Wellness Wisdom vol.33: 15 Mindful Product Principles from Allen Zhang, Father of WeChat

Wellness Wisdom vol.33: 15 Mindful Product Principles from Allen Zhang, Father of WeChat

In the world of product management, there are few individuals who have left a lasting impact on the industry. One such person is Allen Zhang, the Father of WeChat. Zhang's philosophy on product creation is rooted in intuition, human psychology, and technological feasibility. His approach goes beyond mere logic and embraces the artistic and literary aspects of product management.

Zhang believes that a good product is innovative, useful, beautiful, and easy to use. It should be unobtrusive, modest, and honest. A good product pays attention to small details, is environmentally friendly, and doesn't waste resources. It follows the principle of "less is more," avoiding excessive design. These principles form the backbone of Zhang's product philosophy.

One of the key aspects of Zhang's approach is treating users as friends. He believes that genuine empathy towards users is essential for creating products that will be used for a long time. It's not just about business transactions; it's about building relationships with users. Every feature or service in WeChat goes through Zhang for approval, resulting in a singular and coherent identity for the platform.

Zhang's focus on quality is another crucial element of his product philosophy. He believes that technology should help increase efficiency and provide value to users. When a feature or service is created solely for gaining traffic without considering its value to users, it is likely to face problems and won't last.

Furthermore, Zhang sees the competitor as WeChat itself. He understands that users' tastes and needs change over time, and it is essential for the organization to keep up with those changes. He believes that if WeChat can't give users even a glimmer of hope, it becomes challenging to judge the rightness or wrongness of their actions. It is crucial for a platform to benefit its users to have a lasting impact.

Moving on to the world of crypto and NFTs, we encounter a different set of principles related to network effects in Web3. Unlike traditional web platforms, Web3 projects combine multiple forms of network effects. These network effects are weaker and less defensible compared to Web2.0 variants.

In the world of blockchain, the addition of more nodes increases capacity and value for buyers of the Ether token. This creates cross-side network effects on a 2-sided interaction network, where token buyers can also be validators and vice versa. However, this network structure also presents challenges, such as negative network effects and commoditization risk.

While blockchain protocols lack the matching component seen in Web2.0 platforms, they have their own form of network effects. The more smart contracts there are for a protocol, the easier it is for developers to build new ones. However, cross-chain composability may dilute the impact on defensibility.

The value and utility of Web3 projects are still unclear, as they are in the early stages of experimentation and evangelism. One example of a Web3 project that combines different network effects is Axie Infinity. The game's marketplace component reinforces the interaction network effects and is highly defensible due to its differentiated supply.

The concept of DAOs (Decentralized Autonomous Organizations) adds another layer of interaction network, where user identity influences defensibility. The scale of the network determines the importance of user identity. Axie Infinity, for example, requires players to purchase Axies from the marketplace, leading to the emergence of scholarship programs that rent Axies to aspiring players.

The future of web3 projects in terms of defensibility is still uncertain. It could be that true network effects no longer serve as a meaningful source of structural defensibility, and instead, it depends on the tribal and psychological switching costs of each project community. Alternatively, we may still be too early in the web3 cycle for sustainable defensibility to emerge, as seen in the early years of web1.0 and web2.0.

To evaluate the potential of web3 projects, it is essential to consider how users interact with each other, whether the addition of a user increases value for all users, how scalability affects value, and how defensibility changes with adoption.

In conclusion, the product principles of Allen Zhang and the network effects in Web3 provide valuable insights for product managers and entrepreneurs. Zhang's focus on empathy, quality, and coherence can help create products that stand the test of time. Understanding the layered network effects in Web3 can guide the development and evaluation of projects in this emerging space.

Actionable advice:

1. Prioritize empathy: Treat users as friends and genuinely empathize with their needs and desires. This will help create products that resonate with users on a deeper level.

2. Focus on quality and value: Ensure that every feature or service provides value to users and aligns with the overall vision of the product. Avoid creating features solely for gaining traffic without considering their long-term impact.

3. Embrace experimentation: In the world of Web3, there is still much to learn and explore. Embrace experimentation and be open to new possibilities. This will help navigate the evolving landscape and identify opportunities for sustainable defensibility.

By incorporating these principles and understanding the dynamics of network effects in Web3, product creators and entrepreneurs can navigate the ever-changing world of technology and create products that have a lasting impact.