Blog

My response to Kai Stinchcombe

12/25/2017

The anniversary article reflecting on Ten Years of Bitcoin triggered a storm of heated debates. And no wonder–it was a great write-up launched at the best possible time—the calm silence before Christmas, when no one is working and everyone has plenty of time to lazily wander around the house and wonder, with a craving for juicy news.

Kai makes a number of excellent arguments, but he seems to be knocking at the window while missing the wide open door.

 

Let’s start with the basics...The “Ten Years” Argument

It’s common knowledge that Bitcoin was first released at the end of 2009 (version 0.1). A number of bugs were discovered and resolved between 2009 and 2013. Looking at the issues that were addressed back then (transaction malleability, unexpected network fork, etc.), it is hard to associate the word “stable” with it at any time before early to mid 2014, even with the caveats and disclaimers one often uses to handwave road bumps with any new technology. For all practical purposes, the age of Bitcoin as an applicable, functional technology rather than an abstract concept is less than three to four years old.

By all practical measures, three to four years means a technology is still in its infancy. ARPANET, the precursor to the Internet, was established as early as in 1983, but it took seven to ten years before we saw the explosive growth of the 90s. That being said, someone in 1994 could have written a perfectly logical article titled “Ten years later, no one’s come up with a use for the Internet,” for example.

It took another ten years for fundamental changes in travel, stock trading and a number of other industries to take place. In fact, the overwhelming shift to online shopping over brick and mortar didn’t happen until 2010 or later.

Social media and the online advertising industry that it facilitated didn’t hit their stride until the mid-2000s. After that it took another 10 years for online advertisement to finally wrest control from TV and print, only really occurring in the last year or two. All in all, it took 20 years or so for Internet to deliver on its promises. Why would be Bitcoin or any other manifestation of blockchain be any different?

 

Disruption of existing industries: payments, stocks, banking, distributed storage…

If history offers any lessons, the disruption of an existing industry does not happen simply as a result of the invention of new technology. New business models, fueled by the technology or creative applications in the context of existing models, are instead often the cause of a disruption to the paradigm. It’s not that unusual for existing players to embrace and prosper with new inventions rather than allowing themselves to become obsolete.

We still buy cars from dealers—but the majority of car shopping happens online. Did dealers go out of business? Not quite. The smarter ones embraced “the online” to drive even more sales than before.

Stock trading — today many investors trade using online brokerage accounts. Charles Schwab saw lots of early success as a pioneer in online trading. Did any broker go out of business as stock trading shifted to the internet? I’m sure some did. Did others survive and become even stronger—that’s not even a question.

Bitcoin and blockchain are no different than other technology innovations we’ve seen before. In fact, history is repeating itself right in front of our eyes.

Nasdaq and a few others united behind R3—the consortium looking to enable trading on the blockchain. The hope is to simplify the stock settlement across market participants—a manual, involved process that takes up to three days to complete after the purchase. Yes, you read that right—it takes around three days for your one-click purchase to finally settle and register in all affected books. Could the blockchain provide a superior alternative? It’s easy to see that it should be explored, at least.

Visa and MasterCard operate a global network of connected and mutually trusted nodes. Lots of work goes into certification, audit, and secure operation of individual nodes. Could blockchain ease some of the requirements as a result of its trustless model? Absolutely! Is it possible that payment costs will be lower as a result? No doubt. Does it mean the world of plastic cards must switch to the blockchain for each and every payment? Absolutely not!

There is no need to consider extremes—no need to aim for the extinction of a business or a vertical for blockchain to succeed. There are plenty of opportunities to compliment, enhance, and extend.

 

Where are the opportunities?

Joe—the cool guy—launched a file storage service and offers it cheaper than S3. Would you trust him with your sensitive files? Not likely. What if the payment for Joe’s service was cryptographically contingent on your retrieval of files and matching of hash codes? We just replaced the trust to the unknown party Joe with trust in the integrity of a decentralized network, supported by hundreds of billions in individual investments that is unlikely to go away anytime soon. Clearly, there is an opportunity for Joe and his customers.

Joe launches a Kickstarter campaign on a new, cool IOT device. The campaign goes well, devices are shipped, Joe maintains a server with device registration. Suddenly Joe goes out of business, taking the servers with him and rendering the devices useless. Would it be better if the registration data was stored in a blockchain, eliminating the risk of owning a device that outlived the manufacturer?

More on this point—the number of accounts and registration records is exploding with the growth of the consumer and industrial IOT. Account maintenance is becoming a serious expenditure, affecting margins and profitability. At the same time, it is almost never a core business function for an IOT maker, who would happily hand it over elsewhere. Clever developers at Xage (https://xage.com/) have already deployed an account management solution for industrial IOT (Disclaimer: I am not involved with Xage in any form or fashion).

