Protocol v Application Investments
The word protocol in this context means the ‘plumbing’, ‘electrical cables’, ‘foundations’ upon which applications are built.
In the internet world, most people don’t care or know about protocols. Protocols are essentially invisible, they include the Transmission Control Protocol and the Internet Protocol. These were developed/funded by the US Government (Department of Defence). It has not really been possible to invest directly in internet protocols, the investment opportunity has been in the applications, such as Twitter, Facebook, Google etc.
In the blockchain world, the development of protocols has only just begun and it is possible to invest directly in their creation. So imagine owning the ‘electrical cable’ upon which Twitter, Facebook and Google are built!
At Blockchain Assets we propose to invest at the protocol, platform and application layers.
At the protocol level the investments will most commonly be via a cryptocurrency or token which is building a protocol. The first and still one of the most exciting opportunity to date being the Ethereum protocol.
At the platform level the investments will be on smart contracts that will form the "operating system" of the new blockchain economy.
At the application level the form and structure of investments will be more traditional in nature, (backing ideas and teams via equity investment) but will focus only on those business that are in some way utilising blockchain to enhance or disrupt an existing industry.