The Role of Good Product Managers in the Era of Fat Protocols

The Role of Good Product Managers in the Era of Fat Protocols

In today's rapidly evolving digital landscape, the role of product managers has become increasingly crucial. A good product manager serves as the CEO of the product, possessing a deep understanding of the market, the product itself, the competition, and the context in which they operate. They orchestrate various teams and organizations to deliver the right product at the right time, focusing on defining the "what" rather than the "how". Effective communication is another key strength of a good product manager, as they are skilled in conveying their ideas through written formats. They prioritize revenue and customer satisfaction, and they think strategically about the story they want the press to write about their product.

In parallel, the concept of "fat protocols" has emerged, as articulated by Union Square Ventures. In this model, the value within the technology stack is concentrated at the shared protocol layer, rather than the application layer. By leveraging shared open data and an incentive system through tokens, new players are empowered to enter the market and compete with existing applications. However, simply having an open network and shared data is not enough to drive adoption. The protocol token, which allows access to the network's services, serves as a key incentive for users to participate.

The combination of these two concepts - the role of good product managers and the emergence of fat protocols - reveals interesting commonalities and potential opportunities. Both emphasize the importance of understanding the market, competition, and context. They also stress the need for effective communication and strategic thinking. By connecting these points, we can extract actionable advice for product managers operating in the era of fat protocols:

1. Embrace the power of open networks and shared data: Good product managers should recognize the potential of leveraging shared open data to reduce barriers to entry and foster a more competitive ecosystem. By aligning their product strategies with the principles of fat protocols, they can create innovative solutions that tap into the opportunities provided by this model.

2. Incorporate incentive systems into product design: Product managers should consider the use of protocol tokens or other similar incentive mechanisms to drive adoption and engagement. By aligning user incentives with the success of the protocol, product managers can create a mutually beneficial relationship between users and the underlying technology.