The world changed when we went digital. Anytime an industry does this, it becomes completely different. To start, the products tend to be commoditized. This means the ability to separate one from the other gets difficult.
Another factor is that it generates a "winner take most" atmosphere. This is something we see with smartphones, Windows operating system, and social media applications. The numbers become truly astounding.
However, that does not mean the absence of opportunities. In fact, the digital world brought the long tail to life.
In this article we will cover how that took place along with how the move into the next generation Internet is going to alter things once again.
Millions of Titles
When we think back to the pre-Internet days, books and music give us a glimpse into that world.
These products, for the most part, were sold through physical locations. During this era, we actually saw book or record stores. They were designed to sell these products.
The problem came about with limitations. How many titles could a bookstore carry? According to ChatGpt:
Small independent bookstores may carry a few thousand titles, while larger chain bookstores or specialty bookshops can have tens of thousands of titles in stock.
Amazon turned this upside.
Many projected the e-book destroying the physical bookstore. Turns out, this did not happen, at least due to e-book adoption. What killed these entities was the Long Tail.
Amazon had the ability to carry millions of titles. The limitation was no longer present since, to add a book, another page was placed on the website. This opened up the possibility for the company to carry titles that only sold a few books per month. Multiply this over millions of titles and we can see how this resulted in a lot of sales.
This is what the Long Tail theory tells us. There is a lot of money outside the realm of the popular.
Keep Adding "Titles"
The key is to keep adding "titles". Here is where the next wave of platform success is going to come from.
Many are obsessed with the pulling of millions to Web3. This is not going to happen in ways people think.
Instead, we have to look at the building and development through the Long Tail lens. The way to take out incumbents is to become another Amazon. How does that a happen?
It is rather simple. The transition is not done by taking the major entities head on. People are not going to switch simply because there is an alternative. We have to presume most are content to utilize what they are.
Amazon did not beat out traditional bookstores simply because they offered thousands of the best selling titles. People were already able to get that in a manner most were comfortable with. An outing to the bookstore was something people enjoyed along with being able to get what they needed at a price that was acceptable.
Where Amazon made a difference was by offering titles people could not find at their local establishment. Here is where the hook was cast. Of course, once they were there, people realized they could buy the major titles too.
By grabbing people using the Long Tail, they were able to pull them into the popular section too.
Here is the model for Web3.
Focusing On The Wrong End
The image above is a graphical representation of the Long Tail theory.
We can easily see where the right side is where the focus should be. This is where Amazon targeted and the strategic advantage it provided.
It also uncovers the problem with what took place in the industry so far. We are spending all our time trying to focus upon the left hand side of the curve. In fact, we often mention the idea of the "Killer DApp".
While that might be out there at some point, the killer solution before us is the Long Tail. This is the entryway into larger adoption.
This means that the goal is not to build the Killer DApp. Instead, the target is to build lots of DApps (and other solutions). This means targetting whatever people like, especially if it is on the fringe.
Here is why building is so crucial.
A dozen more DApps added to Hive, bringing in 500 people each is another 6,000 daily users. This notion can be expanded to 100.
As we can see, the math is the same.
There is something to be said with diving into the ocean. It is an environment with a lot of fish. This is basically what was tried and we ran into Chase Bank, Twitter, and Amazon.
Instead, there is something to be said about diving into thousands of little ponds. Here is where we see the ability to cater to an overlooked market exists.
Hive Actually Is Starting This
We are seeing more developed on Hive. For this reason, there is a chance that the Long Tail theory could be implemented.
From a monetary perspective, we have mentioned the idea of micro-earning. This is a Long Tail concept in action. People are not earning huge money off a single payout. However, when a lot of smaller payouts are added together, it becomes significant.
It is no wonder that Hive has some popularity in regions such as Nigeria, Venezuela, and Cuba. These are areas where the financial bar is set much lower. This means we can apply the Long Tail concept here.
Naturally, this is just the start. It is an idea that can expand within the financial services realm. By providing something these individuals are not getting now, we can access a market that is underserved. Suddenly, there is massive appeal.
This is not disrupting the business of Bank of America or YouTube. At least to start. The idea is to get them "buying an underserved title" before selling them the "New York Times best seller".
We have to keep in mind that disruption always starts on the fringes. Here is where Hive should focus its attention. Over time, people will move further left on the Long Tail curve, providing a massive shift in the market.
It is how industries collapsed.
Yet for some reason, we believe the proper approach is to run head first into the largest entities.
The gold is in the fringes.