garbage man who is happy because he's getting paid in appcoins
Recently, I sat down with a mentor of mine and we got to talking - really nerding out - about the possibilities of the blockchain.
One of the topics that our conversation grew into was the topic of currencies and their isolation within specific distributed applications. What do I mean by isolation? Well, think about the United States Dollar (USD). We use the USD for everything; we use it to buy our groceries, pay our rent, or for services such as lap dances. The USD has uses all across the entirety of human interaction (read: 'the' economy) and so, in this sense, the USD is not isolated. Not only does the USD span across the entirety of the US economy, its value is of course also closely tied to many components of the entire world economy at large. Cryptocurrencies, or more specifically, appcoins are, on the other hand, isolated within the distributed apps they reside in.
But I digress as this a tangent which detracts from what I want to focus on. Let's definitely come back to it in a later post, though.
The folks over at coincenter.com put it nicely, when they said: "Open platforms have proved difficult to create because it has been historically difficult to monetize them even if they become successful—by nature they are public goods."
Ok. So this all makes sense, especially when you think of internet 'projects' such as Twitter or SoundCloud. Many would find it hard to argue with the idea that these services provide immense value to society.
For example, Twitter was the place for information during the 2011 earthquake in Japan.
Chance the Rapper gives a shoutout to SoundCloud at the Grammy's.
And SoundCloud is attributed with the birth of whole new music genres and the unearthing of blockbuster talent, adding to the colorful fabric of human culture.
Where these platforms have fallen flat is monetizing. Again, at this point, I have more or less made some pretty obvious statements for anyone living above ground and out from under rocks.
So the question is: if decentralizing apps will create an ecosystem where such public-good-like platforms can thrive, would this also apply to other public goods, in real life (IRL)? Is it feasible to incentivize public services and goods using blockchain technology?
I will end this here and hopefully it is a nice place for us all to start a discussion.
Look out for further musings on this topic and more.
Edit: I've since added a Part 2 where I answer some of these questions.