Blockchain Flywheel: Inside Ethereum’s Distribution Flywheel

An imaginary flywheel of the development of a crypto ecosystem, and more, in particular, the Ethereum ecosystem. As developers join in and the community strengthens, more use cases are built, which attract more and more users. As users grow exponentially, businesses become interested in the underlying ecosystem, thus investing more in it. These resources are invested back in the protocol to make it more scalable, thus reducing gas fees for developers and users, facilitating the adoption of the whole business platform. 

Distribution and marketing model for blockchain-based business models

Ethereum is among the leading blockchain protocols, as such, it has a very strong supply side. In short, many investors since its inception have been supporting the growth of the protocol. Beyond price speculation, the rising price of Ethereum over the years has indeed helped the protocol gather the proper resources to keep executing its development agenda. 

In addition, Ethereum enjoys one of the most thriving developer communities in the crypto space. Developer’s adoption is another core element to enable wide distribution of Ethereum as more use cases can be built on top of that. If we had to imagine a flywheel for crypto probably it would look like that:


Read Also: Amazon Flywheel.

Read Next: Proof-of-stakeProof-of-workBitcoinEthereumBlockchain.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"