We are going to have a world with thousands of coins. This will be supported with billions of tokens.

It is a concept that goes against the thinking of money. For some reason, there is a concept that we will consolidation to the point where there are only a handful of coins. I see the exact opposite.

In A World Of Abundant Networks, We Have An Abundance Of Coins

At present, networks are scarce. We all assemble around the same ones. Facebook, Amazon, PayPal, and Twitter are some of the main ones. The Internet is a siloed system with a handful of companies, maybe 25, controlling the majority.

In the past, networks were slow to form. It took a lot to set them up. This required people with the technical know-how along with the money.

With the introduction of blockchain, along with other technological advancements, we are getting to the point where one with the most basic of IT skills can set up a network of this nature. It is even possible, with public chains, to fork them and start something new.

Hence, the future is an abundance of network, contrary to the present Internet that we see.

This changes the entire equation. If networks are abundant, what becomes scarce? The abundant-scarcity equation is always in operation.

With this, my view is dedication becomes the scarce resource. With network use voluntary, retaining users is paramount. Facebook can get away with a lot due to the network effects it attained. In the future, one will not be able to rely upon that.

Source

A Coin For Every Network

Before getting into the next idea, let us get some definitions.

For the sake of this article, coins are base layer. This is something like BTC, ETH, HIVE, or ADA. It is tied to a blockchain.

Tokens are those related to initiatives, games, or applications.

Obviously, with the latter, we are looking at billions. In fact, do not be surprised if tokens exceed the number of websites we see. Games, for example, have a number of tokens.

In fact, this is already the case. Tokens are very common in the computer world.

Here is a screenshot from Llama2. Notice how it tracks the tokens used and tokens/sec.

These are not tradeable, similar to Resource Credits on Hive. They do, however, quantify activity. This is just one example of how these are used.

Tokens and coins are going to be part of the dedication (or loyalty) process. Just like companies use loyalty rewards to keep customers engaged, we will see something similar. That said, this is going to be on a much larger scale since the financial implications are much bigger.

Another factor tied to this is going to be the utility. This is a paramount factor when it comes to network effects, something often overlooked by the general Web 3.0 advocate. To them, the solution is always more users. While that is a piece of the puzzle, it is not the sole factor.

Actually, if we look through much of the history with networks and digital platforms, the users were the second focus. Here is where we can envision the concept of the network-state emerging.

A coin will reside on most of these networks, capturing the value of what is generated.

Feeding Value To The Ecosystem

Within the ecosystem, there are many participants.

One that is already being created are platforms. Here is where we see tokens entering the picture. The concept of thousands (or more) of tokens within an ecosystem is easy to comprehend.

The basis of this is that each will help to feed value to the base layer, which is captured by the coin. It is why the value of the base will always exceed any application. markets might temporarily be awry, the value generated by every platform or game is fed towards the network.

This is one of the avenues which dedication will spread.

As people find more utility within the ecosystem, the value grows. This sets of the impact of compounding as the Flywheel Effect can take place.

Essentially, we are looking at a Web 3.0 version of the platform idea leveraged by so many of the Silicon Valley tech companies.

Where they fall short is in the ability to offer equity. tokenization solves this problem along with capturing value the present system misses.

Building Value

Does this mean that all tokens and coins will be worth a lot? No.

We only have to look at websites for the answer. There are some, like Google and Facebook, which are worth a fortune. Most, however, are nothing sites. Of the billions that are out there, very few get much traffic.

Networks tend to follow a path. There are some that are more important than others. Within them, there are some nodes that also have the same. Not all are equal.

This means we get the emergence of hubs. A hub is something that has a lot of connections. This can be a node or even a network. Right now, in public networks, we can consider Ethereum more as a hub since there is a lot of building tied to it. In the future, this could change as alternatives are offered.

The "must have bridge" in the future might not be to that blockchain.

What I see as changing is the fact that users have a vested financial interest in the network and platforms they are using. Hence, there is incentive to utilize as much as one can since it financial enhances him or her. This is not the case with something like Facebook.

It is also not the case with a nation. When was the last time you saw an increase in the value of your holdings because the GDP of the country went up? The answer is never since there is nothing capturing this.

Again, tokenization is the difference maker. It is also why we will see tokens tied to everything.

Users will have the responsibility for building value. They no longer can claim to be passive in the equation. For years, people complained that Web 2.0 platforms made them the product, "stealing" their data.

Web 3.0 changes all of this. The challenge, for many, is going to be the fact the onus is upon them. No longer is one simply a user but, rather, an owner. Quite frankly, this is something most are not accustomed to dealing with.

Stake is going to be crucial. This is going to be a large factor in determining where people "set up shop". It is akin to being in the early frontier days. Search around for a piece of land, settle down, and build.

Wherever people end up, there will be coins and tokens denoting what is taking place.

This means we are not dealing with a small handful. Instead, the exact opposite is going to be the case. Coins and tokens, like networks, will be abundant.

Dedication or loyalty is what will be scarce.

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