synapse_soap

App devs can build any app they want on top of these web3 protocols, but their apps may have to pay a fee to interact with those protocols. The fee incentivizes the actors that host (run nodes for) the protocol. That fee may or may not be passed on to users. It's a bit like paying a microtransaction for certain HTTP requests. The amount of times that a user has to pay a fee can be minimized through various pieces of technology like rollups (read about zk rollups and optimistic rollups if you're curious).

Google Docs - not just a UX, built on the Google ecosystem with its existing network of users and massive amounts of data

TikTok - not just a UX, but a massive social network, again with lots of data.

In a decentralized world, there will be a decentralized social network like TikTok. The UX would interact with that social network; it wouldn't create the social network itself. To give another example, it's as if Facebook's social network was open to anyone to build a UX on top of and interact with. Much lower barrier to entry.

It's true that there's currently some regulatory arbitrage, but it's more than that. Our financial systems and products have been slow to change and have unnecessary friction and rent-seeking. Companies with competencies in fintech, insurtech, and web3 are building newer systems that provide a better consumer experience.

I think the focus on data openness is overly simplistic. Blockchains like Ethereum, Solana, and Tezos are attracting a lot of brainpower and capital. This is occurring because of price action, for sure, but also because of their ability to allow actors to interact with each other in a way that minimizes the amount of trust required from any single actor in the system. They do this by distributing trust among different actors in the system via an economic game that incentivizes actors to cooperate with the rules defined by the protocol.

To put it another way, you're using software, cryptography, and game theory to minimize (not replace) the need for rules and rent-seeking middleman, banks for example. The promise is that this technology will mostly (not completely) replace these middlemen, thereby cutting down on the negative impacts of monopolies, and will democratize the creation and use of financial assets.

Some initial use cases:

Lending and borrowing. Solend automatically matches borrowers and lenders, allowing lenders to earn interest on any asset on the Solana blockchain. You can currently earn 6% on USD-backed stablecoins, and withdraw at any time. Compare that to your current checking or savings account.

Purchasing and creating ETFs. TokenSets allows you to create a financial instrument, called a Set, backed by any tokens you want, in any allocation. The protocol will automatically buy/sell the underlying assets for you. Then, that Set can be traded as well. The possibilities are endless.

Distributed wireless infrastructure. Helium Network sells wireless routers, and distributes rewards to routers that provide coverage to the network. Tokens are used to purchase network bandwidth. They have nearly 400K hotspots worldwide.

Some more links if you're interested:

https://www.preethikasireddy.com/post/what-do-we-mean-by-blo...

https://www.simplilearn.com/tutorials/blockchain-tutorial/wh...

https://seekingalpha.com/article/4468835-solend-defi-lending...

https://www.tokensets.com/

https://www.helium.com/