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Unique P2P Startup Problems
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Joined 2024.01.30
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Unique P2P Startup Problems

I am currently exploring on how to build good peer-to-peer startups. And be aware, I specifically said P2P "startups" and not P2P "apps".

Apps like Nostr, PayJoin, or the Bitcoin Lightning Network are being built and are actively used by thousands of users all over the world.
But they all have something in common: They are developed with grants, sponsorships, and donations and the once that received "investments" often do not have a clear path to profit. They all fail to create direct revenue for their company and I argue that this is a flaw of P2P.

"But Severin! It's good that Bitcoin has no centralized company that takes a cut of each payment. This is the power of P2P! No rent seekers that extract value without giving anything back!"

Yes, I agree and I am all for it. This creates a problem though.

Building P2P apps is technically a hard challenge but software like the Holepunch stack do simplify this process. Many other P2P software stacks are in the making so I expect an explosion of such apps in the coming years.

All good so far. Building P2P apps is going to be "easy". But can this be turned into actual profitable startups that change the world?

  • Understand how P2P app can be built in detail.

  • Understand how to bootstrap a P2P system. The problem is similar to launching a new facebook. Aka, it's quite boring being the only user.

  • How to reduce UX friction and still keep things decentralized and secure.

  • Find a good problem/market. Even though P2P sounds great, it's not obvious how to create a business with it. It's decentralized remember? You can't just take a cut of the payment like in a centralized service.