Altcoin Deep Dive – The Token Utility Canvas using Bitcoin as an Example

For the analysis and evaluation of crypto currencies, classification schemes are often helpful and should be used more in the future. In the first article of the Altcoin Deep Dive series, we don’t look at a single crypto currency, but at an analysis framework from ConsenSys.

As explained in an article two weeks ago, the column „New Coins on the Block“ will now continue as Altcoin Deep Dive. We’ve talked about several token classification frameworks in the past, but today we’d like to introduce one that will be used in future Altcoin Deep Dives. This is the Token Utility Canvas from ConsenSys.

The Token Utility Canvas, or TUC for short, can be imagined as the token counterpart to the Business Model Canvas. The Business Model Canvas is a strategic framework developed by Alex Osterwalder, which has a certain popularity especially in the Lean Start-up area. The aim of the Business Model Canvas is to look at a business idea from all sides. And so one summarizes on one page different characteristics like the partners, the main activities or the underlying value promise.

Token Utility Canvas – a Business Model Canvas for the Cryptosoft Economy

Since this cryptosoft model is quite well known, ConsenSys are not the only ones who want to use this model in the cryptosoft area. ConsenSys criticize that the Business Model Canvas focuses on a classical business. However, token-based projects should capture the interaction of different stakeholders with the tokens. You therefore propose the Token Utility Canvas, which has this structure:

On the one hand, the token utility canvas analyzes the relationship between the value proposition of a decentralized platform and the functions of the token. In addition to this relationship, it must be noted how different market participants interact with the tokens.

Knowledge of the desired behavior of the individual stakeholders or the behavior desired by them forms, so to speak, the core of this analysis method. Why? Because this desired behavior determines the value proposition of the decentralized platform.

In order to capture the connection between market participants, tokens and value propositions more precisely, ConsenSys proposes a more detailed analysis of user behavior. This can be done in tabular form. In comparison to ConsenSys, the order of columns has been slightly adjusted here in order to do justice to the train of thought in stakeholder analysis:

Token Utility Canvas using Bitcoin as an crypto trader example

So far, so abstract. Let us therefore go through a crypto trader 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 would not run.

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.