There is an “architectural shift” in technology and in the world brought upon by cryptoassets, which many crypto supporters miss, according to Marc Andreessen, co-founder of venture capital powerhouse Andreessen Horowitz (a16z), and founder of Netscape Communications Corporation.
Today, a16z announced a new USD 2.2bn fund to continue investing in crypto networks.
Meanwhile, in a recent interview with economic blogger Noah Smith, Andreessen compared the topic of crypto with the parable of the blind men and the elephant, allowing people to interpret many different parts in many different ways, or use it to make their point. As an example, he gave people seizing on “the money part,” then either glorifying crypto as a new type of monetary system that brings freedom from the nation-state, or “crucify[ing] it as a danger to economic stability and the ability for governments to tax.”
However, while these are interesting arguments, Andreessen stressed,
“I think they all miss a more fundamental point, which is that crypto represents an architectural shift in how technology works and therefore how the world works. That architectural shift is called distributed consensus — the ability for many untrusted participants in a network to establish consistency and trust.”
According to him, the Internet has never had this until now and it will take thirty years to work through all of the things that can be done as a result. While money is the easiest application of this idea, other things that can now be built in theory include Internet native contracts, loans, insurance, title to real-world assets, unique digital goods aka non-fungible tokens (NFTs), and online corporate structures such as digital autonomous organizations (DAOs), among others, the investor said.
This also presents a great impact on and shift in incentives – which further impacts reaching these applications.
Collaborative human effort online so far was either in the form of a literal adoption of real-world corporate norms, such as a company with a website, or an open-source project like Linux that didn’t have any money directly attached to it, said Andreessen.
“With crypto, you can now create thousands of new kinds of incentive systems for collaborative work online, since participants in a crypto project can get paid directly without a real-world company even needing to exist,” he said.
While open-source software development has been great, people are generally willing to work more for money than for free, “and all of a sudden all those things become possible and even easy to do.” And though it will take a few decades to see the results of this as well, “I don’t think it’s crazy that this could be a civilizational shift in how people work and get paid,” said Andreessen.
He also discussed the idea that AI is somewhat a left-wing idea, having centralized machines making top-down decisions, but that crypto is a right-wing idea, having many distributed agents, humans and bots, making bottom-up decisions, he said, citing another prominent venture capitalist Peter Thiel, co-founder of PayPal.
The tech industry has historically been dominated by left-wing politics and today’s big tech companies are intertwined with the US Democratic Party, Andreessen said, noting,
“Crypto potentially represents the creation of a whole new category of technology, quite literally right-wing tech that is far more aggressively decentralized and far more comfortable with entrepreneurialism and free voluntary exchange. If you believe, as I do, that the world needs far more technology, this is a very powerful idea, a step function increase in what the technology world can do.”
As for a16z becoming known for innovating in the space of venture capital itself, Andreessen said that there is something old and something new about venture capital – and this something new includes crypto.
“So we sit at the vortex of this combination of the very old and the very new. It’s certainly possible that venture capital itself gets pulled into this vortex and comes out the other side radically transformed, and in fact, this is what some of the smartest crypto experts are predicting,” Andreessen concluded.
Explore the Trend: Discover Where You Can Spend Your Ethereum in 2021!
Are you a cryptocurrency enthusiast wondering where you can spend your prized Ethereum in 2021? Look no further, because we’ve got you covered! In this article, we’ll take you on a journey to discover the exciting places where you can use Ethereum to make purchases, investments, and more. But before we dive in, let’s have a quick overview of what Ethereum is and why it’s gaining popularity.
What is Ethereum?
Ethereum is an open-source blockchain platform that enables developers to create and deploy decentralized applications (dApps) and smart contracts. Its native cryptocurrency, Ether (ETH), serves as a medium of exchange and also fuels the network. It was created in 2015 by Vitalik Buterin with the aim of providing a platform for developers to build decentralized applications that can be used for various purposes such as DeFi, gaming, social media, and more.
Why is Ethereum Gaining Popularity?
Ethereum has been around for quite some time, but its popularity has been on the rise in recent times. One of the main reasons for this is its ability to support smart contracts. Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into the lines of code. This eliminates the need for intermediaries such as lawyers and banks, making transactions more efficient, secure, and cost-effective.
Furthermore, Ethereum is currently the second-largest cryptocurrency by market capitalization, making it a highly sought-after investment option. Its use in the booming sector of decentralized finance (DeFi) has also contributed to its growth and demand.
Now that we have a basic understanding of Ethereum and its popularity, let’s explore the trend and discover where you can spend your Ethereum in 2021!
1. Online Retailers
One of the largest and most popular online retailers, Overstock, has been accepting Bitcoin as a form of payment since 2014. But now, they have also started accepting Ethereum. This means you can use your ETH to purchase anything from furniture to electronics, home decor, jewelry, and more on Overstock’s platform. The company has also stated that they plan to add more cryptocurrencies, further expanding the options for users to spend their digital coins.
2. Travel and Accommodation
Traveling and accommodation can be expensive, especially if you’re planning a trip abroad. Fortunately, there are several travel agencies and platforms that now accept Ethereum as a form of payment. CheapAir, a popular online travel agency, has been accepting Bitcoin payments since 2013 and has recently added Ethereum to its list of accepted currencies. Another platform, Travala, offers a wide range of travel and accommodation options that can be booked using Ethereum.
3. Online Gaming
Online gaming has been on the rise in recent years, and the use of cryptocurrencies has made it even more exciting. With Ethereum, you can purchase in-game items, upgrades, and even whole games. Platforms like Bitrefill and Enjin Marketplace allow users to buy gift cards and games with their ETH. And with the rise of blockchain-based gaming, your Ethereum can also be used as in-game currency or to invest in virtual assets that hold value within the game.
4. Real Estate
Real estate is another industry that has embraced the use of cryptocurrencies, including Ethereum. The advantage of using Ethereum to purchase properties is that it eliminates the need for intermediaries like banks, making transactions faster and cheaper. Several real estate companies worldwide now accept Ethereum as a form of payment for buying, renting, or investing in properties. Some of these include Propy, a global real estate marketplace, and Bitcoin Real Estate, a platform dedicated to selling properties using digital currencies.
5. Peer-to-Peer (P2P) Marketplaces
P2P marketplaces have been gaining popularity globally, and the use of cryptocurrencies has only accelerated this trend. With P2P marketplaces, users can buy and sell products and services directly with one another, without the involvement of intermediaries. This creates a more cost-effective and efficient way of trading. Platforms like OpenBazaar and Bitify allow users to use Ethereum to buy and sell various products and services, from electronics to fashion items and more.
Conclusion
Ethereum has come a long way since its inception and is now widely recognized as one of the leading cryptocurrencies in the world. Its growing popularity and acceptance in various industries have created a multitude of opportunities for users to spend their ETH. From online retailers to travel, real estate, and P2P marketplaces, the possibilities are endless. So, go ahead and explore the trend by using your Ethereum to make purchases, investments, and more in 2021. Happy spending!
