What is the impact of the fat protocol thesis on the cryptocurrency industry?

3 answers

• Paul ClancySep 26, 2020 · 6 years ago
  The fat protocol thesis suggests that the value in the cryptocurrency industry is primarily captured by the protocols themselves, rather than the applications built on top of them. This means that the underlying blockchain technology and the protocols that enable transactions and smart contracts have a greater potential for value creation than the individual applications. The impact of this thesis on the cryptocurrency industry is significant as it shifts the focus towards investing in the protocols and infrastructure, rather than just the applications. This has led to increased investment in blockchain projects and the development of new protocols with the aim of capturing more value in the industry.
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• Krabbe HayJun 06, 2022 · 4 years ago
  The fat protocol thesis has had a profound impact on the cryptocurrency industry. It has changed the way investors and developers approach the market. Instead of solely focusing on the applications and projects built on top of the blockchain, there is now a greater emphasis on investing in the underlying protocols. This shift in perspective has led to increased investment in blockchain infrastructure and the development of new protocols. It has also sparked a debate about the value distribution in the industry, as the protocols now have the potential to capture a larger share of the value created.
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• Rupanjali SahuJun 15, 2026 · 18 days ago
  The fat protocol thesis, popularized by Joel Monegro, suggests that the protocols in the cryptocurrency industry will capture the majority of the value, while the applications built on top of them will have less value. This has significant implications for the industry, as it means that investing in the protocols themselves can be more lucrative than investing in the applications. This has led to a shift in focus towards investing in blockchain infrastructure and protocols, as they have the potential to generate more value over time. However, it's important to note that the thesis is not without its critics, who argue that the value distribution in the industry is more complex and nuanced than the thesis suggests.
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