Revealing the future of the Blockchain! 16 Perspectives from a16z Crypto: Casinos Should Not Hamper True Innovation

This article features some insightful views from Chris Dixon, the founder and managing partner of a16z Crypto, in his new book 'Read Write Own: Unveiling the Block chain network trends and potential of WEB3'. The content is compiled from relevant posts by a16z.

Looking for a way to gain a deeper understanding of the world of technology, business, and startups? Want to learn about the history and future of the internet? Need a concise explanation of cryptocurrency and the importance of the blockchain movement? We have the answers for you.

Here, we have selected the sharpest segments and most provocative perspectives from the best-selling book in The New York Times, Read Write Own. This book is extremely information-dense and deeply analyzes the hidden structures that determine how money and power flow on the internet. Chris Dixon, founder and managing partner of a16z Crypto and with decades of experience investing in startups, reveals how the internet that dominates our lives operates and how to restructure these networks to make internet users true owners.

The perspective discussed in 'Read Write Own' provides a new way of thinking for business and life - from nurturing innovation, seizing disruptive opportunities, to boldly betting on non-mainstream directions. Sam Altman, CEO of OpenAI, describes this book as a fascinating vision of the future of the internet and its realization path. Whether you are passionate about the cryptocurrency industry, just starting to understand it, or simply curious about the industry's trends, this book can bring value to you.

The following is the most attractive excerpt in the book, each paragraph contains important inspiration:

1. The Essence of 'Permission'

In business, seeking permission is not as simple as asking parents or teachers for permission, where you can get a simple 'yes' or 'no' answer; nor is it like traffic lights that clearly define the rules of the road. In the business industry, permission often becomes a disguised tyranny. Dominant technology companies use the power of 'permission' to hinder competition, disrupt markets, and extract profits from it.

2. Software as Art

The expressiveness of software is extremely rich. Instead of seeing it as a product of the engineering industry, it is better to see it as a form of art. The plasticity and flexibility of code provide a very broad design space. The breadth of this possibility is closer to creative activities such as sculpture or novel writing rather than engineering practices such as bridge construction. Like other art forms, practitioners in the software industry will continue to create new genres and movements, fundamentally expanding the boundaries of possibility.

3. Problems Solved by Block Chain

Blockchains can make strong commitments to their future behavior, a feature that makes it possible to create entirely new networks. Blockchain networks solve many of the problems that existed in early network architectures: they can connect people, build social networks, and empower users rather than letting corporate interests dominate; they can support markets and payment networks, facilitate business activities, and significantly reduce intermediation costs; they can also give rise to new forms of monetized media, interoperability, and immersive digital worlds, as well as AI products that reward creators rather than exploit them...

Asking 'What problem does the Block chain solve?' is like asking 'What problem does steel solve compared to wood?' You can build buildings or railways with wood or steel, but steel allows us to build taller buildings, stronger railways, and grander public works in the early days of the industrial revolution. Similarly, through the Block chain, we can create a more fair, sustainable, and resilient network with broader prospects compared to today's network system.

4. A New Era of the Internet

Our current decisions will determine the future of the network: who builds, owns, and uses the network; where innovation will occur; and how everyone's user experience will be. Blockchains and the networks they support unleash extraordinary power of software as an art form, with the network becoming their canvas. This movement of change has the opportunity to rewrite history, reshape the relationship between humans and the digital world, and redefine possibilities... This is an opportunity to create an ideal network, not to passively accept the inherited network.

5, The Supreme Position of the Internet

Web design determines destiny.

The internet is an organizational structure that enables billions of people to interact in an orderly manner. It determines the winners and losers in the world, and its algorithms determine the flow of capital and attention. The structure of the internet not only guides its own development direction but also determines the concentration of wealth and power. Given the scale of the internet today, even seemingly insignificant software design decisions can have far-reaching ripple effects. When analyzing the power dynamics of the internet, the core question is 'Who controls a certain network?'

6. Protocol VS Enterprise

The difference between protocol networks like email and corporate networks like Twitter is that the network effect of email belongs to a community, not a company. Email is not owned or controlled by any company, and anyone can access it through software created by independent developers who support the underlying protocol. Developers and users are free to decide what to develop and use. The decisions that affect the community are also collectively made by the community itself.

7、The Impact of New Technology

There are two main ways people use new technologies: (1) to do what they could already do, but now in a faster, cheaper, simpler, or higher quality way; (2) to do completely new things that they couldn't do before. In the early stages of new technology development, the first type of application is usually more popular, but it is often the second type of application that has a lasting impact on the world.

8. Enterprise controlled network

The structure of the corporate network is very simple: it is controlled by a company and provides centralized services for the network. This company has absolute control and can modify the terms of service at any time and for any reason, decide who can access the network, and how funds flow.

