any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions
This is a significant achievement to be recognized as a word. I can imagine as more countries and corporations begin to issue there own digital currencies that the word cryptocurrency and digital currency will begin to diverge. In my mind, cryptocurrencies are decentralized but is a cryptocurrency like Petro Coin really decentralized? I think that's where the word digital currency will come in. Not all digital currencies are cryptocurrencies, but all cryptocurrencies are digital currencies. I'd love to see people not confuse the two.
Do We Need Blockchain for Everything?
Wired wrote an article titled, "The Decentralized Internet is Here With Some Glitches". I was wary how it started out. I thought it would be an article proclaiming how everyone needs blockchain. The article even has a quote from Chris Dixon with a similar line of thinking:
The best entrepreneurs, developers, and investors have become wary of building on top of centralized platforms," Chris Dixon, a partner with investor Andreessen Horowitz
Ultimately, the article was a good read. I've noticed two types of articles in the media. Articles criticizing Bitcoin and saying it's a Ponzi scheme while the other type of article proclaims blockchain has the next great technology. I think the technology is somewhere in the middle. Cryptocurrencies and blockchain are legitimate, technology improvements, but statements like Chris Dixon's are just as bad as the Ponzi scheme statements. Most people might be wary of Facebook or Google, but they still want to build the next Facebook or Google.
People talk about the internet having killer applications such as email that helped make the internet become ubiquitous, but blockchain technology still has a long way to go before a viral application hits the market. The Wired article discusses a decentralized version of Google Docs. I'd love to use products where I know my information isn't being recorded and there is a less likely chance Big Brother is watching, but at what costs? The article concludes with:
Finding the killer apps of the decentralized internet will take more time, people, and money than have been thrown at the problem so far. Pakman says that societal attitudes to power and big tech companies appear to be in the right place to deliver them. "There’s massive distrust in centralized everything," he says. "We don't trust the government, don't go to church or synagogue, don't trust banks and now we no longer trust tech companies."
There are people that haven't the government since the dawn of the time. There will always be people that distrust the government and distrust technology companies. However, will blockchain technology be magnitudes better than current technology to encourage people to switch from Google Docs to Graphite Docs?
Some Other Things I Read Today
- The Emergence of Cryptoeconomic Primitives
- A Brief Overview of dApp Development
- Crypto Exchanges Are Raking in Billions of Dollars
- Coinbase now has an M&A boss. What sorts of things would she want to acquire?
- A Simple Explanation of Crypto-collectibles
If you enjoyed what I wrote, you should also follow me on Twitter @amlewis4.
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