Token Utility Canvas using Bitcoin as an example

So far, so abstract. Let us therefore go through an example together. Much of this section is known to the reader of our page and is only repeated here once to explain the thinking within the framework of the Token Utility Canvas.

We start with the stakeholder analysis and focus on a “Lightning-free” Bitcoin ecosystem. With Lightning Nodes, which are responsible for maintaining payment channels, there would be another stakeholder.

Furthermore, we only look at the core of the ecosystem, without which Bitcoin trader would not run:

Bitcoin trader Desired behaviour Priority Incentive Possible token solution Need for tokens, Miner Create new blocks, verify transactions high financial Receive newly generated coins, read the Bitcoin trader review and transaction fees, both in BTC/Satoshi high Node-Hoster Management of the blockchain, verification of transactions highly ideal* none necessary none Developers Develop clients that implement the Bitcoin protocol Medium Ideally None None User use of Store of value and Medium of exchange highly ideal Coins that can be managed by no third party controllable Keypairs high.

First of all, it can be stressed that all other stakeholder groups ultimately work for users. The management of own funds without the need of a middleman and without the possibility of censorship is one of Bitcoin’s goals. A second is that no central source can change the amount of all Bitcoins, making arbitrary inflation impossible.

All other stakeholders – miners, node hosts and developers – support Bitcoins for this purpose. There is therefore no incentive for users other than the benefits and opportunities of using the system.

Users also recognize the need for a token: the funds must be countable. In order to avoid central control, an ecosystem must be created that administers decentrally the total amount of all tokens as well as the ownership of the individual users. This is done via a decentralized protocol, which is implemented by the developers in the form of Bitcoin clients. After all, the Bitcoin client is the software basis for both the miners and the full nodes.

Incentive – Do crypto trader always have to be financial?

While Full Nodes and Developer hosters receive no financial incentive, crypto trader benefit from their work according to: They receive transaction fees from users who want to send funds, as well as newly generated tokens that follow a clearly defined emission line according to the Bitcoin protocol. This definition, which is stored on all Bitcoin clients, limits the number of Bitcoins and prevents arbitrary inflation. The financial incentive is necessary because the production of a new block is a computationally and thus energy-intensive process. Miners therefore need a compensation of the electricity costs.

Developers and node-hosters do not receive an incentive as defined in the protocol, but are centrally involved in reaching a consensus. By developing a new client, the developer can influence the consensus and the interpretation of the protocol. Node hosters can in turn exert a strong influence by using such a client. This was demonstrated very well last year with the User Activated Soft Fork (UASF).