Thread by @NickADobos

Part 2

This take by OP is so hilariously wrong

Yes musicians do capture value under this curve with a variety of monetization methods

Streaming revenue
Album sales
Concert tickets
Merchandise like shirts and posters
VIP events

NFTs let you do this with digital products

Selling digital collectibles, signed copies, and experiences are all new merch types!

Digital merch will let musicians extend much further into micropayments and capture and long tail and bottom of the curve

Also also capture huge payments from whales and super fans in the top!

This is a super obvious opportunity to capture missed revenue with the secondary ticket market

Often love shows get sold out instantly by scalpers who then resell them capturing the extra demand of the market

NFTs might be able to catch this

Point 3 circles back to the main point from the first article

Op also mentions social media, which people do gain distribution value from using. But again, they don’t share advertising revenue with platform creators in lots of cases. But Spotify does basically the same thing

Alright, back to the first article! Onto composability!

Very fair here, lots of bad crypto projects don’t really gain much by using crypto.

Op wants some non-abstract comparisons, so here are some!

Game economies

World of Warcraft had a booming one! So popular it had a US dollar exchange rate!

You could pay gold farmers to buy in game gold without earning it yourself.

If WoW can now integrate with crypto and defi, and instantly plug into a giant ecosystem of trade

Which would let users move gold out of the game or into it

Impossible currently

Or at least highly messy by hiring a random gold farmer of a shady website who has deliver your coins manually in game

Useful? Maybe not, but a new option for building game economies

For concrete examples look at Defi

We start with crytocurrency tokens

Then exchanges like uniswap, sushiswap, and curve can build with those tokens

They let you trade tokens easily and earn by providing liquidity to enable trading

Now there are a bunch of token exchanges all with different, token pairs, supplies and rates

So aggregators like 1inch or Matcha pull from uniswap, sushiswap, and more to get the best rates when trying to trade regardless of the source

Building on top

Similarly, aave, and compound start lending programs with cryptocurrencies.

Take out a loan or provide liquidity to earn a portion of the lending fees

Each lending pool then has its own return rates for depositors

Want to build an index fund on top of whatever currency or token you want? Balancer can do that.

Then Yearn finance then builds on top of all of these and more and uses various different money strategies to try and max the returns by building money bots

Again building on top

Since staking in yearn gives a return

Things like Alchemix and Abracadabra finance/magical internet money (yup that’s the real name)

Let you deposit the staked yearn tokens and create auto repaying loans

Using the gains from the other protocols to pay it back over time

There are so many options to build on top and reuse components

Making a new coin that uses common standards can instantly let you tap into all of these programs

Want to back a currency with something other than gold? Stable but not pegged to a fiat currency like USDT, or USDc?

Well OHM backs it’s coin with a treasury made up of other coins

Remixing

You don’t need Cryto for making media remixes, or for benefiting from it

But it allows new business models for remixes

If Naval turns his writing into an NFT, and someone else comes along and remixes it, they can link back to the original

Which means that when the remixer sells it, the original author can get paid

Right now this only happens with music labels and official remixes

You can’t post bootleg SoundCloud remixes on Spotify, because it infringes the rights without paying the original artist

NFTs can automate this

Then original author has a reason to promote the remix, because they are a stakeholder in the remixes. So the remixer and artist can now profit more

Tim, Chris and Naval didn’t profit from your medium article, even though you did indeed remix it

You can also combine programs like lego blocks but that’s a whole new thing

The concept of owning something in the internet

The example used here of moving a tweet to medium is one of the few small ways data mobility is currently allowed

In most cases you can’t even access or export your data unless explicitly enabled

You can’t take your follower list and their emails with you if you want to change social platforms

When you post on social media, or anywhere else. The company hosting the data can take it down.

Even your own website can be taken down by a web host or delisted by DNS

With crypto, that can’t happen

The only person who can edit that data is the person who has the password

You have ownership over publicly shared and hosted data

This was wasn’t possible before, hosts were in control

Even though it was your account, you weren’t in full control

You technically still aren’t now, but instead of one company being able to shut you down, you would need the entire crypto network to shut you down, much harder

Now hosts are open communities

The only way to circumvent all this that would be the for 51% or more of the entire crypto network mining network to decide to fork

and ignore the pre defined rules for some reason

Ok that’s two full threads max I’m tapping out!

Hopefully it’s helpful!