Costs Quote by Vitalik Buterin
“Blockchains will drop search costs, causing a kind of decomposition that allows you to have markets of entities that are horizontally segregated and vertically segregated.”
About This Quote
Source Speech: Ethereum Developer Conference, 2021
Blockchain technology reduces the expense of searching for information, enabling markets to split into separate layers both across and within categories.
In simple terms: Blockchains make searching cheap, allowing layered markets.
Key Takeaway
Leverage low search costs to create niche markets.
Themes
technology
economics
decentralization
market design
Mood
optimistic
analytical
Type
strategic
insightful
When to use this quote
- building decentralized platforms
- creating specialized marketplaces
- optimizing data retrieval
- structuring supply chains
Key Concepts
information asymmetry
network effects
vertical integration
horizontal segmentation
Questions to Reflect On
- How can low search costs reshape competition?
- What risks arise from highly segmented markets?
A Different Perspective
Complex regulatory environments may hinder market segmentation.
