Blockchains are most useful as a tool to innovate in regulated industries. 

You build a parallel state onchain that subsumes the function of the agency you are competing with.

Legitimacy comes from millions democratically opting into the new system. Capital to defeat the old system comes from asset appreciation.

In this model, Bitcoin competes with the Fed and Ethereum competes with the SEC.

This is *different* from the mid-2000s era startup playbook, which assumes your competitors are companies.

The new playbook recognizes that the primary obstacles are DC-affiliated actors around the world. New tactics are thus needed.

Examples:

- Fed → digital gold
- SEC → onchain issuance
- Harvard → onchain credentials
- Passports → onchain identity
- Newspapers → cryptographically verifiable truth
- Regulators → onchain digitally signed reviews and bans from online marketplaces

This is how one might actually build new institutions.

https://twitter.com/backseats_eth/status/1636813486276657158?s=20