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Altcoin Innovations, PMF, and Building Back Better on Bitcoin

Ryan Gentry

and

Nathan Wilcox

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Strike: Successfully Absorbing Altcoin “Innovation”

  • May 2011 - Jed McCaleb posts Bitcoin without mining to bitcointalk
  • Jun 2013 - Ripple launches XRP faucet, focus on payments/remittances
  • Aug 2017 - Segwit activates on Bitcoin, enabling the Lightning Network
  • Jul 2020 - Zap raises Series A after ~3 years of open source dev
  • Jun 2021 - payments/remittances go mainstream on Bitcoin

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Other Altcoin “Innovations”

2014

CDPs and Stablecoins

​

MakerDAO

2016

“Uber for your”

- Hard Drive

- GPU

- Bandwidth

GOL, FIL, OXT

2018

Automated Market Makers

Uniswap

2015

Prediction Markets

Augur

2017

Liquidity Pools

Aave, Compound

2019

Blockchain Indexing & Querying

The Graph

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Key Questions

  1. Which of these “Innovations” have achieved PMF?

​

  • Which of these “Innovations” have big potential TAMs?

​

  • What enabling tech is required to build similar products on bitcoin?

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Assessing PMF

Innovation

PMF Metric Title

PMF Metric Amount

Fast, Cheap Payments

Tx Fees Paid (30D)

~$70k

CDPs

Total Debt Issued

$7.83B

Stablecoins

Total Debt Issued

$106B

Prediction Markets

Open Interest

$1.8M

Uber for Storage

Tx Fees Paid (30D)

<$1k

Uber for Compute

Tx Fees Paid (30D)

<$1k

Uber for Bandwidth

Tx Fees Paid (30D)

<$1k

Liquidity Pools

Tx Fees Paid (30D)

~$250k

AMMs

Tx Fees Paid (30D)

$2.2M

Indexing & Querying

Total Queries (30D)

12B

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Assessing TAM

Innovation

TAM Metric Title

TAM Metric Amount

Fast, Cheap Payments

Remittances + Payments Mcap

~$900B

CDPs

Mortgage Debt Outstanding

$16.9T

Stablecoins

Eurodollar Mcap

$13T

Prediction Markets

Betting Site Mcap

~$50B

Uber for Storage

Cloud Storage TAM 2025

~$150B

Uber for Compute

Cloud Compute TAM 2025

~$800B

Uber for Bandwidth

VPN TAM 2025

~$50B

Liquidity Pools

Money Markets

~$5T

AMMs

Citadel AUM + Renaissance AUM

$200B

Indexing & Querying

Google Mcap

$1.8T

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Assessing Enabling Tech

Innovation

Enabling Tech

Fast, Cheap Payments

Segwit (2017), LN (2018)

CDPs

DLCs (2020), Covenants (??), ZK-rollups (??)

Stablecoins

LN (2018), DLCs (2020), RGB (2021)

Prediction Markets

LN (2018), DLCs (2020), Covenants (??)

Uber for Storage

LN (2018), Impervious (2021), 805805 (2021)

Uber for Compute

LN (2018), Impervious (2021), 805805 (2021)

Uber for Bandwidth

LN (2018), Impervious (2021), 805805 (2021)

Liquidity Pools

DLCs (2018), RGB (2021), Covenants (??), ZK-rollups (??)

AMMs

DLCs (2018), RGB (2021), Covenants (??), ZK-rollups (??)

Indexing & Querying

...nothing?

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Total Assessment

Innovation

PMF

TAM

Enabling Tech

Total

Indexing & Querying

3

3

3

9

Fast, Cheap Payments

2

3

3

8

Stablecoins

3

3

2

8

Uber for GPU

1

3

3

7

CDPs

3

3

1

7

Liquidity Pools

3

3

1

7

AMMs

3

3

1

7

Uber for Storage

1

2

3

6

Uber for Bandwidth

1

1

3

5

Prediction Markets

1

1

1

3

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Total Assessment (with Covenants and/or ZKRs)

Innovation

PMF

TAM

Enabling Tech

Total

CDPs

3

3

3

9

Liquidity Pools

3

3

3

9

AMMs

3

3

3

9

Indexing & Querying

3

3

3

9

Fast, Cheap Payments

2

3

3

8

Stablecoins

3

3

2

8

Uber for GPU

1

3

3

7

Uber for Storage

1

2

3

6

Uber for Bandwidth

1

1

3

5

Prediction Markets

1

1

3

5

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Questions and/or Airborne Rotten Fruits