Ethereum: Three Paths to Profits (or Pain)

ETHEREUM DENVER

THREE PATHS TO PROFITS (OR PAIN)

Presented by Kent Barton

March 9th, 2016

/whois kent barton

• Founder: Ethereum Denver• Co-Founder: Glassbox• Former CMO: Decentralized Capital• Early Contributor: EtherEx

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjw-OrogqHLAhXKyIMKHRhxARsQFggdMAA&url=http://www.meetup.com/Ethereum-Denver/&usg=AFQjCNFdpIBWMGzslUXfF-9hLhsR3i-svg&sig2=UKRhW_zryC1TUHcatTpWGw

http://www.glassboxinvestments.com/

http://www.decentralizedcapital.com/

https://etherex.org/

THE VIEW FROM HERE

During the last 3-4 months, a handful of very important questions have been answered:

- Will the Ethereum team run out of money?

- Can Ethereum gain traction with large, credible organizations?

- Can Ethereum prove itself as a stable, secure, and functional platform?

- Can Ethereum offer itself as a compelling alternative in the midst of Bitcoin’s civil war?

The result…

But significant questions remain, including:

WHAT ARE THE KILLER APPS?

It’s imperative that useful applications for Ethereum are developed.

Opportunities abound for the well-informed and well-positioned.

Profit Path #1: DEVELOPMENT

The platform needs developers (developers, developers) to build useful applications

If you’re a developer, you are in a very good position

Developer Opportunities

• What you can build is only limited by your imagination (and Ethereum’s limitations)



• There are ample opportunities to get involved with new and existing DApps




• Two ways to profit: build code that has a small fee, or charge for your services




• Two ways to profit: build code that has a small fee, or charge for your services

• Four languages to build in: JavaScript, Python, Go, and Lisp

Developer Challenges

• You must thoroughly understand Ethereum, and build within its inherent limitations



• Creativity and inventiveness are essential (the obvious ideas are already being implemented)




• DApp code is open source, and can be readily forked




• DApp code is open source, and can be readily forked• The profit model for DApp fees is unproven

Profit Path #2: INVESTMENT

Money is rushing into the Ethereum

ecosystem

Savvy investors should continue to make money.

Others will lose.

The Investing Landscape (so far)

• Ether (ETH) – Ethereum• Augur (REP) – Decentralized Prediction Market• Maker (MKR) – Lending Protocol• Slock.IT – Real-world devices on the blockchain• Digix (DGD) – Gold on the blockchain

Investment Opportunities

• High potential for outsized gains


• High potential for outsized gains• The ability to get in at the “ground floor” on truly

innovative projects like Slock.it and Augur


• The potential for outsized gains• The ability to get in at the “ground floor” on truly

innovative projects like Slock.IT and Augur• High volatility creates opportunities for swing traders and

(if you’re slightly insane) day traders




(if you’re slightly insane) day traders• A multitude of asset classes, including futures, options,

and even tradable crowdsale tokens




(if you’re slightly insane) day traders• A multitude of asset classes, including futures, options,

and even tradable crowdsale tokens• For the well-funded, there are many new businesses in

need of operating capital

Investment Challenges

• Systemic Platform Risks• Scams (Caveat Emptor!)• A lack of profitable business models• Same investing risks as always• Extreme volatility - even by crypto standards

Profit Path #3: ENTREPRENEURSHI

P

So…you have a cool idea (but you’re not a

developer)

Entrepreneurial Opportunities

• Smart Contracts create new ways to earn revenue, and novel ways to operate a business



• There are many business models begging to be disrupted by decentralization



• There are many business models begging to be disrupted by decentralization

• Plenty of room for ancillary businesses

Entrepreneurial Challenges

• You’re already up against some well-funded and well-connected projects



• Your idea is useless without developers



• Your idea is useless without developers• DApp profit models remain unproven



• Your idea is useless without developers• DApp profit models remain unproven• Not everything should be decentralized



• Your idea is useless without developers• DApp profit models remain unproven• Not everything should be decentralized• For all of the excitement and novelty of this

bleeding-edge space, it’s still business

TAKEAWAYS EDUCATE YOURSELF

CONNECT WITH OTHERS

CODIFY BUSINESS RELATIONSHIPS

Ethereum: Three Paths to Profits (or Pain)

Technology

Transcript of Ethereum: Three Paths to Profits (or Pain)