Despite the hysteria surrounding the Experian story, anyone with meaningful experience in corporate IT would say that Experian is not any worse than the average. In fact, not better or worse, just average. The issue is not that they should have been better. It is rather the enormous concentration of data creating unbearable risks.

In absence of better alternatives, Experian must be the collector of records and the custodian, compute FICO and perform a number of other functions that leads to enormous risk concentration. An alternative that stores records on the chain and only infrequently opens access to Experian and other parties based on explicit customer authorization could be much more secure and reliable, leading to a clear win-win. Notice that credit ratings did not go away, credit agencies did not get replaced with the blockchain, but rather agencies became a participant in a new engagement model.

I could go on for hours, but hopefully the overall premise is clear by now:

  • Bitcoin and blockchain should not be evaluated in the context of head-to-head competition looking to drive incumbents into obsolescence.
  • Similar to the Internet and other innovations, Bitcoin and blockchain will take time to mature.

 

Technologies do not change the world, business models do.

Comments

Submitted by aureliacq18 on Mon, 07/25/2022 - 14:04

Free Porn Galleries - Hot Sex Pictures
http://french.porn.power.lexixxx.com/?jaycee
upload porn gangbang multiple anal porn star directory teenie tina zelda imagefap porn x beaver porn sex video porn torrents

Submitted by aureliacq18 on Mon, 07/25/2022 - 16:28

Hot photo galleries blogs and pictures
http://hendrix69gallfreeporn.hotnatalia.com/?ericka
tiny angels porn models hot porn babe galleries porn star tiger lilly surf life saving porn black phat ass free porn

Submitted by aureliacq18 on Mon, 07/25/2022 - 18:19

Girls of Desire: All babes in one place, crazy, art
http://brittnyblewporn.armstrong.amandahot.com/?alize
black porn free video free online porn no signup needed free porn tall erotic solos sister porn galor free deepthroat nose cum porn

Submitted by aureliacq18 on Mon, 07/25/2022 - 19:27

New sexy website is available on the web
http://suisidegirlpornwildwoodcrest.energysexy.com/?jade
filme porn 2007 jelsoft enterprises ltd german porn school bollywood film actress porn indian sex porn movies online porn videpos

Submitted by aureliacq18 on Mon, 07/25/2022 - 20:26

New hot project galleries, daily updates
http://freepornextermegeronimoestates.hotnatalia.com/?ayanna
maria belluci porn jewell marceau bondage porn star flash movies porn schoolgirl gag the best free lesbian porn sites tamil aunty sex porn videos

Submitted by aureliacq18 on Mon, 07/25/2022 - 21:44

College Girls Porn Pics
http://baidlandmozzporn.topanasex.com/?emmalee
free gay brazilian porn japanese idol galleries porn young teen anal porn galleries black on black gay porn milk sucking porn pics

Submitted by aureliacq18 on Tue, 07/26/2022 - 00:09

Hot galleries, daily updated collections
http://lompoc.interractial.porn.adablog69.com/?ayanna
free mercy porn movies elle brook porn piraetsxxx porn download sideways 69 porn tahoe porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 00:15

Hot new pictures each day
http://gfpornitouch.cascadia.alypics.com/?eve
free gay twink porn movies ccelebrity porn rehdead country porn free jpeg porn cartoon vaginal pear torture videos porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 04:35

Hot teen pics
http://mount.sterling.sex.sexjanet.com/?macey
selma hayek porn videos free asian porn red tube free mobile full legnth porn mobile streamjing dp porn emma spellar porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 06:33

Sexy photo galleries, daily updated pics
http://blowjob.sexjanet.com/?eliza
free porn without registaration kirstie newman porn pics porn star models quiktime porn vids 8teen xxxx porn tube

Submitted by aureliacq18 on Tue, 07/26/2022 - 06:38

Enjoy our scandal amateur galleries that looks incredibly dirty
http://lamoille3gpppornvideos.kanakox.com/?katelin
roxanne milana porn videos younge black teen porn hallie barry porn steriod porn desperate passions soft porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 08:38

Hardcore Galleries with hot Hardcore photos
http://hornywifepornlinda.kanakox.com/?meredith
juhi chawla porn porn grant young forin porn naked teen porn unsensored watch free xxx porn on tv

Submitted by aureliacq18 on Tue, 07/26/2022 - 08:47

Best Nude Playmates & Centerfolds, Beautiful galleries daily updates
http://wapella.alypics.com/?aniyah
fbb porn fucking men grndpa porn jordan james porn porn quiktime player mastrabating you porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 09:07

New hot project galleries, daily updates
http://virginville.gaypornboy.alypics.com/?susana
county line porn store cutie porn videos leg porn vids porn films for couples christina aguilera porn fakies

