3 Secrets To Blur's Success | #28

WhatsApp vs Skype and Introduction to Blur

The section discusses the rise of WhatsApp over Skype in international messaging and video calling. It also introduces Blur, a project founded by Pac-Man that aims to fulfill the needs of professional traders who are not satisfied with OpenC.

WhatsApp vs Skype

• Skype was the leader in international messaging and video calling with a team of hundreds of engineers.

• WhatsApp came along with less than 10 engineers and out-executed Skype by focusing on what people were actually using it for - messaging across countries.

Introduction to Blur

• Blur is a project founded by Pac-Man that aims to fulfill the needs of professional traders who are not satisfied with OpenC.

• Blur owns 62% of daily trading volume in the NFT space against 19% for OpenC.

Secret #1 - Find Biggest Pain Point

This section discusses secret #1, which is finding the biggest pain point of owning the majority market share. It uses Pac-Man's approach with Blur as an example.

• Pac-Man looked at OpenC and identified that no professional NFT trader can work with it. He created Blur, which makes it easy for floor sweeping, has no creator royalties, is fast, and has low gas fees.

• Pac-Man used Charlie Manger's Geico method to identify one main thing that makes all the money in this marketplace and focused on addressing this pain point.

Takeaways from Episode

This section discusses the takeaways from the episode, including going after monopolies and using a methodology that can be applied to all markets.

• Going after monopolies is a strong takeaway. Identify where they suck or are lazy, address user frustration, and capture significant market shares.

• There is always an oligopoly or some monopoly in any market. Most of the time, there's a huge pain point because they're lazy or greedy. Focus on this pain point to capture significant market shares.

• Pac-Man's approach with Blur has similarities with Silicon Valley startups and case studies such as Peter Thiel's framework for becoming a monopoly by being 10x faster and 10x better than competitors.

The transcript was in English so I have provided my responses in English language using markdown format.

Building a Successful Startup

The speaker discusses the importance of building a product that is 10x better and faster than competitors. They emphasize the need to focus on solving a specific pain point rather than trying to do everything at once.

Key Points:

• Start by solving a specific problem exceptionally well, even if it means not having all the features of your competitors.

• Focus on growth before worrying about profitability.

• Use incentives such as free products or money to attract users and investors.

• To achieve success quickly, operate in an enormous total addressable market and aim for winner-takes-all scenarios.

Using Incentives to Grow Your Business

The speaker explains how they used incentives such as free products and money to grow their startup quickly. They discuss how this strategy can be effective in web 3 environments where companies can create their own currencies.

Key Points:

• Blur used two types of incentives to attract users and investors: offering free products with no fees or royalties, and providing airdrops of their own currency.

• By creating their own currency, companies can use it as an incentive for people to join their platform or invest in them.

• This strategy is similar to "fake it until you make it" or "bribe it until you make it," where companies offer incentives until they have enough genuine activity on their platform.

Blitz Scaling Your Startup

The speaker discusses the concept of blitz scaling, which involves growing a startup quickly in an enormous total addressable market. They explain the checklist for blitz scaling and how it can be effective in winner-takes-all scenarios.

Key Points:

• To blitz scale, a startup needs to operate in an enormous total addressable market and aim for winner-takes-all scenarios.

• The checklist for blitz scaling includes having a clear strategy, focusing on growth over profitability, and being willing to take risks.

• Blitz scaling can be effective in web 3 environments where companies can create their own currencies and use them as incentives for people to join their platform or invest in them.

Blitz Scaling

In this section, the speakers discuss the concept of blitz scaling and its importance in growing a business quickly.

What is Blitz Scaling?

• Blitz scaling means raising a lot of money and spending it quickly to grow a business fast.

• This approach can be inefficient because it involves hiring many managers and growing through different stages.

• The dream of profitability is supported by blitz scaling and spending on customers, as seen with Amazon's profit and loss statement.

Examples of Blitz Scaling in Web 3.0

• Blur was one of the first examples of blitz scaling in web 3.0, while Coinbase had slow but consistent growth.

• There are protocols for growing fast, such as exchanges, but most do not have investors like Binance.

• It remains to be seen how Binance will transition from blitz scaling to making profits once they achieve total market dominance.

VC Ponzis

• Blitz scaling is linked to raising funds, which can trap founders into a game where they become products for VCs to raise money.

• As a founder, you may get trapped into this game where you're just a product for VCs to raise money.

CZ's Origin Story

• CZ already had some money when he started Binance after understanding crypto and Bitcoin.

VC Funding and Blitzscaling in Crypto

In this section, the speaker discusses the unique methodology of VC funding and how it is used to scale aggressively worldwide. They also explore how blitzscaling could work in crypto, depending on whether one believes in a centralized or decentralized vision for crypto.

VC Funding Methodology

• VC funding asks companies to have transparency, but it can be hard to know about the methodology.

• Companies that receive VC funding are scaling super aggressively worldwide.

• The main difference between traditional companies and those backed by VCs is that traditional companies may struggle with monetization, while VCs often suggest ads as a solution.

Blitzscaling in Crypto

• It's unclear how blitzscaling would work in crypto, as it depends on whether one believes in a centralized or decentralized vision for crypto.

• Some communities do not accept being backed by VCs, but NFT traders are more focused on flipping NFTs than on philosophy or freedom.

Decentralized vs Centralized Vision for Crypto

This section explores the differences between a decentralized and centralized vision for crypto and how they relate to being backed by VCs.

Decentralized Vision for Crypto

• Those who believe in a decentralized vision for crypto may prefer protocols like RV and Compound.

• Being backed by VCs may not be accepted within some communities that prioritize decentralization.

Centralized Vision for Crypto

• Those who believe in a centralized version of crypto may prefer platforms like Binance OpenC or those that are VC-funded.

• For some communities, being backed by VCs is not an issue.

Case Study of Blitzscaling - Blur Six Months One Billion

This section provides a case study of how web 2.0 scaling strategies can be applied to web 3.0 technologies, using the example of Blur Six Months One Billion.

• Blur Six Months One Billion is an interesting case study of how aggressive blitzscaling with a focus on one big pain point and community orientation can create a huge company.

• The company was able to narrow down its focus and exploit a pain point while also being community-driven.

• This approach could be applied to web 3.0 technologies instead of just being cute, nice, and community-driven.

Three Secrets for Success in Web 3.0

In this section, the speaker shares three secrets for success in web 3.0.

Secret #1 - Solve the Biggest Pain Point

• Find the biggest pain point or monopoly in your market and solve it.

• Don't worry about anything else; just solve the pain point.

Secret #2 - Fake It Until You Make It

• In web 2.0, it's hard to pay people with real money (fiat currencies), but in web 3.0, you can bribe people with your own token.

• Use your token to incentivize people to talk about your project or interact with your protocols.

Secret #3 - Go Fast and Go Big

• Implement aggressive scaling strategies from web 2.0 into web 3.0 technologies.

• Don't be afraid to go big or go home.

Closing Words

In this final section, the speaker encourages listeners to keep building cool products and not get bogged down by losses or toxic behavior within the crypto community.

• Keep building cool products every day.

• Don't cry over losses; double down and create real value.

• Avoid toxic behavior within the crypto community.