Web3 business strategy | Scott Kominers | Summary and Q&A

TL;DR

Web3 businesses face unique intellectual and technical challenges, requiring a focus on incentive design and value creation. Competitive advantage comes from differentiation, including network effects, economies of scale, embeddedness, standalone value, technical advantages, and speed to market.

Key Insights

• 😀 Web3 businesses face intellectual challenges beyond technical challenges due to the need for incentive design and value creation.
• 🉐 Network effects, economies of scale, embeddedness, standalone value, technical advantages, and speed to market are all potential sources of competitive advantage for web3 businesses.
• 👨‍💼 Differentiating through value creation and aligned incentives is crucial for building successful web3 businesses.
• 👤 Measuring the impact of marquee users and their contributions can help understand their role in driving growth and value within a web3 platform.

Transcript

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Questions & Answers

Q: What makes web3 businesses different from traditional tech businesses?

Web3 businesses have fundamental intellectual challenges along with technical challenges. Incentive design and value creation through aligned incentives are key aspects of web3 business strategy.

Q: How can web3 businesses align incentives for value creation?

Web3 businesses need to consider balancing incentives between different participants in their ecosystem, such as users, developers, contributors, and the platform itself. This requires careful thought and consideration of the incentives involved.

Q: What are some sources of competitive advantage for web3 businesses?

Competitive advantage can come from network effects, economies of scale, embeddedness within other platforms, standalone value, technical advantages, and speed to market.

Q: How can web3 businesses measure the impact of marquee users?

Measuring the impact of marquee users can be challenging but can include split testing different interventions, measuring community and user growth, and analyzing interactions and contributions made by these users. Partnerships with marquee users can also provide opportunities for measurement and evaluation.

Summary & Key Takeaways

• Web3 businesses have both technical and intellectual challenges, requiring a focus on incentive design and value creation through aligning incentives.

• Competitive advantage comes from various sources such as network effects, economies of scale, embeddedness, standalone value, technical advantages, and speed to market.

• Understanding the different sources of competitive advantage will help in building a successful web3 business strategy.