What makes a blockchain attractive? Why do people opt to use a particular blockchain?

Here are my thoughts:

  1. The blockchain needs to have an intuitive, sleek interface that performs straightforward functions. It should allow for the trustless transfer of value. But then, what is ‘value’? Value is usually stored in depreciating currencies. A few, like Bitcoin, appreciate against others. However, this introduces volatility - a trait undesirable for almost everyone. So, what’s the need of the hour? A stable currency that aligns with the value of goods.
  2. This then begs the question, what is this stable currency? How do we define the value of goods? How can we implement this on a small scale and for whom?

Many individuals are now attempting to implement blockchain in countries with rudimentary financial infrastructure, using mobile networks and more. As methods of payment evolve, I believe there’s scope for research within the Polkadot ecosystem. While I don’t claim to have all the answers, I can offer an example of a potential solution:

a) Collect a resource that people require.
b) Allow it to appreciate in value.
c) Trade it exclusively against a stable currency backed by this resource and built on DOT → thereby creating demand for blockspace

This might be a simplified view, but it’s an effective one. The resource could be anything from office space, or creative space, to commodities like rice, metal, or grains. It could be represented by financial instruments, or even be land.

The idea is to then build stablecoins against each of these commodities, thereby stimulating blockspace demand on Polkadot. Your thoughts are welcome.

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Working through.

Collect a resource that people require

  • The first resource that people (customers) require is security as a service. As we can see from the move to system chains and ISMP, the requirement for the relay to pass messages is receding.
  • This is Kusama/Polkadot’s primary value proposition, even above blockspace which is a feature of the service.
  • This SECaaS resource is called coretime and it is priced in either Instant or Bulk forms.
  • Customers purchase coretime as a raw material, let’s call it rawtime.
  • Lets stick with historical data and estimate 12 months of bulk rawtime on Kusama at c. $10,000.
  • The customer must sell USD/GBP/EUR etc for KSM/DOT, this creates demand for the currencies.
  • The customer then transforms rawtime into a new network resource that they can sell on.
  • Rawtime → Spectrum, an industry specific form of rawtime that fulfils a need.
  • The customer goes to market with this new spectrum narrative.
  • The customer packages up Spectrum as a Nested Relay chain
  • The customer is now effectively a reseller of rawtime.
  • The customer has a cost of $10,000 for 12 months of rawtime.
  • The customer has revenues of $500,000 selling spectrum.
  • The customer has 50x the value of rawtime.
  • This ‘use-case’ demonstrates the business model of coretime.
  • When the customer returns to purchase the next year of rawtime, it now costs $20,000.

These assets would be held in the reserve of the nested relay chains - replacing a fungible treasury with a Non Fungible one.

Asset backed currencies each born from a different coretime industry

We can then begin to consider how the common good treasuries provide ‘advances’ against this rawtime transformation, recouping against the success of different approaches.

This when treasury ROI makes actual sense.