A unique aspect of decentralized economies is the ability to allow people to participate in something large. Most decentralized projects are community driven. Their success is dependent on community adoption and performance.

Participants want to feel valued and a part of every project in a decentralized economic system. Often this is achieved through the acquisition of a project’s native currency, which in most cases makes participants eligible to participate in the decision-making processes of a project.

There is much more to community involvement in projects than just participating in decision-making. Other cases involve community members being responsible for integral activities like block generation, validation and finality.

Although this applies to all decentralized projects it is not applicable for Vuele. Vuele is a protocol that allows users to stream and collect exclusive feature-length movies in limited editions. The project’s fundamentals were described in detail in an earlier publication. This can be found here.

The advantages of a decentralized economy

Cameron Chell (Executive Chairman of Currency Work and co-head at Vuele) continued the discussion in an exclusive conversation with DailyCoin.

He believes that making people feel part of the community and the overall decentralized economy is crucial. In his words, the biggest thing about business today, and a notable advantage of the decentralized economy, is that it’s not really about cutting up the pie, so much as it is about the size of the pie increasing.

Chell suggests that decentralization can increase the size of the pie and, more importantly, it makes it possible to have unhindered access in the community.

In comparison, Chell noted that the decentralized business model works “counterintuitively to the traditional, or old business methodology, where you’re trying to dominate a particular space.” In the same vein, if people lose interest in collaborating, or perhaps stop feeling like part of the community, then they might as well turn against the project.

“Because it’s decentralized and because everybody has such incredible access to the content now. It’s impossible to get the network effect that as many people are interested in working together. [like they are] a part of that community, then that community will turn against you very, very quickly,”
Chell explained.

Chell mentioned Facebook (NASDAQ.:) and Google(NASDAQ.:) when it came to dominance. He claimed it was more simple for some businesses to do this because you had a greater chance of becoming dominant if you adopted your ideas sooner. Unfortunately, other businesses with the same goals have found it difficult to achieve success in the space.

Decentralized economies work in direct opposition to that. Each decentralized app has access to the global network and can thrive alongside each other, regardless of whether or not they operate in the same area. It is clear that no single project can be the dominant one for long periods of time.

“In today’s world, you know, if you’re holding a dominant position for a decade, that’s incredible, but because it’s really a matter of only being hanging onto those for a year or two before some other new technology or new user experience, you know., Because you’ve got so many minds able to contribute in the decentralized economy, right,”
Chell was not surprised.

Community Destroys Monopoly

Decentralized economies are characterized by the exclusion of any monopolization.

Chell says it’s important that the community and not developers are in a position of power. The reason for this, in Chell’s words, is due to the fact that “user contributions to a project destroys any form of monopolies.”

“What’s really important from a business standpoint, is to ensure that you are community-based and have a decentralized position, so that what’s dominating is not you or your team, but the community,”
Chell is emphasized.

That said, Chell concluded by stating that the size a project’s community has room to grow to will determine whether it can achieve a dominant position or not; more so, without exhibiting any trait of monopoly.

Flipside

• People can switch among several open-source projects because the economy is distributed. This makes it more challenging to retain users for a longer period of time and could prove impossible.
• Success of any decentralized project depends on its community and not its technical efficacy or solution.

What are the reasons to care?

The new web generation is not like Web 1.0 or Web 2.0. Instead, it’s community-driven. This means that developers have less power and authority over end-users. In such an environment, it is important to recognize the value of community participation in every project.

You can watch the entire interview right here

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