Networked Liquidity
| If you find WORDS helpful, Bitcoin donations are unnecessary but appreciated. Our goal is to spread and preserve Bitcoin writings for future generations. Read more. | Make a Donation |
Networked Liquidity
By Radar Relay
Posted October 7, 2017
Projects solving the chicken and egg problem
At Radar Relay we are excited for the arrival of the new Modular Trade Network (MTN) ecosystem. In fact, we created https://relayer.network to lay out our high-level vision of the future. While it is fun to dream about what the future landscape of decentralized applications will look like, we are still in the very early days. This post focuses on looking into the short term of MTNs, projects developing there, and how Radar and other relayers fit in.
Weβll be using the phrase βnetworked liquidityβ quite a bit. For those new to the term, weβve defined our perspective.
Similar to network effects, the phenomenon where a product or service gains additional value as more people use it, decentralized networked liquidity aggregates liquidity pools from projects built on Γx for enhanced utility and value.
Chicken and Egg Problem
Networked liquidity is about to face an age-old dilemma: the chicken and egg problem. For the liquidity networked by relayers to be useful it must also be functional, and for it to be functional there must be enough utility and volume to not disrupt its other utilities.