More

    Jack Dorsey: Banking The Unbanked

    There is an “architectural shift” in technology and in the world brought upon by cryptoassets, which many crypto supporters miss, according to Marc Andreessen, co-founder of venture capital powerhouse Andreessen Horowitz (a16z), and founder of Netscape Communications Corporation.

    Today, a16z announced a new USD 2.2bn fund to continue investing in crypto networks.

    Meanwhile, in a recent interview with economic blogger Noah Smith, Andreessen compared the topic of crypto with the parable of the blind men and the elephant, allowing people to interpret many different parts in many different ways, or use it to make their point. As an example, he gave people seizing on “the money part,” then either glorifying crypto as a new type of monetary system that brings freedom from the nation-state, or “crucify[ing] it as a danger to economic stability and the ability for governments to tax.”

    However, while these are interesting arguments, Andreessen stressed,

    “I think they all miss a more fundamental point, which is that crypto represents an architectural shift in how technology works and therefore how the world works. That architectural shift is called distributed consensus — the ability for many untrusted participants in a network to establish consistency and trust.”

    According to him, the Internet has never had this until now and it will take thirty years to work through all of the things that can be done as a result. While money is the easiest application of this idea, other things that can now be built in theory include Internet native contracts, loans, insurance, title to real-world assets, unique digital goods aka non-fungible tokens (NFTs), and online corporate structures such as digital autonomous organizations (DAOs), among others, the investor said.

    This also presents a great impact on and shift in incentives – which further impacts reaching these applications.

    Collaborative human effort online so far was either in the form of a literal adoption of real-world corporate norms, such as a company with a website, or an open-source project like Linux that didn’t have any money directly attached to it, said Andreessen.

    “With crypto, you can now create thousands of new kinds of incentive systems for collaborative work online, since participants in a crypto project can get paid directly without a real-world company even needing to exist,” he said.

    While open-source software development has been great, people are generally willing to work more for money than for free, “and all of a sudden all those things become possible and even easy to do.” And though it will take a few decades to see the results of this as well, “I don’t think it’s crazy that this could be a civilizational shift in how people work and get paid,” said Andreessen.

    He also discussed the idea that AI is somewhat a left-wing idea, having centralized machines making top-down decisions, but that crypto is a right-wing idea, having many distributed agents, humans and bots, making bottom-up decisions, he said, citing another prominent venture capitalist Peter Thiel, co-founder of PayPal.

    The tech industry has historically been dominated by left-wing politics and today’s big tech companies are intertwined with the US Democratic Party, Andreessen said, noting,

    “Crypto potentially represents the creation of a whole new category of technology, quite literally right-wing tech that is far more aggressively decentralized and far more comfortable with entrepreneurialism and free voluntary exchange. If you believe, as I do, that the world needs far more technology, this is a very powerful idea, a step function increase in what the technology world can do.”

    As for a16z becoming known for innovating in the space of venture capital itself, Andreessen said that there is something old and something new about venture capital – and this something new includes crypto.

    “So we sit at the vortex of this combination of the very old and the very new. It’s certainly possible that venture capital itself gets pulled into this vortex and comes out the other side radically transformed, and in fact, this is what some of the smartest crypto experts are predicting,” Andreessen concluded.

    Stay in the Loop

    Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

    Latest stories

    - Advertisement - spot_img

    You might also like...

