Crypto refers to the blockchains and the tokens and applications on the blockchain. Following components are included:
Blockchain(s) – are distributed databases, which solve the “trust issue” by cryptography. “Trust issue” refers to potential users, which would like to manipulate the contents of this database. Using cryptography algorithms makes manipulations very costly and protects the integrity of the data Native blockchain tokens – the best known are the Bitcoin and Ethereum. These tokens are used to pay the transaction fees on the underlying platforms. They have additional utility too, like mean of payment and store of value Created blockchain tokens – these are tokens, which users create on top of the blockchain. These tokens have a utility, like mean of payment on a specific application, etc Applications, or smart contracts – these are the software programs, which are running on the blockchain. These programs have their data, all changes in this data are cryptographically signed and stored on the blockchain. This allows use cases like crypto lending or exchange.
Crypto allows new business models, where the middlemen will be removed. Following key business models exists:
Traditional business models, they have a lot of manual processing. Scale effect was the key success factor for these businesses Internet business models or Digital Business Models are based on centralized data processing. Network effects were the key success factor for these businesses. They will disintermediate traditional business models Crypto Business Models or Blockchain Business Models are based on distributed data processing and network effects. They will disintermediate Internet Business Models