Balaji Srinivasan: Applications: Today & 2025
1. A DB for storing things of value
- currency (BTC, ETH)
- tokens (ERC20)
- digital assets (ERC721)
- identity (ERC725, ERC735)
2. A protocol
Payments are now packets. Fully packet-driven transmission of value without reference to a bank. Once we invented ways of sending videos, songs, etc. over the wire we got the internet revolution
3. A protocol
Internet allowed programs to autonomously communicate. Blockchain allows them to autonomously transact. Fundemental for "intelligent agents".
- 10X better than gold
- 10X faster than swift
- 10X larger than kickstarter
- 10X faster than delaware
This is truly a structural change that hasn't fully rippled out yet.
5. Have created many billion dollar entities
6. You have a choice of who to trust
7. Enable internet-scale cap tables
- Who owns what shares of a company - used to be stored in an excel sheet or carta.com.
- Blockchain is far superior alternative - token holders - see their transactions and can trade them (liquid)
8. More is coming
- Games, logins, wiki, marketplaces, dns, browsers, web services
9. Breaks network effects
You have a new tool to issue value to customers early, like giving equity out, to fight the uphill battle of starting a network.
10. Transform social networks
Before: likes, pokes, messages; After: paid DMs, surveys, tasks - "bullish on this"
11. Partial move away from cloud to privacy
12. Blockchains make macroeconomics an experimental science
People can self-govern with these different economic experiments. Akin to the "lab of the states" (where different US states experiment with different laws/policies).
- 1B revenue: exchanges (e.g. Coinbase), miners, issuers (e.g. Eth)
- 100M revenue: hardware wallets (e.g. Ledger)
- 5B+ stored value: stable coins (e.g. Eth, USDC)
- 1B+ stored value: DeFi
Things that might be big by 2025
- Privacy coins (e.g. Dash, Monero, ZCash)
- Lending and interest
- Scaling (Tweet on things in the works)
- Decentralized cold storage (e.g. Casa)
- SaaS-for-gas (e.g. StarkWare)
- Insurance against DeFi contract and default risk (e.g. Opyn, Nexus Mutual)
- Multi-wallets w/ many verbs (e.g. vote, sign, buy, sell, etc.)
- Security innovation (e.g. ZenGo for keyless wallets)
- Novel financial instruments (e.g. Fomo3D, PoolTogether)
- Blockchain Games (e.g. egamers, Forte)
- Crypto social networks (e.g. Voice, Twetch)
- Decentralized DNS (e.g. ENS, Unstoppable, Blockstack, Handshake)
- Automated Market Making (e.g. Uniswap, Kyber Binding Curves) - "bearish on this"
- Decentralized Identity (e.g. 3Box)
- Personal Tokenization (in exchange for their time / consult)
- Mutuals and Guilds (Moloch, Gitcoin)
- Founder's Rewards (pioneered by ZCash; biz model for funding devs, like 10 year vest)
- On-Chain developer bounties (e.g. Tezos)
- Clients for dApps (e.g. instadapp)
- Developer Tools (e.g. Alchemy, Bison Trails)
- Oracles and Prediction Markets (e.g. Erasure, Augur)
- Community-owned organizations - "will become a lot easier to do with crypo"