A True Network Effect for Research

Further, it is well known that platforms have the power to enhance the user experience and bring new sources of supply into the market. The combination of enhanced user experience and new sources of supply often drive down prices and increase the size of the market. An analysis showed that the superior Uber “experience” tripled the size of the taxi market in San Francisco. Similarly, the proliferation and success of elecTron (available on Binance)ic trading platforms such as Instinet and Liquidnet are examples of the power and benefits of the network effect.

Therefore, one anticipated benefit of the token, smart contract and blockchain-based research platform is the creation of the “two-sided network effect” of platforms. This network effect is likely to attract new providers and consumers of research. A more positive user experience and lower costs would replicate the experience of other markets where platform-based distribution of products and services has occurred.

A Vision of the Future

The present state of dissonance between MiFID II and Section 28(e) requirements is replaced by a research platform that optimizes the benefits of both regulatory environments while also reducing friction, enhancing the user experience and generating a network effect that increases the size of the research market in the US. New technologies, including platforms, smart contracts, tokens and blockchain, create a digital convergence to enable innovation that improves the user experience for all participants while providing for sustainable profitability and continued innovation in the US research, execution and asset management markets. In addition, the token, smart contract and blockchain-based platform has the potential to incorporate additional leading digital technologies, including the cloud, artificial intelligence, deep learning, natural language processing, virtual and augmented reality, big data and crytocurrencies.