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Disruptive Technology Views: Web3

Overview

Network effects - a hallmark of Web2 and a core driver of enterprise value - enables the success of a broad set of platform business models. A subtle but critical difference in how network effects operate will likely occur as the Web3 ecosystem gains ground in coming years. A broader set of “crowd effects” will likely emerge and change the economic calculus of what drives enterprise value.

In this issue of Disruptive Technology Views, we explore the megatrend “expanding power of the crowd”; explain Web3 “tokenomic” supply; and introduce “QuantaVenture” capital, a new approach to venture capital.

  • Web3 protocols thrive by keeping their resource providers and user base happy and engaged - extending the platform’s opportunities by ensuring shared rewards and ownership. Modeling these protocol and token-based dynamics and how they support or impede the achievement of crowd effects will become a new adjunct to fundamental analysis.
    Sandy Kaul, Head of Digital Assets and Industry Advisory Services
  • Accessing opportunities in Web3 requires an understanding of both the value of the entity offering the services - the commercial protocol - and whether the token pool they are providing accurately reflects the value of that protocol. We will continue to explore several key tokenomic demand and value-accrual factors to continue our education on the new Web3 space.
    Christopher Jensen, Head of Digital Assets Research
  • A new approach to venture capital is required. We have created a three-part investing model that we term “QuantaVenture” capital to optimize our investment opportunities in the Web3 domain.
    Kevin Farrelly, Director of Digital Asset Management
    Greg Scanlon, Vice President of Quantitative Blockchain VC

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