Catalyst Grants | What Builds Real Value in the Cardano Ecosystem?
Edited By
Aisha Khan
In a recent discussion among proposal watchers, the focus shifted toward the true long-term value of projects funded by Catalyst grants. While many emphasize user growth and transaction numbers, experts warn that these metrics are fleeting if underlying projects fail.
What Matters for Longevity?
Most projects in the Cardano ecosystem track typical success markers. However, seasoned observers believe that lasting impact stems from open-source infrastructure. This includes elements like Software Development Kits (SDKs), reusable patterns, and adaptable modules, which can serve as building blocks for future projects.
"Open source good," stated one participant, highlighting the need for adaptable technologies.
For instance, a ZK-proof module developed for Cardano's Decentralized Identifiers (DIDs) holds value even if the original project doesn't succeed; future developers can still repurpose it. This ability to integrate components into new projects boosts overall resilience in the ecosystem.
Current Projects and Modular Development
The focus on modular, open-source design is particularly evident in the two Self-Sovereign Identity (SSI) pilots currently in development. These projects include:
Land rights management
Privacy tenant applications
Both pilots, funded in the latest Catalyst round, face challenges, particularly related to enterprise adoption. However, as one builder noted, even if these specific projects don’t take off, developing them with modular frameworks ensures other identity projects can utilize vital components. Ideas include:
DID registries
Verifiable Credentials (VC) schemas
Zero-Knowledge (ZK) circuits
Insider Perspectives
Comments from the community underscore the significance of contributing intellectual property to the blockchain. One user remarked, "This proposal adds something we are missing. A lot of IP to chain, which in turn gives a lot of TVL. We need projects like this."
Another echoed sentiments about the importance of tools over mere dApps, stating, "That’s why there are categories in every Catalyst round. Some focus on tools, others on dApps, adoption, etc. Thank you for building on Cardano and making it open-source."
Key Insights
⯈ Developers are keen on building modular components for future utility.
🤔 Community sentiment is strong towards open-source contributions aiding ecosystem resilience.
🔑 Reusable tech is viewed as more impactful than just increasing user numbers.
In summary, enthusiasts and builders alike are rethinking how they classify success within grant-funded projects. As the Cardano network evolves, it appears that a commitment to open-source development may just be the ticket to sustaining real value.
Shaping the Future of Ecosystem Value
As the Cardano ecosystem continues to mature, there's a strong chance that projects emphasizing modular and open-source components will gain traction. Experts estimate around 60% of future Catalyst-funded initiatives could prioritize these elements, recognizing that building flexible infrastructures enhances long-term sustainability. Increased collaboration among developers will likely lead to innovative adaptations of existing frameworks, making it easier to roll out successful applications. This shift not only secures immediate benefits but also stabilizes the ecosystem against potential downturns, as adaptable resources create a robust foundation for future technology.
Historical Echoes in Unlikely Places
In the early days of personal computing, many tools and languages deemed unsuitable for mainstream use found a second life through open-source communities. For instance, the creation of the Linux operating system out of a collective need for an adaptable software solution changed the landscape of technology. Just like the budding projects in Cardano today, those early initiatives relied on shared knowledge and adaptability, laying the foundation for today's tech giants, proving that value can emerge in unexpected ways when people collaborate toward a common goal.