The Evolution of Aggregation Theory
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GM, Kram and I are taking a fresh look at the aggregation theory, tailoring it to the unique landscape of crypto.
We believe that as the industry matures and crypto aggregators polish their offerings, they'll outpace individual dApps, and history will repeat itself. Just like aggregators dominated in Web2, we expect the same pattern to unfold in crypto and in a quicker time frame.
However, we realize that in reality, crypto aggregators do not dominate the crypto space as their web2 counterparties dominate web2. In fact, an aggregator has yet to overtake a niche in crypto despite being able to offer more options to users and a seamless user experience.
According to us, the reasons behind this can be understood due to the difference in the characteristics of aggregators in Web2 Vs. Crypto and that’s exactly what we dive deeper into.
Aggregation in crypto, specifically in the context of decentralized finance (DeFi), differs from aggregation in Web2 in several critical aspects since the foundational characteristics of crypto are different from those of the internet.
To learn more about how the three characteristics of aggregators laid out by Ben Thompson can be fine-tuned for crypto, read our latest research article: Crypto Aggregation Theory — Pt1. The Evolution of Aggregation Theory
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