Two-Sided Market

Two-Sided Markets occur when two or more distinct user groups interact through an intermediary platform, refered to as a multi-sided platform (MSP). Typically, a MSP will minimize duplication and transaction costs while enabling same-side or cross-side network effects. In a crypto context, understanding the notion of a two-sided market is helpful for understanding certain projects’ buisness strategy, which can involve creating a protocol or organization serving as an MSP. AirBnB, which markets to both renters and listers and whose utility is magnified by size of both user groups, is an example of an MVP serving a two-sided market.