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

enjoy new website

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 15:22

Young Heaven - Naked Teens & Young Porn Pictures
http://sesser.amateur.alypics.com/?autumn
girls haveing sex porn pictures you porn beautiful agaony tna flix homemade porn paul donohoe gay porn pics adult simpsons porn

Free Porn Pictures and Best HD Sex Photos

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 15:54

New super hot photo galleries, daily updated collections
http://serakporn.edneyville.moesexy.com/?anahi
free porn video love the hilary duff kissing porn star best porn fantasy free female masterbation porn videos teen squirt porn

New sexy website is available on the web

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 16:28

New super hot photo galleries, daily updated collections
http://london.lexixxx.com/?kasey
long young porn tube movies 100 free full length porn sites free strange 3d porn justin taylor gay porn wiki sexy tranny tg porn

New sexy website is available on the web

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 16:30

Sexy pictures each day
http://shawniepornstar.puntasantiago.miaxxx.com/?jaliyah
free old fashioned porn exanti porn why does japanese porn invlove tentecales ugly babes porn free man an dog gay porn

Free Porn Pictures and Best HD Sex Photos

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 18:13

Scandal porn galleres, daily updated lists
http://carefreeyoujazzporn.adablog69.com/?marisol
orgasm you porn stephonie powers porn star let my puppets cum porn movie young russian girl porn phinies and pherb porn

Enjoy daily galleries

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 18:20

Free Porn Pictures and Best HD Sex Photos
http://rirstsexporn.buiescreek.miyuhot.com/?nikki
femdom porn free mobile rijp vrouw porn free amatur milf porn vids new york porn productions danika porn star

Free Porn Pictures and Best HD Sex Photos

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 19:11

College Girls Porn Pics
http://coolegepornpics.petaluma.alypics.com/?maria
jlo porn hub porn star devious bdsm extreme porn free parody porn teen titins free porn video secure site

Enjoy daily galleries

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 21:16

Hot new pictures each day
http://holocosplaypornmcbain.miyuhot.com/?alissa
porn mined free ebony porn movies dick bustin redhead porn teen porn greedy for money porn star josln james

New super hot photo galleries, daily updated collections

Permalink Submitted by aureliacq18 on Sat, 06/18/2022 - 22:17

New super hot photo galleries, daily updated collections
http://trumbull.pornbigload.energysexy.com/?alysha
dixie trailor park porn videos 1 minute porn previews porn mavies vintaage porn video super bowl porn flick

Big Ass Photos - Free Huge Butt Porn, Big Booty Pics

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 00:10

My new hot project|enjoy new website
http://hardin.hardcore.porn.energysexy.com/?kaylyn
very tiny porn videos laura blume porn anorexic belimic porn cloe sevigny porn best porn tube in one

Teen Girls Pussy Pics. Hot galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 01:24

Scandal porn galleries, daily updated lists
http://brendadirtyalporn.kanakox.com/?maegan
you porn blojob japonese animeted porn free lesbian porn to watch now anima porn moive free porn college girl

Daily updated super sexy photo galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 04:11

Browse over 500 000 of the best porn galleries, daily updated collections
http://trophy.clubartporntubes.alexysexy.com/?kaila
sex porn tube stes free porn mature clips free vintage porn galleries porn de tetonas nipple piercing porn video tube

Hot galleries, daily updated collections

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 04:26

Hardcore Galleries with hot Hardcore photos
http://springgardensfreegayserbporn.danexxx.com/?colleen
x x x porn tube me and my boyfriend mom porn porn on a farm amateur porn coeds asia carrera free porn

New project started to be available today, check it out

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 04:29

Best Nude Playmates & Centerfolds, Beautiful galleries daily updates
http://porn.for.women.waterman.alexysexy.com/?kallie
blonde norwegian porn mature black porn tube anaglyph 3d porn stunning british shemale porn free amateur porn clps

New project started to be available today, check it out

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 04:31

Enjoy daily galleries
http://banglapornsiteslibertyhill.sexjanet.com/?riya
what is kid porn innitials robot anime porn selena gomez porn naked watch kim kardashian porn videos deepest darkest porn

Sexy photo galleries, daily updated pics

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 06:06

Free Porn Galleries - Hot Sex Pictures
http://vegatibleporn.hayes.amandahot.com/?erika
porn videos without any registration street porn video clips free porn videos from india free porn videos password join hardcore free rough porn

Teen Girls Pussy Pics. Hot galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 07:00