Submitted by aureliacq18 on Tue, 07/26/2022 - 14:29

Girls of Desire: All babes in one place, crazy, art
http://freepornnocrap.ronald.hoterika.com/?stephanie
free porn older woamn porn teens vids upload ameteur porn pics and vids college porn pixtures little orral annie porn video

Submitted by aureliacq18 on Tue, 07/26/2022 - 14:30

Enjoy daily galleries
http://chipley.amandahot.com/?reagan
nashville por xxx auditions for porn films videos american idol winners porn scandal pinay celebrity porn vidios the simpsons family porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 17:43

Browse over 500 000 of the best porn galleries, daily updated collections
http://celebrity.porn.moesexy.com/?madyson
hard mature nipple porn free porn passwords that work 2010 voyeur porn rich people free porn videos with hot chicks mature bbw women free porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 17:46

New project started to be available today, check it out
http://spencerville.bustyddporn.hoterika.com/?jaiden
free porn sex in public porn tube tashana free bart simpson porn against our will video porn free free shemale porn tube videos

Submitted by aureliacq18 on Tue, 07/26/2022 - 18:38

Young Heaven - Naked Teens & Young Pornb Pictures
http://sparta.asian.miyuhot.com/?riley
free pussy pump porn video porn princesses free all daily updated porn porn star brunette ron jeremy photos of female male porn stars

Submitted by aureliacq18 on Tue, 07/26/2022 - 20:22

Hot sexy porn projects, daily updates
http://tucker.galerisporn.sexjanet.com/?daniela
interracial pregnant porn pictures porn encyclopaedia most visied porn site redtube kassidy porn father watches son porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 20:34

Dirty Porn Photos, daily updated galleries
http://shoreham.piramidporn.adablog69.com/?jacey
free no money porn free porn fideo amy rose hedgehog porn india black porn star the runaway porn

Submitted by aureliacq18 on Tue, 07/26/2022 - 22:39

Hot new pictures each day
http://waterviewmobliefreeporn.danexxx.com/?justice
list of undiscovered porn big breasted porn starts lesbian porn videps popular free porn arnold gay porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 02:30

Dirty Porn Photos, daily updated galleries
http://granny.porn.west.liberty.hoterika.com/?virginia
wives of porn amature video porn eric smith porn sites the frat porn website free amateur skinny women porn pictures

Submitted by aureliacq18 on Wed, 07/27/2022 - 02:39

Big Ass Photos - Free Huge Butt Porn, Big Booty Pics
http://blindsidepornokoboji.moesexy.com/?amber
hot anime henity porn porn search engine paysite free cartoon porn mobile videos free brother an couzin porn fox porn videos

Submitted by aureliacq18 on Wed, 07/27/2022 - 04:53

Teen Girls Pussy Oics. Hot galleries
http://cfnm.porn.gigixo.com/?kathleen
free amateur porn streams portugese porn clips teenager porn clips banned porn dvd free tee spanking porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 04:59

Scandal porn galleries, daily updated lists
http://crossville.massage.porn.amandahot.com/?nyla
free porn videos dans movies amy fisher porn view exotic porn pics private spy home voyeur porn laura esposto porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 07:35

Girls of Desire: All babes in one place, crazy, art
http://offuttafbside.porn.lexixxx.com/?tiana
old woman young porn puma suede porn star whole body imaging porn granny extreme porn holly sampson porn streams

Submitted by aureliacq18 on Wed, 07/27/2022 - 08:32

Best Nude Playmates & Centerfolds, Beautiful galleries daily updates
http://winters.grnyporn.alypics.com/?dana
brook lopez porn anatomia porn porn shearch database on the phone porn videos carman south park porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 08:33

Sexy photo galleries, daily updated pics
http://hairy.porn.topanasex.com/?kara
classic porn film banned porn top 100 arcadia lake porn huang porn film free tight painfull virgin porn clips

Submitted by aureliacq18 on Wed, 07/27/2022 - 12:31

College Girls Porn Pics
http://corder.jsutandy.com/?aliyah
hard dick porn mom and son porn net look too young porn free mp4 porn to download porn movies of married women fucikng

Submitted by aureliacq18 on Wed, 07/27/2022 - 14:23

Nude Sex Pics, Sexy Naked Women, Hot Girls Porn
http://infrayoungporn.oakharbor.lexixxx.com/?jaida
xxx kim possible porn dildo women porn image photo school teacher and student porn videos pay per veiw thug porn best porn gate

Submitted by aureliacq18 on Wed, 07/27/2022 - 16:10

Sexy pictures each day
http://latina.sex.madison.gigixo.com/?janae
tiava porn teen cum exchange porn free streams porn movies clara vintage porn tiffany minx porn tube

