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Get exposed to the next generation
of infrastructure projects.

Investment thesis

Les serveurs

Technology is ready

Massive tailwind.

Stemming from the fact that basically everyone is underexposed to the asset class. With more regulator clarity, and more products to make accessible a lot of money will flow into this asset class.

 

Great set up for investors.

Fundamentally there is enormous progress at the technology level. Technology is ready to onboard hundreds of millions of users. At the same time sentiment is at a low.

The paradigm shift

Protocols will replace many existing intermediaries and enable a whole range of new behaviour that was previously not possible.

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The Problem

While most blockchains are decentralised, access to them are not.

Most applications built on top of the blockchain rely on centralised web2 tech stack such as AWS or Cloudflare.

The macro picture

Value generated on proprietary business computers and operating systems.

Value generated on closed private infrastructure such as cloud services capitalising on users's data.

Value generated on open public infrastructure. The network incentivised businesses and protocols built on top of blockchains

ciel

1980 - 2000

The PC Era

IBM, Intel, Microsoft

2000 - 2020

The Web Era

Google, Facebook, Amazon

2020 -

The Decentralisation Era

>>>. >>> >>>

Image de Shubham Dhage

Ethereum Highlights

$16 bln revenues fees since 2015

$7.4 tln stablecoin 2022 transactions

 

 

$50 bln Uniswap volume per month

$230bln Market cap

Programmatic buy back

A generational platform shift

Invest in a new generation of internet protocols

Built on open, public infrastructure, interoperable by design, scalable and with native capacity to transfer value. This new architecture has one crucial implication for investors: it's investable.

No limits to their size: these protocols are likely to become orders of magnitudes more valuable than the existing business models.

What we look for

W3index invests across infrastructure projects that are inclusive, foundational, interoperable and accountable.

Inclusive: Public infrastructure must be highly accessible and minimise exclusion. Everyone should have access to financial services.

Foundational: Public infrastructure must be open for all to build upon. Payments and ID should be highly adaptable, allowing organisations to utilise them for various purposes without needing permission.

Interoperable: Public infrastructure must be built with clear and open standards. My digital ID should work everywhere.

Accountable: Public infrastructure must be fully transparent and verifiable so it doesn't become exclusionary or isolated. The key to truly "public" lies in implementing public accountable governance.

pôle utilitaire

Analogy

Everyone should have access to roads, water, and electricity

Electricity grids, enable for various services and appliances to be built on top of it.

Standardised voltage, amperage and sockets enable various appliances to connect anywhere in a country.

Abstrait futuriste

Investing in networks

Decentralised infrastructure taps into existing Web2 demand by offering cheaper services, while unlocking new use cases.

 

Token driven networks incentivise users to deploy hardware to offer fungible resources like compute, storage, and bandwidth, and services / middleware to access such resources.

> Short term storage

> Long term storage

> Relational databases

Graph databases

Key-value tables

General purpose compute

> Cloud services

> Content delivery

Specific purpose compute

> 3D Rendering

> ZK Proofs

> Video encoding

> Machine learning

> Cross chain messaging

> Data Indexing

> RPC providers

> Oracles

Crypto Mining Farm

A utility token is used to access a particular product or service within a network ecosystem. Unlike security tokens it does not represent ownership. Utility tokens capture the value of the trust-less coordination of users within a network.

Utility work tokens

Seed

Token awards encourage participation in activities that are essential for the network's expansion

Value

The price of network tokens is matched with rising network usage. More participants and speculative capital enter as the token price climbs

Build

As the supply side expands, the value of the token is driven by speculative capital, which enables the supply side to provide services at competitive prices

Growth

With increasing end user adoption, the network's structural demand rises, generating additional demand from the supply side and a positive feedback loop that draws in more users

Fichiers organisés

Using decentralised models to build physical resource networks.

Capex Intensive:

extremely expensive proprietary equipment with vendor lock-in.

Capex Crowdsourced: token rewards incentivise individuals to deploy commoditised, off-the-shelf hardware.

Labor intensive:

operators hire technicians to install equipment.

Reduced Labor Cost:

Plug-and-play hardware simplifies the installation process.

High Maintenance Costs: Field technicians must maintain equipment. Many single points of failure.

Limited Maintenance: Hardware has warranty.

Networks have increased resilience through redundancy.

Expensive Real Estate:

Operators lease/buy placements for hardware deployments.

No Real Estate Cost:

Individuals deploy hardware at properties they own.

Opex Intensive:

Operators maintain massive back-end infrastructure.

Blockchain Automation:

Blockchains permissionlessly coordinate participants

Back-end is automated on-chain.

Local Natural Monopoly:

High costs limit competition.

Open access and Global Reach:

Anyone can build networks in parallel around

Roues Crossfit

Digital resource network analysis: Strenghts

Cost Effective.
Reduced CapEx and OpEx results in more affordable pricing for users.


Open Marketplaces Enable Price Discovery.Prices are set based on real-time availability and demand, enabling dynamic and market-driven pricing for digital resources.
 

Optimize Resource Utilization.

Make use of existing resources, minimizing energy costs and maximizing server utilization rates.
 

Democratize Access to Resources.

Provide equal access to hard-to-obtain resources, fostering a level playing field for users independent of centralized gatekeeping.


Decentralized Alternative.Offer crypto applications cloud services in a censorship-resistance and permissionless manner.

Digital resource network analysis: Weaknesses

Lack of a Moat.
Absence of a moat (on the supply and demand side) presents challenges in capturing value at the network layer

Not Yet Suitable for Mission-Critical Workloads.Early-stage networks may not be suitable for critical workloads due to limitations in reliability, performance, and scalability.

Tokens Required to use Services.

Requires acquiring tokens, adding an additional hurdle to the process. Abstraction layers aim to resolve this hurdle.

Poor User Interfaces.Lack of Web2 user interfaces limit usability. Aggregators and abstraction layers built on top of DRNs are needed for adoption

High Learning Curve.Can be complex for individuals to directly interact with the protocols.

Horloge en chiffres romains

Market timing is right.

  • Founding team designs, manufactures, tests, and distributes initial hardware

  • Token incentives are designed to balance sustainable growth and attracting supply-side.

  • Standardization of hardware spec and manufacturer approval process is defined

  • Professional hardware deployers enter

  • Product builders begin creating new apps and services around the network

  • Network achieves steady growth and begins looking for new avenues of growth

  • Venture miners purchase & deploy hardware

  • Speculative capital helps sustain the supply-side before structural demand appears.

  • Retail largely drives the growth of the supply-sid

  • Supply-side of the network reaches enterprise-ready scale

  • Businesses begin utilizing the network's services, driving structural demand

Funding in blockchain infrastructure is on the rise.

VC investment in crypto infrastructure 2022 (% growth vs 2021)

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