A16Z’s unapologetic bet on cryptocurrency and blockchain companies is big for the industry. As crypto heats up again and blockchain 3.0 projects emerge (Cosmos, Polkadot, Ethereum Proof of Stake) VC will help legitimize the industry.
Can you provide a single problem where the right solution space is blockchain? Ive thought about this a good amount, and cannot come up with a single use case where current established centralized technology is not a better solution.
A16Z is re-registering as a financial advisor, renouncing its status as a VC
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Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#92Earlier quoted context omitted.
Can you provide a single problem where the right solution space is blockchain? Ive thought about this a good amount, and cannot come up with a single use case where current established centralized technology is not a better solution.
US expat trying to receive money overseas. US banks won't serve you unless you have a US address. Many lie and say it is illegal. The usual work-around is to establish some kind of US address through a relative or friend. Still ends up being costly and slow to do transfers. Some startups have tried to address it but it is still not very good. Coinbase like to claim they have solved this issue but it is total BS becau…
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#93tl;dr - A16Z is reclassifying themselves as an "investment advisor", which will allow them to make riskier bets (crypto, real estate, etc). They'll still invest in startups like any other VC firm.
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#94A16Z’s unapologetic bet on cryptocurrency and blockchain companies is big for the industry. As crypto heats up again and blockchain 3.0 projects emerge (Cosmos, Polkadot, Ethereum Proof of Stake) VC will help legitimize the industry.
Can you provide a single problem where the right solution space is blockchain? Ive thought about this a good amount, and cannot come up with a single use case where current established centralized technology is not a better solution.
I have found it to be very useful during these conversations.
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#95Skepticism might be warranted, but it should be noted by now that decentralized finance has a place in the present and future of our planet and it's not going away. I strongly encourage technologists to keep an open mind and do in depth research into the space. Yes, 2017 was over-hyped. The tech was not mature then, and while it has matured some since then, there's still quite a ways to go. Bitcoin Lightning network…
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#96A16Z’s unapologetic bet on cryptocurrency and blockchain companies is big for the industry. As crypto heats up again and blockchain 3.0 projects emerge (Cosmos, Polkadot, Ethereum Proof of Stake) VC will help legitimize the industry.
Can you provide a single problem where the right solution space is blockchain? Ive thought about this a good amount, and cannot come up with a single use case where current established centralized technology is not a better solution.
1. Althea (https://althea.org/) is incentivized mesh networking. Currently, mesh networking is an under-provisioned public good. It's a public good because how would you even pay for it? If you want to provide bandwidth to some mesh network you need to spin up your router and then form some sort of business arrangement with all the other routers in range. If you want to consume bandwidth from some mesh network you must first form a business relationship with every router you'll be using. With a protocol such as Althea all you have to do is start your router and set a price in $/byte . Your router broadcasts that price, and assuming the price is competitive packets will start to be forwarded and you'll start to receive payments.
With Althea all of these business relationships I described before are still formed! However, they exist in the form of standardized smart contracts which are cheap and quick to create. Like in all liquid markets, there's no negotiation over terms.
While incentivized mesh networking is theoretically possible without a blockchain, the transaction costs are so high that I'm not aware of any deployments. The blockchainless answer for reducing transaction costs seems to be: create some central entity which everyone signs up for. It collects information on who routed packets through who and collects and distributes payments accordingly.
The blockchain answer gives you:
- no intermediary who takes 20% just for matchmaking
- an easy way of paying other parties
- no need to sign up or register for anything. You're just communicating with your peers!
2. Filecoin is distributed file storage much like Amazon's S3. Currently, there are only a couple suppliers (Google, Amazon, Microsoft, etc) who store your files. They have some healthy competition and economies of scale which bring your price down but supply is still rather limited: mostly because there's no standardized "file storage contract". Also, they seem to enjoy premium pricing, even with all those economies of scale they manage to be most expensive options. Backblaze and some company called Wasabi are much cheaper for what appears to be the same service. Can you really trust them though? My data is important. I'll put it into S3 just to be sure.
The Filecoin network goes through some crazy steps to prove that providers are actually storing the files they claim to be storing and actually replicating them the number of times they claim to be replicating them. This lets you trust any supplier on the network and turns object storage into a commodity. Filecoin also has the same blockchain benefit of requiring little registration. Do you have a desktop computer with a 2 TB hard drive, even though you're only using a few hundred GB of it? Start the Filecoin daemon and wait, after some time passes you'll have money.
This 0-registration is a level of UX which blockchains cannot currently provide but in principle they could. However, it's something that would be very difficult for any central service to provide. And again, the file storage becomes a commodity without any intermediate market-maker taking x%. The blockchain acts as that market-maker.
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#97Earlier quoted context omitted.
Can you provide a single problem where the right solution space is blockchain? Ive thought about this a good amount, and cannot come up with a single use case where current established centralized technology is not a better solution.
Game items like weapons and shields in an RPG game. Imagine if there is a global database of such items and different game developers build different games around it. So you could use your items in different games. What centralized entity would you trust to run and maintain this database? What if this centralied goes bankrupt and shuts down the servers? If you are a small game developer, you are screwed. Even if it's…
This is a made up problem.
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#98Skepticism might be warranted, but it should be noted by now that decentralized finance has a place in the present and future of our planet and it's not going away. I strongly encourage technologists to keep an open mind and do in depth research into the space. Yes, 2017 was over-hyped. The tech was not mature then, and while it has matured some since then, there's still quite a ways to go. Bitcoin Lightning network…
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#99Earlier quoted context omitted.
> to use for this purpose without fearing that it will get shut down, or the rules would be changed. Looking at the hard forks in existing cryptocurrencies I wouldn't trust the rules to not change
Making it hard to change the rules is one of the value propositions of decentralized blockchains. Hard forks are pretty rare and when do happen, they are contentious the original chain survives (for example Ethereum Classic). Compare this to a centralized entity like Blizzard changing rules in World of Warcraft. Wouldn't you agree that it's much much easier for Blizzard to change the rules in their game, than to chan…
Re: A16Z is re-registering as a financial advisor, renouncing its status as a VC
#100Earlier quoted context omitted.
There is a legit use-case in micropayments with certain crypto implementations that don't share the blockchain's massive centralisation (what else do you call "every transaction has to be accepted on one shared append-only log"?), that would allow for offline P2P transactions if you have some trust. These cryptocurrency implementations along with some infrastructure would let you build a cheap low-cost micropayments…
Interesting Why not just use the real Paypal?
Some of us are banned for no actual reason from Paypal. Some others, banks.