#0001: Constrain Drives Innovation, hence valuation

The correlation between constrain and valuation.

Often an arbitrary term, the purpose of “constrain” doesn’t matter as much as the existence of it. Having a problem to solve, avoid, dismiss gives us a situation to weigh & solve.

When we try to problem solve, we either push through it or push around it.

Same with security, fraud and forgery.

Not that there isn’t any innovation in other communities, but those are where the impact hits the biggest. Because it’s likely illegal, and if it is illegal - money is likely to be made, lives will be changed.

In every industry, there’s a benchmark, with that benchmark it creates a certainty that majority will be using it, making most of the users vulnerable to minor changes.

There’s a certainty that’s A LOT of people working to find a solve around this, because the reward is high.

Most in crypto recommend using 2FA.

The availability of constrain creates a belief that you are safe, and with majority of the users using it.

The constrain: Access to your email + phone.
The solve: Calling your cell carrier to swap over to a new sim, access to reset passwords.

For most problem solvers, the equation is still solve x for y.
The variable changes, but it’s still still 1 equation in play.

We just have to find a way around it.

Same with general fraud (identity, offers, financial)

What’s worth mentioning though is art forgery, there are a lot of ways for art forgery.
Create a piece and impersonate a famous artist. (Easily caught with the internet)

So here’s a solve I found in a book..

  • Create an identity around a certain time period

  • reuse/retool old paintings into a certain style

  • valuation comes from age and quality - easily replicate for lower-ticket ones.

And if you think about it, most valuation come from a few variables.

Same with constrains.

And as long as you understand what are the factors that affect valuation, all you need to solve is an equation.