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a16z Podcast | Trends in Cryptocurrencies
14 segments available
The internet, believe it or not, was just the beginning. Yes, it spawned an incredible number of uses (some unexpected), from marketplaces and commerce to publishing and social networks... but that’s all been built with old models of funding and coordination. Now, as we enter a new phase of blockchain-enabled innovation -- decentralized, distributed, crowdfunded -- we’re finally bringing capitalism to open source: Smart people can come together in new ways, to build new things. In this brief discussion from a16z Summit November 2017, founder and CEO at Protocol Labs Juan Benet and founder and CEO of Polychain Capital Olaf-Carlson Wee -- both of whom have appeared on the a16z Podcast for more in-depth conversations -- chat with general partner Chris Dixon to summarize the big picture on crypto, going beyond the buzz around ICOs to the golden age of protocols.
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Introduction to Crypto Trends
In this segment, Chris Dixon introduces the podcast episode featuring Juan Benet and Olaf Carlson-Wee, discussing the overarching trends in cryptocurrencies. The conversation aims to provide a comprehensive overview of the crypto landscape, moving beyond the hype of ICOs to explore the foundational protocols driving innovation.
"hi and welcome to the a 16z podcast we've talked a lot about crypto on the podcast you can check out the blockchain and Bitcoin tag on our website for more episodes but this conversation moderated by ..."
Juan Benet's Journey into Crypto
Juan Benet shares his personal journey into the world of cryptocurrencies, starting with his discovery of Bitcoin in 2011. He discusses his early involvement with Coinbase and the founding of Protocol Labs, emphasizing the importance of decentralized protocols and the development of projects like IPFS and Filecoin.
"2017 can you tell us how you first got into all this stuff so in June 2011 I found out about Bitcoin and just went down the veritable rabbit hole which is something people say in this space where once..."
Decentralized Storage Revolution
Benet explains the concept of Filecoin as a decentralized storage network that utilizes a token to facilitate exchanges between storage providers and clients. He highlights the advantages of decentralized systems over traditional cloud storage solutions, drawing parallels to platforms like Airbnb.
"invest in one I studied the Soviet systems at Stanford and at the time there was this peer-to-peer winter innocence so later on and around 2013 12 and 13 I started working on a distributed file system..."
The Case for Decentralization
In this segment, Benet argues for the necessity of decentralized protocols, addressing misconceptions about their purpose. He discusses the security implications of relying on centralized entities for data storage and the importance of creating verifiable systems that empower users.
"know we have these amazing super computers in our pockets our internet connected and great search engines and they're free and then sometimes people say oh it's sort of for government you know to get ..."
Peer-to-Peer Marketplaces and Governance
The conversation shifts to the potential of transforming networks into peer-to-peer marketplaces. Benet and Carlson-Wee discuss the implications of decentralized governance and the need for robust systems that allow users to control protocols, enhancing security and efficiency.
"precisely like the right way of to look at it an Airbnb for storage where it's mediated by a token the other thing I would say is decentralization is an important security feature that right now we ar..."
Building the Infrastructure for Web 3.0
The discussion focuses on the current state of infrastructure development for decentralized applications. Benet emphasizes the importance of establishing foundational technologies that will enable consumer-facing applications in the future, comparing it to the early days of the internet.
"there's no company you can really back per say to get exposure directly to that protocol and broadly I think part of what one is referring to is a larger trend which is turning networks into peer-to-p..."
The Future of Consumer Apps
Benet speculates on the emergence of consumer applications built on decentralized protocols. He discusses the need for a new technology stack that supports peer-to-peer applications and the potential for mainstream adoption as infrastructure improves.
"for their own right not because they're in this different world later like maybe late 2018 or 2019 so I think this this period is entirely about or mostly focused on building out the infrastructure to..."
Scaling Challenges in Decentralized Systems
The segment addresses the scaling challenges faced by decentralized systems like Ethereum. Benet and Carlson-Wee discuss various solutions being explored to improve transaction throughput and the importance of scaling for the future of blockchain technology.
"like that so it's a point what are some of the projects that you're tracking closely anybody know a lot of these are mostly developer facing they're not really meant to be used by regular people they'..."
The ICO Landscape
The conversation shifts to Initial Coin Offerings (ICOs), exploring their potential and pitfalls. Benet highlights the rapid capital raising capabilities of ICOs while acknowledging the noise and scams that have emerged in the space, emphasizing the need for rigorous evaluation of projects.
"better which i think is very similar to what happened 195 to 2010 sort of on the infrastructure side of the kind of web 2.0 world right yeah I think it's exactly right the cloud went through a whole b..."
Governance in Blockchain Protocols
Benet and Carlson-Wee discuss the importance of governance in blockchain protocols. They highlight the need for clear decision-making processes and the potential for on-chain governance systems to enhance protocol evolution and security.
"interesting so this stands for initial coin offering and this is the concept that when I want to launch a new cryptocurrency protocol or new token built on top of one of these smart contract systems l..."
The Need for Strong Governance Structures
The segment delves deeper into the challenges of governance in decentralized systems. The speakers emphasize the necessity of establishing strong governance frameworks to prevent conflicts and ensure the effective evolution of protocols.
"really solid project and one that's not and that's what creates a whole bunch of noise the moment that a lot of projects were able to race a ton of capital very easily then that attracts a whole bunch..."
Harnessing Incentives for Better Outcomes
Benet discusses the potential of harnessing incentive structures within decentralized systems to create more efficient and useful applications. He highlights the importance of aligning incentives to drive positive outcomes in the blockchain space.
"these protocols so this is the idea of you know how do you decide what to do with bitcoins the protocol so once this thing is live and running it's like a live software project live financial system a..."
The Future of Decentralized Applications
The conversation explores the future of decentralized applications and the potential for blockchain technology to reshape power structures on the internet. Benet and Carlson-Wee discuss the implications of these changes for freedom and censorship.
"we'll have close to zero impact on the actual network so this is a huge holy war around people not agreeing on some very basic facts and so absolutely we need really strong governance structures I thi..."
Real-World Applications of Decentralization
In the concluding segment, Benet shares examples of real-world applications of decentralized technology, including its use in anti-censorship efforts. The discussion highlights the growing relevance of decentralized systems in addressing contemporary challenges.
"have good ideas around this you should build something just explain how much electricity bitcoin mining uses this is exactly like what one is trying to do here is is take that and make it into somethi..."