All Segments
a16z Podcast | Beyond Bitcoin -- The Blockchain
20 segments available
It’s well understood that bitcoin can be used to buy and sell things/services, and the ecosystem of people accepting the cryptocurrency as payment is expanding. But what else can we use the underlying protocol for? How can we expand the same system that enables bitcoin-the-currency to flow and transactions to be recorded? This discussion (from the a16z Academic Roundtable 2014) examines that question, and answers why the currency is just the beginning of the story when it comes to this technology. You can watch video of the entire discussion here: a16z.com/2014/10/24/the-bitcoin-network-effect/
Segments Timeline
Introduction to Blockchain Beyond Bitcoin
In this segment, Michael Copeland introduces the a16z podcast and sets the stage for a discussion on Bitcoin's potential beyond being a digital currency. The conversation features experts Ed Felten, Matthew Greene, and Chris Dixon, who explore the implications of blockchain technology and its future applications.
"welcome to the a 16z podcast I'm Michael Copeland you're about to hear a discussion that was part of our 2014 academic round table this discussion focuses on Bitcoin and how it can be extended beyond ..."
The Concept of Distributed Autonomous Companies
Ed Felten discusses the idea of distributed autonomous companies, explaining how they relate to blockchain technology. He emphasizes the importance of viewing these entities as mechanisms rather than traditional companies or contracts, highlighting their potential to operate autonomously and transact funds, while questioning the limitations of such capabilities.
"with a question from the audience and Ed Felten responds a question number one though I guess so there are people who say bitcoin is really blockchain 1.0 with blockchain 2.0 you could do what are ref..."
Bitcoin vs. Altcoins: The Network Effect
The conversation shifts to the competitive landscape of cryptocurrencies, where Felten discusses the network effect of Bitcoin and the challenges faced by new altcoins. He argues that for a new coin to succeed, it must offer unique features that Bitcoin does not provide, and reflects on the historical context of novelty altcoins and their rapid decline.
"actually know where they are they may be they may be more limited than we realize that different question but then you are probably alluding to this given that you're looking at new capabilities of Bi..."
Bitcoin's Impact on Taxation and Regulation
The discussion delves into the implications of Bitcoin on taxation and government regulation. The speakers explore how Bitcoin could facilitate off-the-books transactions and the challenges it poses to traditional taxation methods, while also considering the government's ability to adapt to these changes.
"technology far from it yeah thanks so I have a question that really segways want from what the earlier discussion about regulation was about you know it seems to me that there's a couple of features o..."
The Role of Government in Regulating Bitcoin
In this segment, the speakers discuss the potential for government intervention in the Bitcoin ecosystem. They highlight existing regulatory efforts, such as New York's proposed bit license, and the cultural clash between traditional financial regulation and the decentralized nature of Bitcoin.
"doing business and I would appreciate it if both of you gentlemen could comment on that okay um all right I guess I'll go first the right so you alluded to the underground economy in the way that peop..."
Regulatory Challenges for Bitcoin
The conversation shifts to the regulatory landscape surrounding Bitcoin, particularly the New York Department of Financial Services' proposed 'bit license.' This segment explores the clash between traditional financial regulations and the innovative nature of Bitcoin, emphasizing the complexities faced by entrepreneurs in the cryptocurrency space.
"follow-up questions actually so if Bitcoin continues to grow do you think the Fed might actually try to disrupt it at some point at some at some points and if it did try to disrupt it could you specul..."
Government's Wait-and-See Approach
In this segment, the speakers analyze the federal government's cautious approach to Bitcoin regulation. They discuss how traditional finance views Bitcoin as a bubble, and the potential for increased scrutiny as the cryptocurrency becomes more established. The conversation highlights the balance between regulation and innovation.
"that's number one um thus far though I think many other aspects of government have taken a wait-and-see approach and I think at the federal level they've done a pretty good job of getting what they ne..."
Scarcity and Network Effects in Cryptocurrencies
This segment delves into the concept of scarcity in cryptocurrencies, comparing it to traditional currencies and precious metals. The discussion focuses on the network effect, suggesting that only a few cryptocurrencies, like Bitcoin, may thrive due to their established user base and features that meet market demands.
"currencies comes today comes from the number of countries it's a zeroth-order right and then this scarcity of the number of precious metals comes from the periodic table but there's only certain numbe..."
The Future of Altcoins and Competition
The speakers debate the potential for altcoins to coexist alongside Bitcoin, emphasizing the importance of community perception and technological advancements. They discuss how new cryptocurrencies could emerge if they offer significant improvements over existing options, drawing parallels to social networks like Facebook.
"sense that if I want something that's more secure can I add another you know twelve bits to you know the size of my security hash and why why would it ever why would it ever stop if we think about fea..."
