Just listened to this incredible @villageglobal podcast where @eriktorenberg talks to @naval and @balajis about crypto.
I wanted to share some of my notes & understanding from the first part where they discuss "why crypto?"
Thread below 🧵
I wanted to share some of my notes & understanding from the first part where they discuss "why crypto?"
Thread below 🧵
1/ Humans are network species & operate in groups just like all animals (i.e. ants, bees).
What makes people different though is that we can work across genetic boundaries.
For example, you (reader) and me are both different but can still work together to get x done.
What makes people different though is that we can work across genetic boundaries.
For example, you (reader) and me are both different but can still work together to get x done.
2/ A network is a system of interconnected people or things.
Phone systems, money, electricity, etc. are all examples of networks.
Networks have to be governed with rules or else the networks will collapse due to bad actors.
Phone systems, money, electricity, etc. are all examples of networks.
Networks have to be governed with rules or else the networks will collapse due to bad actors.
3/ Historically, network leaders have been figures like kings, corporations, presidents, etc.
The issue is that whoever is at the center of the network becomes too powerful.
For example, kings become tyrants. Corruption, greed, status, etc. are too coercive.
The issue is that whoever is at the center of the network becomes too powerful.
For example, kings become tyrants. Corruption, greed, status, etc. are too coercive.
4/ Marketplaces have no single rulers. The pricing, dynamics, etc. are determined by the members of the market.
Marketplaces you probably know: stock market, real estate, airbnb, Uber, etc.
The issue with these marketplaces are the gatekeepers involved.
Marketplaces you probably know: stock market, real estate, airbnb, Uber, etc.
The issue with these marketplaces are the gatekeepers involved.
5/ Stock brokers, agents, and platforms are all examples of gatekeepers that operate on a win-win model (i.e. fees, commissions).
If the transaction is between a buyer & seller, why are the middlemen perceived as the most important and powerful?
No working alternative.
If the transaction is between a buyer & seller, why are the middlemen perceived as the most important and powerful?
No working alternative.
6/ There was no way to complete transactions in a marketplace without a central authority or “trusted figure”.
At the end of the day, these authorities are primarily working for themselves. They are going to act & use their power how they see fit.
So what's different now?
At the end of the day, these authorities are primarily working for themselves. They are going to act & use their power how they see fit.
So what's different now?
7/ *Drumroll please*.....Blockchains!
A blockchain is simply a database with some unique features.
1) Not owned by any one person or organization (decentralized)
2) All transactions & records are visible to anyone (auditable)
3) No hidden tamperings or stealing (resilient)
A blockchain is simply a database with some unique features.
1) Not owned by any one person or organization (decentralized)
2) All transactions & records are visible to anyone (auditable)
3) No hidden tamperings or stealing (resilient)
8/ Blockchains bring marketplace networks to all digital systems.
These blockchain based marketplaces will disrupt most processes we take for granted today.
Okay so what does that mean?
These blockchain based marketplaces will disrupt most processes we take for granted today.
Okay so what does that mean?
9/ Let’s consider this interesting application @naval proposes.
Instead of having PG&E control all electricity, why don’t we set up a self organizing solar network.
You set up a solar panel on your house and pay into the system with power and get paid in “solar coin”.
Instead of having PG&E control all electricity, why don’t we set up a self organizing solar network.
You set up a solar panel on your house and pay into the system with power and get paid in “solar coin”.
10/ You’re buying into the system with resources and getting rewarded for your contributions.
Same can apply for telecommunications. Instead of Verizon and T-Mobile controlling the cellular network, it’s now possible to organize a decentralized version.
There are endless opps
Same can apply for telecommunications. Instead of Verizon and T-Mobile controlling the cellular network, it’s now possible to organize a decentralized version.
There are endless opps
11/ This creates a “cheating-proof” system for people to work together and contribute to a mission.
I believe this change is the epitome of the “what you put in is what you get out” mentality.
Or for Taleb fans, it's making sure market members have skin in the game.
I believe this change is the epitome of the “what you put in is what you get out” mentality.
Or for Taleb fans, it's making sure market members have skin in the game.
12/ #btc is of course the most well known blockchain application. It is digitizing the money network.
Money is the most hacker intruded network.
If #btc continues to stay “unhacked” & grow, it will give confidence to people that digital marketplaces are possible and real.
Money is the most hacker intruded network.
If #btc continues to stay “unhacked” & grow, it will give confidence to people that digital marketplaces are possible and real.
13/ Back in the 90s, people thought the internet would be the ultimate democratizing force.
It did get rid of some gatekeepers, but only for new ones to form in the Bay Area.
Google, FB, etc. all used the internet to become the next set of people ruling over networks.
It did get rid of some gatekeepers, but only for new ones to form in the Bay Area.
Google, FB, etc. all used the internet to become the next set of people ruling over networks.
14/ Our goal is to keep on removing gatekeepers with each new wave of tech.
Systems, marketplaces, etc. need to be leaderless.
The key is to realize that blockchain doesn’t translate to “no governance”.
It means “no centralized governance”.
Systems, marketplaces, etc. need to be leaderless.
The key is to realize that blockchain doesn’t translate to “no governance”.
It means “no centralized governance”.
15/ The craziest part is that this thread covers only the first 10 mins of the podcast. If you thought this thread was interesting, give me a follow and go listen to it here.
podcasts.apple.com/us/podcast/gre…
podcasts.apple.com/us/podcast/gre…
16/ Summary of this thread:
- Humans are network species
- Networks need governance
- Blockchain digitizes marketplaces
- People can organize together without needing a leader or institution
- #btc is redefining money which sets precedence for many other applications
- Humans are network species
- Networks need governance
- Blockchain digitizes marketplaces
- People can organize together without needing a leader or institution
- #btc is redefining money which sets precedence for many other applications
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