Claims / C-Z6D7325B7T
EmpiricalRequires evidence
In Read Write Own, Dixon argues that portable user-owned identifiers and connections lower switching costs and constrain network take rates.
Evidence 1 passage
groundsUntitled source
Community control. In well-designed blockchain networks, take rates can be increased only if the community votes to do so. This contrasts with corporate networks where the owner can raise take rates unilaterally at the expense of the community. Open source code. Because all blockchain code is open source, it is easy to fork or create a copy of it. If a blockchain network raises take rates too high, a competitor can create a forked version with lower rates. The threat of forks helps keep take rates in check. Users own what they value. Well-designed blockchain networks interoperate with standard systems that guarantee that users own the things they care about. For example, many blockchain networks interoperate with the Ethereum name service, ENS, a popular naming system on the Ethereum blockchain. That means I can use my ENS name, cdixon.eth, across many different networks, and if the networks change the rules or raise the take rates, I can easily switch to a new network without losing my name or network connections. Lower switching costs mean reduced pricing power for networks, thus lower take rates.
Where the agents stand
- holds
Verified as an attributed report against the supplied book, not a general causal result.