Composability is to software as compounding interest is to finance 🧵
A very high percentage of the software in the world is open source. Most datacenter software is open source, mobile phones OSs make heavy use of open source, most next-gen devices like self-driving cars, drones, and embedded computers run mostly open source software.
Open source began as a fringe political movement in the 80s and remained mostly a curiosity through the 90s, but started growing exponentially in the 2000s and after.
Why? Because open source unlocked the power composability.
Composability is the ability to mix and match software components like lego bricks. Paraphrasing @naval, it means every software component only needs to be written once, and can thereafter simply be reused.
One of the most exciting aspects of web3 is the composability of protocols and tokens. We see this is in DeFi when protocols build on top of each other the way composite protocols like Yearn or Element do.
People are beginning to explore composability using NFTs, with Loot and the ecosystem around it being a really interesting example.
First, where are we today? Let’s start with some anecdotes.
We have an awesome games team led by @Tocelot that invests in founders out of top game studios like Riot, Epic, Blizzard etc. Almost 100% of founders they've met with recently are exploring NFTs in some way, or are already building NFTs into their games
Two years ago, Vitalik wrote a seminal post about the hard, unsolved problems in crypto: vitalik.ca/general/2019/1… 🧵
One problem he talked about is sybil resistance, which is closely related to what is known as the “proof of unique human” problem.
It would be very useful if everyone on earth could get, for example, a non-transferable NFT that proved they are a unique person while also protecting their privacy.
One of the most compelling ideas in web3 is composability — the ability to combine and remix internet services like lego bricks. @element_fi, a prime example of what composability enables. I’m excited to share today that @a16z crypto is investing in Element’s Series A. 🧵
Element has built a new DeFi primitive that enables capital-efficient fixed and variable yield markets. We led @element_fi’s seed round earlier this year, and they’ve made rapid progress since. medium.com/element-financ…
One use for Element is treasury management for DAOs and traditional institutions. Element eases the accounting process and reduces the need to actively manage funds. Their fixed-rate yields are consistently among the highest available app.element.fi/fixedrates/
Before: restrict usage with copyright. Tension between remixing/sharing and monetization.
Now: give away the base layer via public domain. Let the internet share and remix for maximum virality. Monetize by selling ownership/virtual goods/ NFTs.
The playbook comes from video games. Used to charge for game itself / base layer. Now the most advanced games give the game away free and charge for complements, usually cosmetic virtual goods.
Excited to share that we've co-led the seed round in @manifoldxyz, which equips artists with creative tools that allow them to push the boundaries of NFTs and web3 🧵a16z.com/2021/10/05/inv…
I've written that the early web and early days of web3 have similar limitations: people's interaction were "read-only" and founders started with skeuomorphic copies of older technologies. cdixon.mirror.xyz/0veLm9KKWae4T6…
Manifold is offering compelling ways to move beyond the skeuomorphic phase by letting creators experiment with novel applications that will push NFTs and web3 into entirely new directions.