Ethereum

A protocol is a means to an end. The apps provide that end in a much more tangible way, hence they capture more value, especially in Web 3 where value is captured at the edges. But Web 3 also extremely lowers switching costs, making apps much less resilient against competitors than protocols. It's a trade-off

Web 3 shifts value capture to the edges, favoring apps over protocols. However, lower switching costs increase competition, posing a challenge for app resilience. It's a delicate balance between capturing value and staying competitive.