What interests you within crypto?
I love storytelling, code and finance. So, I'm learning about DeFi (decentralised finance), NFTs (art-related and not art-related), and infrastructure things like zero knowledge proofs!
Do you believe in crypto?
Yes, I do. Like with anything, not everything will succeed and not everything is a good idea, but I think it's a great space to be building in and a great problem solving tool.
Why?
During fall of 2021, three realisations clicked for me:
- You can't unsolve a maths problem.
Throughout human history, there was a problem that humanity couldn't solve. It's called the Byzantine Generals Problem and is related to something called the double spend problem.
Because we couldn't solve this problem, there was no way for two people to transact if they didn't trust each other.
In 2008, Satoshi Nakamoto solved this problem, publishing the Bitcoin whitepaper.
Then, the Bitcoin and Ethereum blockchains were created, allowing people to create all the revolutions you've heard about.
So, is crypto just hype? Or is it here to stay?
Everything that's happened was possible because a person solved a maths problem. There's no going back. You can't unsolve a maths problem.
- Finance was always meant to be Turing Complete. Only now is it possible.
Ethereum smart contracts allow us to recreate economics in code.
Turing Complete is a computer scientist's way to say "your imagination is the limit".
Many protocols, companies and projects publish their code,
making finance more composable (you can call other people's code) and iterative (you can experiment faster) than ever before.
People can move their liquidity between protocols, contribute to experiments, and participate in a new financial system that promises better access to people who don't trust or can't access traditional financial systems.
And it's all done in code!
- Completely new asset classes like NFTs are being created, presenting creative opportinuties and unexplored problems.
This realisation encapsulates several exciting ideas, including NFTs.
Under the hood, NFTs are actually just a code standard, but they're being used to create many new products, stories and interactions.
Many people know NFTs as digital art. (Aside: If you don't think digital art makes sense, I disagree.)
In the real world, people already own branded goods that are 99% digital, design or societal value and 1% utility.
From there, it doesn't take a leap of the imagination to understand NFTs as status signalling goods or art.
What's interesting is that NFTs are an new asset class with their own problems.
For example, if I own an expensive CryptoPunk or Bored Ape,
that means that I own an expensive illiquid asset. What do I do if I want liquidity from that asset?
There are now ways to financialise it.
For example, you can use an NFT as collateral for a cryptocurrency loan or you can sell a fraction of your NFT. You can even rent it out.
NFTs give people verifiable ownership over digital (and sometimes physical) goods. They grant ownerships to clubs.
They are badges to show your achievements (would you not pay $50 to get your university diploma as a cool rotating NFT?).
They show the events you've attended.
They are tickets to concerts and conferences. They are restaurant reservations. They are tradeable liquidity provider positions (see Uniswap V3).
They are toys.
They are games and game creatures (see Axie Infinity, a play-to-earn game that acts as some peoples' livelihoods).
There are so many uses of NFTs. And this is just one new asset class.
Wrap Up
We're in the early days of this technology.
Crypto is set to influence the world of finance, art, brands, etc for the long-term.
I'm excited to brainstorm with people about it, so bring me your questions.
A Shill
News about an NFT project I am working on is coming soon. I will also be writing more!