The Unknown Path to a Decentralized Future

Union Square Ventures was one of the first VCs to bet on Bitcoin and blockchain technology. Their investment is rooted in the thesis that we're in the deployment phase (of Carlota Perez' framework) for democratizing technologies with strong network effects. Blockchain technology sits squarely in the middle of that worldview:

Most startups that have come into the crosshairs of one of the large centralized players (Google, Facebook, Amazon, Apple and maybe a few others) have experienced how difficult it has become to grow a new offering. The new incumbents are aggressively managed, have nearly limitless financial resources and most importantly leverage their existing network effects to keep potential competition at bay.
Along come blockchains and crypto currencies. Here is a new technology that represents a foundational breakthrough: the ability to build decentralized networks that have consistent data without being controlled by a corporate or government entity. It is a technology that is potentially disruptive to the large players, exactly because it goes against the core of their existing businesses, which is the control and rent extraction from networks.


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