Exchangeability and Compatibility in Cryptocurrencies
This segment explores the critical issue of exchangeability and compatibility among different cryptocurrencies. The speakers highlight the strategic considerations that come into play as the market evolves, and how efficient exchanges could facilitate the growth of multiple cryptocurrencies.
"with that I think that there's a room for a large number of altcoins and I think the reason that the existing altcoins are not as popular is just because of inefficiencies in the way that exchanges wo..."
The Importance of Open Protocols
The discussion emphasizes the necessity of open protocols in the cryptocurrency ecosystem, comparing it to email systems and TCP/IP. The speakers argue that while centralized services like Coinbase provide convenience, the ability to opt-out and maintain an open system is crucial for the future of Bitcoin and its community.
"thing of just people having faith in their some value and pick coin right sort of like as time goes on presumably people will gain get more faith into your question of extensibility I think neither co..."
The Time Factor in Bitcoin's Evolution
In this concluding segment, the speakers touch on the significance of time in the evolution of Bitcoin. They hint at the ongoing developments and challenges that Bitcoin faces, setting the stage for future discussions on its role in the financial landscape.
"the case that regulation says coinbase is trusted because they know their customers like for example with the IRS ruling its first that sounds terrible you have to compute all of your changes turns ou..."
Volatility and Market Stability
In this segment, the discussion focuses on the volatility of Bitcoin's value and its impact on user confidence. The speaker explains how short-term fluctuations can deter users and investors, while also suggesting that as the market matures, volatility may decrease, leading to greater stability in Bitcoin's value.
"the big thing about Bitcoin and cryptocurrencies that bothers me just the resolution time to guarantee that this transaction did that I have two confirmations I mean that's 20 minutes right now that h..."
The Future of Bitcoin Transactions
The speakers contemplate the future of Bitcoin transactions and the potential for growth in international payments. They discuss the challenges faced by Bitcoin in gaining traction compared to traditional payment systems and the need for innovative applications that leverage Bitcoin's unique capabilities.
"institution emerge which acts as the trusted party for that function that's right that's right I guess me just seems like a big big hole in cryptocurrencies in general just the resolution time to ensu..."
Mediating Bitcoin Transactions
This segment delves into how companies mediate Bitcoin transactions to mitigate risks associated with value fluctuations. The speaker explains how services like Coinbase can guarantee dollar amounts for merchants, thus facilitating smoother transactions despite Bitcoin's volatility.
"state that was progressive decided to issue a crypto currency and peg it to their own currency and try and wipe out Bitcoin by actually introducing the idea of somebody actually would have a stable va..."
Barriers to Bitcoin Adoption
The discussion highlights the barriers to Bitcoin adoption, particularly the need for practical usability and security solutions. The speakers reflect on the slow emergence of native Bitcoin applications and the importance of developing user-friendly tools to encourage broader acceptance.
"and for that there are companies that will mediate the transaction and just eat that eat that risk it's one of the things that coin base for example does if you're a merchant you want to get paid you ..."
The Path to Mainstream Bitcoin Use
In this concluding segment, the speakers emphasize the need for innovative solutions and applications to drive Bitcoin's mainstream adoption. They draw parallels to the early days of the internet, suggesting that just as it took time for essential services to emerge, Bitcoin will also require patience and development to reach its potential.
"convenient what's gonna make Bitcoin successful for the market Silk Road 3 I don't know but I mean the International payment payments have always been the big thing I as a research matter I have a col..."
The Disparity Between Hype and Reality
The conversation shifts to the disparity between the media hype surrounding Bitcoin and the actual entrepreneurial activity in the space. The speakers express concern over the slow pace of innovation and the need for serious engagement from economists and entrepreneurs to explore Bitcoin's potential beyond its current applications.
"so you know it's not like random member of the public who just wants to buy a pizza with bitcoins can easily do that right now but there's no fundamental barrier to that existing it's just that it's i..."
Bitcoin's Regulatory Landscape
In this segment, the speakers discuss the importance of regulatory recognition for Bitcoin, citing IRS rulings as a positive step. They emphasize the need for Bitcoin to be used in mainstream contexts, moving away from its association with illicit activities, and the significance of regulatory clarity for its future.
"it takes time incorporating this kind of technology when they basically have the consume the consumer space already in that area it's well in the case of Bitcoin it's very well personally to partnersh..."
Bitcoin's Monetary Policy and Economic Implications
This segment delves into Bitcoin's monetary policy, discussing its fixed supply and the implications for economic growth. The speakers raise concerns about the potential destabilization of the network due to its mining reward structure and the need for serious academic analysis of Bitcoin's economic impact, highlighting the superficial treatment it often receives.
"more mainstream contexts I think yes so this is kind of a random curveball question I'm not an economist but apparently you need some kind of healthy inflation rate for the economy to grow and you kno..."