Get the best insights in crypto delivered directly to your inbox. Subscribe to our newsletter below.

mail icon

A Conversation with Tom Shaughnessy on The Evolution Of the Web3 Stack

Multicoin Capital
By Multicoin Capital
January 21, 2020 | 31 minute listen

Editor's Note: This podcast was originally published by Chain Reaction. Please follow the related links to visit their content. The following description has been syndicated here for reference.

Listen now

Visit this link to listen to the episode in full: https://podtail.com/en/podcast/chain-reaction/multicoin-s-kyle-samani-the-evolution-of-the-web3-/

Description

Host Tom Shaughnessy talks to Kyle Samani, Founder and Managing Partner of Multicoin Capital. Kyle discusses his predictions for the middle layer and full-stack development, attracting developers to the crypto space, how competition in the industry will develop, and a complete discussion on the Web3 Stack.

Key Points

While there are a lot of opportunities higher up the stack, there is the most money in layer one because that’s what has been proven stable over time.The next few years will see an explosion of Web3 experimentation.In crypto, like with everything in technology, developments will happen very slowly, then suddenly very quickly. Quotes

“When I think about opportunities for investing in the middle layer, they are generally less competitive as a function of market size, and not as many developers recognize that those markets exist.” –Kyle Samani“As these services continue to mature, we’re going to start to see people build world-class applications—we’re going to start to see new things come out over the next 12 months or so.” –Kyle Samani Episode Highlights

Kyle recently published his 2019 update to the Web3 stack, which is about inverting the data model that powers the internet so that users own their own data.Kyle predicts that what we will increasingly see over the next few years will be more heterogeneity in investments, which will lead to more consolidation.Tech companies and teams that don’t pivot the right way will likely go down with their last dollar.Kyle thinks companies that are forced to run on a chain other than Ethereum or choose to explore that will choose chains that are very good at one specific thing.It’s difficult to attract new developers into crypto because the business models to make money are not yet understood.People are not good at having an historical sense of technology and understanding that once the basic idea for something arises, it takes many more years for the first iteration of the thing that will make those core ideas work.There are a lot of opportunities right now in the middle layers.There is the most money in layer ones.Developers typically want to know what will be possible in 12-24 months so they can build better applications upfront.There are structural issues with pushing complexity up the stack; the whole purpose of layer one is to abstract the complexity.Kyle agrees with Spencer Bogart of Blockchain Capital that most competition will eventually happen vertically, on one or a small number of chains.Kyle predicts that Polkadot will attack Ethereum this year, based on their recent behavior.Full-stack integrated approaches are great, but no one team can pull off all that complexity in any reasonable timeframe.

Music Attribution:

Cosmos by From The Dust | https://soundcloud.com/ftdmusic Music promoted by https://www.free-stock-music.com Creative Commons Attribution 3.0 Unported License https://creativecommons.org/licenses/by/3.0/deed.en_US

Disclosure: Unless otherwise indicated, the views expressed in this post are solely those of the author(s) in their individual capacity and are not the views of Multicoin Capital Management, LLC or its affiliates (together with its affiliates, “Multicoin”). Certain information contained herein may have been obtained from third-party sources, including from portfolio companies of funds managed by Multicoin. Multicoin believes that the information provided is reliable but has not independently verified the non-material information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This post may contain links to third-party websites (“External Websites”). The existence of any such link does not constitute an endorsement of such websites, the content of the websites, or the operators of the websites. These links are provided solely as a convenience to you and not as an endorsement by us of the content on such External Websites. The content of such External Websites is developed and provided by others and Multicoin takes no responsibility for any content therein. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in this blog are subject to change without notice and may differ or be contrary to opinions expressed by others.

The content is provided for informational purposes only, and should not be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. The contents herein are not to be construed as legal, business, or tax advice. You should consult your own advisors for those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by Multicoin, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Multicoin is available here: https://multicoin.capital/portfolio/. Excluded from this list are investments that have not yet been announced (1) for strategic reasons (e.g., undisclosed positions in publicly traded digital assets) or (2) due to coordination with the development team or issuer on the timing and nature of public disclosure. * This blog does not constitute investment advice or an offer to sell or a solicitation of an offer to purchase any limited partner interests in any investment vehicle managed by Multicoin. An offer or solicitation of an investment in any Multicoin investment vehicle will only be made pursuant to an offering memorandum, limited partnership agreement and subscription documents, and only the information in such documents should be relied upon when making a decision to invest.*

Past performance does not guarantee future results. There can be no guarantee that any Multicoin investment vehicle’s investment objectives will be achieved, and the investment results may vary substantially from year to year or even from month to month. As a result, an investor could lose all or a substantial amount of its investment. Investments or products referenced in this blog may not be suitable for you or any other party.

Multicoin has established, maintains and enforces written policies and procedures reasonably designed to identify and effectively manage conflicts of interest related to its investment activities. For more important disclosures, please see the Disclosures and Terms of Use available at https://multicoin.capital/disclosures and https://multicoin.capital/terms.