2025-11-15

Prototyping as a Tool for Understanding Markets

ProductFounderStartupsPrototypingStrategy

When you don’t know what a market wants, the best move is not analysis — it’s prototyping. Research feels rigorous, but building exposes constraints that slides and models hide.

Over the past two years I built three distinct prototypes across different domains:

  • AI assurance (Assurenest AI)
  • GameFi/Web3 (HuskyChain)
  • Quant analytics (Factor Lens)

These weren't products in search of exits; they were experiments in search of truth.


What Prototyping Reveals

Prototypes reveal four things faster than any interview, deck, or report:

  1. User constraints
    Users don’t behave the way founders imagine.
    Assurenest AI revealed that AI adoption inside SMEs is gated by compliance and confidence, not just productivity.

  2. Technical constraints
    Cloud reality forced decisions: SSE vs WebSockets, Firebase vs Cloud Run, cold starts vs cost, wallet-last onboarding for HuskyChain, etc.

  3. Economic constraints
    Tokenomics in Web3 and factor models in quant trading both exposed the same rule: incentives determine behavior.

  4. Compliance constraints
    AI assurance lives next to regulation; GameFi lives next to financial incentives; quant lives next to risk.
    Compliance shapes products more than features do.

Ideas don’t surface these constraints — implementation does.


Why Prototypes > Decks

A deck tries to persuade.
A prototype tries to learn.

Decks optimize for narrative.
Prototypes optimize for reality.

A prototype forces contact with:

  • actual UX
  • actual data
  • actual infrastructure
  • actual economics
  • actual users (or players)
  • actual regulation or compliance thinking

Founders underestimate how much discovery happens through implementation.


The Hidden Benefits

1. Prototypes Expose Incentives

HuskyChain made this visible. Token design was not financial — it was incentive design. Tiers, NFTs, referrals, and staking all changed user behavior more than “features”.

2. Prototypes Compress Research

Factor Lens turned crypto factor modeling from a theoretical exercise into dashboards and simulations. Once results were visual, research accelerated.

Visualization is a research tool, not a finishing step.

3. Prototypes Surface Compliance Early

Assurenest AI forced questions normally asked at Series A or pre-audit:

  • What counts as hallucination?
  • How do you log bias?
  • Who reviews outputs?
  • What is risk?
  • Who is accountable?

Compliance is not a feature — it is a boundary condition.


Prototypes Are Filters

Each prototype answered key questions:

  • Assurenest AI: Is AI assurance a technical problem or a compliance problem? (Answer: both.)
  • HuskyChain: Can Web3 onboard non-crypto users without wallets? (Answer: yes, Telegram proves it.)
  • Factor Lens: Are factor models in crypto extractable or just academic? (Answer: partial signal, needs regimes.)

These answers came from building, not theorizing.


Outcomes That Still Count as Wins

Prototypes do not need to become products.
They can produce:

  • pivots
  • insights
  • frameworks
  • clarity
  • constraints
  • proof of skill
  • proof of execution
  • technical conviction
  • investor signal
  • visa evidence
  • new hypotheses

A “failed” prototype can be intellectually profitable.


Closing Thoughts

Prototyping is not the path to a product; it is the path to understanding. Whether the outcome is a product, a pivot, or shelving the idea, the prototype still pays for itself in insight.

The most valuable part of the past two years wasn’t the code — it was the learning: how AI behaves under audit, how incentives change player behavior, and how data becomes research when it becomes visible.

Prototypes are where markets stop being theory and start being constraints.