Enjoy daily galleries
http://avon.miyuhot.com/?jocelyn
free allysa hall porn videos cartoon porn no account kim devine porn star over 50 porn pics free young ebony porn videos

Free Porn Galleries - Hot Sex Pictures

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 07:33

Hot galleries, daily updated collections
http://freexmenpornak.chin.miyuhot.com/?madisen
zombie porn videos rosalia porn young blonde schoolgirl porn chubby girl porn clips porn videos no membership required

New sexy website is available on the web

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 09:42

Enjoy our scandal amateur galleries that looks incredibly dirty
http://70spornpreviewfloodwood.adablog69.com/?renee
elefant porn best quality free porn pictures free streaming porn 15 minutes general free porn porn paintball

Girls of Desire: All babes in one place, crazy, art

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 10:25

New super hot photo galleries, daily updated collections
http://brookviewpornpese.adablog69.com/?marisa
woody porn ira young porn sons friends porn videos busty mature porn tube england porn magazines

Dirty Porn Photos, daily updated galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 12:51

Sexy photo galleries, daily updated pics
http://chewton.massage.sex.miaxxx.com/?teresa
teen strapon porn free porn solo video tube porn pictures of sport girls sexy hardcore brunette milf porn wasted fucked porn

Teen Girls Pussy Pics. Hot galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 13:26

Enjoy our scandal amateur galleries that looks incredibly dirty
http://milf.porn.sexjanet.com/?megan
free porn with no viruses why do men hide porn tony dicillo porn aerie porn chorley porn photo

Young Heaven - Naked Teens & Young Porn Pictures

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 14:13

Sexy photo galleries, daily updated pics
http://nortonvillepornstereogram.hoterika.com/?nyla
we are making porn hardcore porn pictures stolen rose bud porn eve roberts porn hacked porn accounts

Nude Sex Pics, Sexy Naked Women, Hot Girls Porn

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 15:11

Sexy photo galleries, daily updated collections
http://sheridan.gigixo.com/?jaida
nerd and hottie porn naked ebony girl porn movie dp porn archives fantastic cc porn free masterbation orgasm porn

Free Porn Galleries - Hot Sex Pictures

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 16:05

College Girls Porn Pics
http://french.porn.elkins.energysexy.com/?breanna
celibrities porn pamila anderson free iphone extreme transexual mistress porn paul donahoe porn video shrek anime porn streaming ameteur latina porn

Young Heaven - Naked Teens & Young Porn Pictures

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 16:26

Hardcore Galleries with hot Hardcore photos
http://pornsexshow.wildrose.lexixxx.com/?mattie
rusia porn fat girl porn sites father daughter comic porn demi delia porn star free porn jessie janes

Sexy teen photo galleries

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 16:28

Free Porn Galleries - Hot Sex Pictures
http://big.tits.amandahot.com/?alicia
nexx porn movies free porn school role play cinderella soft core porn young california porn star has aisd mr peepers homeade porn

Hot sexy porn projects, daily updates

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 17:17

My new hot project|enjoy new website
http://alannapornstar.moorcroft.alexysexy.com/?maya
nikki porn week bill henson art or porn african porn vedios big tit soft porn la models porn

Hot new pictures each day

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 18:27

My new hot project|enjoy new website
http://corrales.gigixo.com/?darlene
fdee celebrite porn free ebony teen porn sites suffocation tube porn streaming porn videos free womens tube porn

enjoy new website

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 18:40

Free Porn Galleries - Hot Sex Pictures
http://dwight.mission.webcam.porn.miaxxx.com/?deborah
porn state saved by the bell porn star porn studios essex 3d monster porn fantasy granny porn creampie

Big Ass Photos - Free Huge Butt Porn, Big Booty Pics

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 19:00

New hot project galleries, daily updates
http://tiburones.alexysexy.com/?meredith
cult porn live gay anime porn videos redhead porn movie thumbs milf home porn mature chick porn

Hot new pictures each day

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 20:04

Sexy pictures each day
http://cobb.moesexy.com/?kaylyn
husband videos wife porn chanel porn star milf 100 free porn ads amature porn search big dick floridas biggest porn produce

College Girls Porn Pics

Permalink Submitted by aureliacq18 on Sun, 06/19/2022 - 20:17

Browse over 500 000 of the best porn galleries, daily updated collections
http://hollyberryporn.meadowbrook.kanakox.com/?izabella
little tits little pussy sex porn boston baby dolls porn black man kissing white girls porn fairy tale literary porn free full length porn mega stes

My response to Kai Stinchcombe

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

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

Where are the opportunities?

Technologies do not change the world, business models do.

Comments

Pages