In this blog post I’m gonna write down my opinion for – Why most AI and Crypto Start-Ups Will FAIL! It is about the strategy – it is about time, effort and attention arbitrage.
Software Development Strategy
In the world of software development, the creation of new software often builds upon existing software and technologies. This is commonly referred to as “building on top of existing software” or “leveraging existing software.” There are several ways in which software can be built upon previous software.
- Developers frequently use existing libraries and frameworks to simplify their work and take advantage of pre-written code. These libraries and frameworks provide various functionalities, allowing developers to focus on building specific features without reinventing the wheel.
- APIs enable different software applications to communicate and interact with each other. By using APIs, developers can integrate features and services from external software into their applications, saving time and effort.
- Use Open-source software. It is freely available code that can be used, modified, and distributed by anyone and feedback fixes may come from others. Many software projects rely on open-source components as building blocks to create new applications.
- Developers often design software in a modular way, breaking it down into smaller, manageable pieces. These modules can be reused in different projects, facilitating the development process.
- Programming languages often have extensive ecosystems with various tools and libraries that support and enhance software development.
- Many times, new software is created by modifying and extending existing software. This process is known as “forking,” where a new version or variant of the original software is developed with added features or improvements.
If all above is applied – maybe a Proof of Concept will not entirely go to waste.
AI Trend
I see people making AI tools that sit on top of openAI. In best case scenario – they use the same framework and a library that does the API call. After that – each new product needs to acquire from the start – the users that are going to interact with it. New start-ups focus on catchy marketing words and angel inestments – instead of actual needs of the users.
Crypto Trend
Bitcoin was release 2009. It acquired some users and attention. Then Ethereum was release 2014 and with its advancement – many more coins and tokens. All of their problem is the same. Any new Token or Coin needs to get anew – the attention and the users. In the same time – a Lightening network – that sits on top of the Layer 1 Bitcoin – may benefit from the existing user base and ecosystem of applications, tools and services. A smart opinion in my opinion would be to create a software the integrates with layer 1 or layer 2 of bitcoin, because of the user base. This is not the case for all the copycats – that needs to onboard new users to their fresh new thing.
Example – Meta
Large technology companies like Facebook (now Meta Platforms, Inc.) continuously innovate and expand their services. They are all build on top of their existing users database table. If they may acquire or integrate features from other companies into their platforms They extend their software for the existing users, not trying from scratch. This enhances the user experience and stay competitive in the market. The same strategy was used for Threads the Twitter’s copycat.