The reason why enterprise networks are centralized is that ultimately all rules are decided by one person, usually the CEO.

9, Block chain as a non-consensus bet

Blockchains are different. It is a non-consensus bet. Although many people (including myself) recognize their potential, mainstream institutions often overlook them. In fact, the common view in the technology industry is that only the technological improvements that existing giants have paid attention to are important, such as larger databases, faster processors, larger neural networks, and smaller devices. This perspective is too short-sighted.

10、How hobbies drive future industries

Unlike mainstream technologies, 'exogenous' technologies often emerge from the fringe industries. They are driven by amateurs, tech enthusiasts, open-source developers, and startup founders, incubating outside the mainstream. These efforts often require less capital and formal training, thereby leveling the playing field to some extent with industry insiders. However, the lower barriers also result in a lack of recognition from insiders towards these technologies and their promoters.

Hobbies are the catalyst for future industries. Hobbies are often the energy invested by the smartest people when not constrained by short-term economic goals. I like to say that what the smartest people do on weekends will become the daily routine of others ten years later.

11. Simplicity of Tokens

The token 'what it is' is far less important than 'what it can do'.

Tokens can represent ownership of any digital asset, including money, art, photos, music, text, code, game items, voting rights, access rights, and even anything people may come up with in the future. With some additional building blocks, they can also represent real-world things, such as physical goods, real estate, or US dollars in a bank account. Anything that can be represented by code can be wrapped in a token for buying, selling, using, storing, embedding, transferring, or any other purpose.

If these sound too simple or even trivial, that is exactly the original intention of token design - simplicity is a virtue.

12, Owner vs. User

The concept of ownership is so deeply ingrained in our lives that we can hardly imagine what the world would be like without it.

Imagine if the clothes you bought could only be worn in the occasion of purchase; if you couldn't resell or reinvest in your house and car; or if you had to change your name every time you went somewhere? This is the digital world built by today's corporate networks.

13, Block 鏈如城市

The function of Block鏈 is remarkably similar to urban planning.

To launch a Block chain network is like building a new city on undeveloped land. The city planner constructs some initial buildings, and then designs a system of land allocation and tax incentives to attract residents and developers. Property rights, or ownership, play a crucial role by providing property owners with a strong commitment: they will always own their property and can confidently invest in it. As the city develops, the tax base expands. Tax revenue is reinvested in public projects such as streets and parks, more land is allocated, and the city continues to grow.

14. Restore the community through tokens

The Block chain network deeply embeds community ownership in its core design, which has almost become part of its DNA.

Although variants like Dogecoin, a "meme coin," may seem like a joke, they demonstrate how users seek a sense of community and connection in the digital world by using various tokens, whether humorous or serious, to fill their sense of belonging and connection.

These tokens are not just technical tools, they have become a way for people to gather communities. By holding these tokens, users become participants and owners of the community, not just consumers. This design empowers users and breaks the control situation dominated by centralized companies in traditional platform economies, creating possibilities for more decentralized, goal-oriented communities.

15. As the internet constitution, the blockchain

Web designers can use blockchain to create formal rules enforced by code. These rules are like the constitution of the network. The content of a constitution can be the subject of debate, argument, and experimentation, but the existence itself, as well as the ability to embed rules into immutable software, is an unprecedented advancement. This was not achievable in previous network designs.

16, Two Cultures of Cryptocurrency

There are two completely different cultures interested in Block chains.

The first culture believes that the Block chain is a way to build a new type of network... I call this culture "computer" because its core idea is that the Block chain is driving a whole new computing revolution.

Another culture is primarily interested in speculation and making money. People with this mindset only see blockchain as a tool for creating new tokens for trading. I call this culture 'casino' because its core essence is just gambling.

But 'casino' should not drag down 'computer'.

Additional part: Good old times

The Block chain is at the forefront of computer development, much like personal computers in the 1980s, the Internet in the 1990s, and mobile phones in the 2010s.

Today, as people look back on the classic moments in the history of computers, they imagine the scenes of Noyce and Moore, Jobs and Wozniak, Page and Brin. Those amateur enthusiasts explored, argued, and drove the development of technology, those creators who buried themselves in 'coding' on nights and weekends.

It seems to be late, but it is actually early. Now is the best time to reimagine what the Internet can be and what it can do. Software is an unparalleled innovation playground. You don't have to accept the current state of the Internet that you discover, but you can create something better... As a builder, creator, user, and most importantly, as an owner.

You are right here now. This is the "good old times".

[Disclaimer] The market is risky and investment needs to be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views or conclusions in this article are suitable for their specific situation. Invest at your own risk.

This article is authorized to be reproduced from: 'Foresight News'

Original author: a16z

"Revealing the future of Block chain! 16 views from a16z Crypto: Casinos should not drag down real innovation" This article was first published in "Crypto City"