Submitted by aureliacq18 on Wed, 07/27/2022 - 16:14

Sexy tgeen photo galleries
http://voyeur.porn.hoterika.com/?jocelyn
women in sexy dresses porn cum covered glasses porn video how to become amale porn star harry potter porn het shemale watch porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 16:31

Hardcore Galleries with hot Hardcore photos
http://loachapoka.footjob.miaxxx.com/?cristal
oot porn reccess cartoon porn panty rubbing porn afro bbw porn free downloadable porn goldn shower

Submitted by aureliacq18 on Wed, 07/27/2022 - 18:45

Enjoy our scandal amateur galleries that looks incredibly dirty
http://celebrity.porn.alypics.com/?abbigail
granny strapon porn tubes free totally spys porn comics 100 percent free cam porn chinese xxx teens porn movies electrocution porn

Submitted by aureliacq18 on Wed, 07/27/2022 - 20:10

Hot galleries, daily updated collections
http://70spornpreviewfloodwood.adablog69.com/?andrea
free amautre porn when is porn unhealthy funny videos porn dark studios dark robbery porn old man porn tubes

Submitted by aureliacq18 on Wed, 07/27/2022 - 20:11

Sexy photo galleries, daily updated pics
http://capulin.miyuhot.com/?arianna
ma e celebrity porn little lupe porn first time married porn download asan porn torrent black transvestites porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 00:06

Big Ass Photos - Free Huge Butt Porn, Big Booty Pics
http://divideromanricporn.alexysexy.com/?kaiya
tiny 16 girls porn orgasm clip video watching porn porn forum freeones free heather hunter porn vids gina lynn free porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 00:27

Hot new pictures each day
http://frionabobi.porn.hotnatalia.com/?ashlyn
tiny drunk teen porn make your own 3d porn star deeper 7 porn free scene emo porn porn dump amateur

Submitted by aureliacq18 on Thu, 07/28/2022 - 02:54

Hardcore Galleries with hot Hardcore photos
http://ebonyhanjobporn.keukapark.alexysexy.com/?kaylyn
free legal porn video online porn stream high quality young teenie porn video free chubby big tit porn videos porn hitomi

Submitted by aureliacq18 on Thu, 07/28/2022 - 02:55

Young Heaven - Naked Teens & Young Porn Pictures
http://smithville.massage.sex.sexjanet.com/?mackenzie
free porn tbe free interracial porn sites adult gay male porn video best msn porn tube porn sites crack codes

Submitted by aureliacq18 on Thu, 07/28/2022 - 04:13

Free Porn Pictures and Best HD Sex Photos
http://boston.beach.hotnatalia.com/?julie
mp4 porn site plump free amamteurs porn 2001 pics free anime cartoons porn friends parody porn free hardcore porn lesbian

Submitted by aureliacq18 on Thu, 07/28/2022 - 05:20

Hot galleries, daily updated collections
http://gabyamateurpornharalson.energysexy.com/?annabella
brainwash porn porn codes passwords porn star name legacy the sims 2 porn business mods young tube porn free

Submitted by aureliacq18 on Thu, 07/28/2022 - 08:32

Sexy photo galleries, daily updated pics
http://german.porn.lexixxx.com/?yesenia
porn fran ais xhamster bbw wife porn videos best torrent search engine for porn free porn movie shareing vannesa marcell porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 12:30

Hot teen pics
http://dating.amandahot.com/?mariela
freeporn on porn hub sarah palin porn pix young porn futureteens free famous cartoon comix porn 34f natural porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 13:38

Hot photo galleries blogs and pictures
http://milf.sex.miyuhot.com/?reese
vintage porn movie clips lock porn sites japenese school girls porn mature smokers free porn middle aged women porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 13:40

Free Porn Galleries - Hot Sex Pictures
http://towerlakes.redheadteenporn.hotnatalia.com/?taylor
porn star experience escort streaming porn redtube spankwire bonnie hunt porn home porn video clips lesbian african tribe xxx porn video

Submitted by aureliacq18 on Thu, 07/28/2022 - 14:26

Big Ass Photos - Free Huge Butt Porn, Big Booty Pics
http://paintsville.grandmaboyporn.hoterika.com/?marisa
porn vids tigth pussy gets fucked first time stranger fuck porn tube you porn big loa ozawa porn free online porn interacial

Submitted by aureliacq18 on Thu, 07/28/2022 - 16:21

Hardcore Galleries with hot Hardcore photos
http://barzinporncortez.gigixo.com/?ariana
mitzi porn hottest porn stars sex erase history porn assault porn free hardcore iphone porn

Submitted by aureliacq18 on Thu, 07/28/2022 - 16:24

Hot photo galleries blogs and pictures
http://fotporncibola.miaxxx.com/?taylor
female anal porn trailers porn sites by minute pussy soft porn photo galleries free gay porn movie cum southaven mississippi porn star

Pages