This clip is making the rounds of David Letterman and Bill Gates back in 1995 discussing the internet. Here is @jason discussing it. It's worth watching.
It’s easy to laugh at Letterman but in fact he was just expressing the consensus view at the time. In 1995, the best use cases that someone as smart as Gates could come up with were things you could already do with radios and tape recorders.
Of course what Gates understood was that the internet would rapidly improve and eventually unlock the internet-native experiences that we enjoy today.
The web was permissionless and programmable, which meant developers could experiment and create new classes of internet-native applications that no one in 1995 had yet imagined.
This would lead to a mutually reinforcing feedback loop between infrastructure (browsers, web servers, bandwidth, etc) and applications (search, video, social networks, etc).
One other relevant 90s story is the battle over cryptography.
It may come as a surprise that Netscape and others browsers that included 128-bit encryption were classified as “munitions” which meant it was illegal to download them outside of the US. en.wikipedia.org/wiki/Export_of…
The argument at the time was “Why would anyone except criminals want to use encryption? What are you trying to hide?"
The counterargument was “someday people will do most of their shopping, banking and other important activities on the internet.”
But of course at the time this simply wasn’t the case, and it required vision to imagine the world as it would exist in 10 or 20 years.
This highlights a core asymmetry in emerging computing movements.
Early on, it’s easy to point out flaws and find uninteresting use cases. Sometimes bad actors are early adopters.
It’s easy to say “you’ve invented the radio” or “you’ve invented the tape recorder.”
It takes optimism and vision – and years of hard work by many people – to build out the infrastructure, find the native applications, and develop the technology to its full potential.
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No people I know who understand security would allow a surveillance speaker like Alexa or Google Voice in their house.
Long complicated privacy policies that users don’t understand.
Record you and send audio off to random 3rd-parties to “improve the system.”
Advertising-based business models where the incentive is always to surveil more.
Apple at least has a mostly hardware-based business model and has very publicly made privacy the focus. And we are probably stuck with the iPhone. So keep your iPhone but get rid of the rest.
Hundreds of billion dollar businesses have been built on SMTP (and of course HTTP).
“What about spam and other bad things?”
As with SMTP and HTTP, we have legal system, plus providers (gmail etc) can filter (but are constrained from turning evil because the user switching costs are low).
Blockchains are virtual computers that run on top of a network of physical computers that trade off performance (overhead of consensus mechanism) for the novel property that you can make credible long-term commitments to users and developers.
Therefore it is correct but not interesting to say blockchains are less performant that an individual computer controlled by, say Google or Facebook.
If you want to trust your business or you personal life to a computer owned by Google or Facebook, that’s great.
I wouldn’t. Many of us would like to opt out and try a different model.
There is a widespread view that the internet and software industry is now mature, that the historical pattern of disruptive revolutions every 10-15 years is now over. 🧵
In my experience, this view is tacitly held by most of the establishment: institutional investors, tech execs, policymakers, media, etc. It affects valuations, corporate behavior, media coverage, and policy making.
Let’s say you run a startup that has a successful product, and you are now considering what product you should build or acquire next. 🧵
Something I find useful is mapping out the typical economic loop from start to finish, and then considering the startup’s position within that loop.
I’ll explain by looking at the current internet landscape and the strategic position of Google, Facebook, Amazon, and Apple. (I’ll adapt this to web3 in a future thread.)