how to make money from networks

Yonatan Ben Shimon
5 min readJun 17, 2019

For a long period of time, i felt that there is something in common to most of the big platform in the world , and there is something interesting about the fact that participants in this netowkrs can also become rich people .

I think I got it .

All these platforms are giving people a role that didn’t exist before and give them a way to play and in order to make money you don’t necessarily need to be the one that invent this platforms rather be a super participant in an early stage .

In this article i would argue there are 3 ways to make money out of collaboration platforms :

  • Build on the networks
  • Super Participate on the network
  • Bet on the networks

Before going into details let’s define the idea of a collaboration network and give a few examples for how one can make money from becoming early participant.

A collaboration network (within and without blockchains ) — is a place that people can come and serve someone and other people can be served by them and the platform introduces new ways to interact between people that believe in the same thing.

all the good networks enable people to open a business on top of the network and serve people.

Examples for Mainstream networks are (outside of the crypto space ) : counterstrike , airbnb, facebook,google ,amazon , instagram ,bird and lime , etc… — in all these platforms early participants made a lot of money if they recognized how to serve the network in the right way in a early stage .

A few examples of super participation :

  • on counterstrike you will hire people to play and make points, on instagram to open a super channel — all based on the type of community on the platform .
  • On airbnb — people rent and subrented in airbnb
  • On alibaba and Amazon — the first stored bacame massive

Now lets go to blockchains — that is why im writing it , i recently understand that blockchains networks going to be trillions of dollars within the next ten years and early participants can take a big chunk of it . there are a few strong signs that indicate what is going to happen.

  • Stable coins by big companies more and more companies are and will continute to challenge regular money and make it internet money. this money is turning into a new wealth that these companies are creating in the world . each of these stable coins is the foundation of an ecosystem around it (will elaborate ). Facebook invented a coin which can create a fundraising ecosystem around it , new businesses, new derivatives etc..
  • Proof of stake and validators — enable people to participate and receive interest on their effort in the same way Airbnb let people to rent their own home . each person that does it is a messenger of the network. The reason i think it is exciting is that the supply is locked so 90% of the funds are locked the value of the ecosystem is stable and it maintains a strong engagement and higher network effect and potential for the asset.
  • Defi -new financial inclusive tools for the 3billion people that are unbanked — tools for inclusive financial instruments that enable anyone with a stable coin (soon to be billions of people ) to be part of a new financial system . and on the other side any small entrepreneur can now have a new crowd that will pay him without the bank to be involved .

So , what are the ways to make money from networks?

  1. Build on networks — so in order for any network to have a wide distribution it needs to be easy to use — there needs to be a technical development infrastructure that will enable people to use it — wallets, tools to stake , stake dashboard, explorer ,defi tools , stable coins , native exchange and more . — right now there is a massive opportunity to build a for profit tools for people to use for networks such as : polkadot , facebook , edgeware , bitcoin (second layer) , cosmos , tezos , zenprotocol and more and more. — I suspect that as we go forward in time there will be millions of new networks that will be created both by big companies and also by small startups- enabled by substrate and other tools and will be startups that are only possible with blockchains — developers communities and tools will be one of the most important components for this company .

Another business that is very close to it is fundraising, to start a Kickstarter fundraising site dedicated for one coin and which will host projects that improve the ecosystem will be massive.

2. Participate on networks — the second way to make money out of this networks is to participate — when i say participate i mean either maintain the network and run a node (for you or for others ) like some are doing, invest in the network and then run a node , or just create an dapp on top of the network . that can be in the form of a fund or in the form of a service or both. The most important thing here is to be the first to identify these networks and how to participate and gain a name so you'll be the first — a few example for exciting networks to participate : polkadot , definity , facebook , telegram, Edgeware , tezos and much more that are not exist yet ( big corporation that will launch their pos chain and new and exciting startups . my prediction is that most of the big tech companies will become to a decentralized networks with some form of pos mechanism.

Uber will coordinate its drivers with nodes

Airbnb will organize some of the house owners

Alibaba and amazing will coordinate some of the shop's owners

Etc..

participation also means participate on defi tools — for example, make a loan on compound .

3. Bet on networks — I always wanted to have an easy way to bet on the success of future networks — for example, to bet on the number of eth locked in maker , the number of parachains in polkadot , how many validators facebook willl have and what will be the pool hashrate dominance in bitcoin . now im working on an exchange called exottix that hopefully will enable that , im also believe that there will be hundreds of new networks that will be created soon and each of them will have an ecosystem of derivatives. there is another aspect for the mix between pos networks and derivatives — to create a fix income instrument out of any node — for example — if there was an instrument for eos node — one could get 10% a year in fiat value and not in eos coins and this will also bring a lot of fiat money into the ecosystem . from people outside of crypto that are looking for yield .

I believe in order to be a big part of the coming future you must have a foot in the door in each of the parts I mentioned.

hope i told something new.

Yonatan

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Yonatan Ben Shimon

care about discovering and enabling new types of assets as tools to give me and everyone wealth and freedom.