a16z Podcast What the Narrow Waist of the Internet Means for Innovation Today
Apr 24, 2020
Delve into the historical importance and future of protocol development in the internet landscape. Discover how the 'narrow waist' fosters innovation and the role of community-driven standards versus monopolistic approaches. Explore the rise of experimental crypto protocols and their economic engines, enabling startups to thrive. Unpack the balance between modularity and integration in tech, and learn about the significance of clear interfaces and flexibility in addressing real business challenges in the evolving digital ecosystem.
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IP's Unopinionated Nature
- The internet protocol (IP) enabled the connection of over 15 billion devices by being radically unopinionated about underlying tech and applications.
- This minimalism created a powerful economic flywheel, fostering network effects and long-term usefulness.
Origins of Narrow Waists
- Narrow waists emerge through concerted open-standard efforts or technology monopolies.
- Examples like Linux demonstrate how technological dominance creates a foundation for widespread innovation.
Bootstrapping Network Effects
- Standards emerge when enough players adopt them, creating network effects that compel wider adoption.
- Crypto might bootstrap network effects by using tokens to reward early participants and incentivize growth.