Opinion by: Hatu Sheikh, founder of Coin Terminal
Although blockchains and DApps are critical, crypto industry stakeholders often prioritize applications based on adoption principles and revenue distribution. DApps won’t function without their underlying chains. The markets must uphold blockchains for long-term value generation.
The value perspective is wrong
Blockchains and DApps should work collaboratively to coordinate their functions for better usability. Instead, analysts create a binary between chains and DApps based on Web2’s structural frameworks.
In “Fat Protocols,” Joel Monegro argued that value within the internet stack comprises “thin” protocols and “fat” applications. In other words, investing in the underlying protocol technologies like TCP/IP, HTTP, and SMTP gives lower returns than applications like Google and Facebook.
Monegro further stated that the value is reversed in the “blockchain application stack.” The underlying protocol layer accumulates more value than the application layer, leading to “fat” protocols and “thin” applications. He later<a data-ct-non-breakable="null"