    bitcoin
    Bitcoin (BTC) $ 27,181.28
    ethereum
    Ethereum (ETH) $ 1,893.47
    tether
    Tether (USDT) $ 1.00
    bnb
    BNB (BNB) $ 306.86
    usd-coin
    USD Coin (USDC) $ 0.999823
    xrp
    XRP (XRP) $ 0.520363
    staked-ether
    Lido Staked Ether (STETH) $ 1,894.01
    cardano
    Cardano (ADA) $ 0.375826
    dogecoin
    Dogecoin (DOGE) $ 0.072808
    solana
    Solana (SOL) $ 21.15
    matic-network
    Polygon (MATIC) $ 0.899713
    tron
    TRON (TRX) $ 0.081736
    litecoin
    Litecoin (LTC) $ 96.56
    polkadot
    Polkadot (DOT) $ 5.27
    binance-usd
    Binance USD (BUSD) $ 1.00
    shiba-inu
    Shiba Inu (SHIB) $ 0.000009
    avalanche-2
    Avalanche (AVAX) $ 14.51
    dai
    Dai (DAI) $ 1.00
    wrapped-bitcoin
    Wrapped Bitcoin (WBTC) $ 27,207.29
    uniswap
    Uniswap (UNI) $ 5.07
    leo-token
    LEO Token (LEO) $ 3.57
    chainlink
    Chainlink (LINK) $ 6.39
    cosmos
    Cosmos Hub (ATOM) $ 10.68
    okb
    OKB (OKB) $ 46.07
    monero
    Monero (XMR) $ 147.41
    the-open-network
    Toncoin (TON) $ 1.75
    ethereum-classic
    Ethereum Classic (ETC) $ 18.17
    stellar
    Stellar (XLM) $ 0.092178
    bitcoin-cash
    Bitcoin Cash (BCH) $ 114.90
    filecoin
    Filecoin (FIL) $ 4.91
    internet-computer
    Internet Computer (ICP) $ 4.82
    true-usd
    TrueUSD (TUSD) $ 0.99994
    lido-dao
    Lido DAO (LDO) $ 2.29
    aptos
    Aptos (APT) $ 8.92
    quant-network
    Quant (QNT) $ 115.18
    hedera-hashgraph
    Hedera (HBAR) $ 0.050468
    crypto-com-chain
    Cronos (CRO) $ 0.059535
    arbitrum
    Arbitrum (ARB) $ 1.22
    near
    NEAR Protocol (NEAR) $ 1.62
    vechain
    VeChain (VET) $ 0.019839
    the-graph
    The Graph (GRT) $ 0.128716
    apecoin
    ApeCoin (APE) $ 3.13
    algorand
    Algorand (ALGO) $ 0.152315
    the-sandbox
    The Sandbox (SAND) $ 0.567265
    eos
    EOS (EOS) $ 0.909943
    paxos-standard
    Pax Dollar (USDP) $ 1.00
    frax
    Frax (FRAX) $ 0.998053
    elrond-erd-2
    MultiversX (EGLD) $ 38.11
    optimism
    Optimism (OP) $ 1.48
    rocket-pool
    Rocket Pool (RPL) $ 49.23
    render-token
    Render (RNDR) $ 2.58
    aave
    Aave (AAVE) $ 63.30
    decentraland
    Decentraland (MANA) $ 0.490413
    fantom
    Fantom (FTM) $ 0.320423
    blockstack
    Stacks (STX) $ 0.616381
    tezos
    Tezos (XTZ) $ 0.916587
    theta-token
    Theta Network (THETA) $ 0.837189
    rocket-pool-eth
    Rocket Pool ETH (RETH) $ 2,033.98
    axie-infinity
    Axie Infinity (AXS) $ 7.18
    immutable-x
    ImmutableX (IMX) $ 0.792943
    flow
    Flow (FLOW) $ 0.728574
    usdd
    USDD (USDD) $ 1.00
    havven
    Synthetix Network (SNX) $ 2.35
    neo
    NEO (NEO) $ 10.52
    gala
    GALA (GALA) $ 0.030379
    kucoin-shares
    KuCoin (KCS) $ 7.49
    bitdao
    BitDAO (BIT) $ 0.496604
    whitebit
    WhiteBIT Token (WBT) $ 4.91
    curve-dao-token
    Curve DAO (CRV) $ 0.84978
    radix
    Radix (XRD) $ 0.067342
    bitget-token
    Bitget Token (BGB) $ 0.464873
    bitcoin-sv
    Bitcoin SV (BSV) $ 32.81
    injective-protocol
    Injective (INJ) $ 7.90
    gatechain-token
    Gate (GT) $ 4.45
    maker
    Maker (MKR) $ 674.94
    klay-token
    Klaytn (KLAY) $ 0.185204
    gemini-dollar
    Gemini Dollar (GUSD) $ 1.00
    iota
    IOTA (MIOTA) $ 0.205285
    conflux-token
    Conflux (CFX) $ 0.269168
    bittorrent
    BitTorrent (BTT) $ 0.00000059175955
    kava
    Kava (KAVA) $ 1.01
    pepe
    Pepe (PEPE) $ 0.000001
    chiliz
    Chiliz (CHZ) $ 0.101589
    tokenize-xchange
    Tokenize Xchange (TKX) $ 6.45
    pax-gold
    PAX Gold (PAXG) $ 1,948.13
    casper-network
    Casper Network (CSPR) $ 0.045622
    mina-protocol
    Mina Protocol (MINA) $ 0.54628
    terra-luna
    Terra Luna Classic (LUNC) $ 0.000085
    xdce-crowd-sale
    XDC Network (XDC) $ 0.035809
    sui
    Sui (SUI) $ 0.928793
    compound-ether
    cETH (CETH) $ 37.99
    gmx
    GMX (GMX) $ 55.68
    dash
    Dash (DASH) $ 42.54
    tether-gold
    Tether Gold (XAUT) $ 1,950.00
    huobi-token
    Huobi (HT) $ 2.94
    ecash
    eCash (XEC) $ 0.000024
    frax-share
    Frax Share (FXS) $ 6.54
    trust-wallet-token
    Trust Wallet (TWT) $ 1.07
    frax-ether
    Frax Ether (FRXETH) $ 1,893.96
    woo-network
    WOO Network (WOO) $ 0.239662