The Potential of Blockchain Technology

-Compound, for example, is a lending protocol built on ETH with $10b+ of crypto available for borrowing. The creators could go away tomorrow and the code will still run.

-Think of blockchains as a new kind of computer that enable new capabilities

-This is similar to the modern model of video games with microtransactions

What is DeFi all about? Modernizing, disintermediating (banks etc.), reducing layers of fees in the middle. Transparency. This is a big misconception. People think it's opaque and used for criminal activity. Everything in blockchains is open...

-The primary new capability is the ability to write code that allows you to make commitments about how a system will behave in the future

For example, BTC's value is enabled its scarcity. This scarcity is ensured through the code and design of BTC itself. There isn't a central party that can change the rules on users and take the supply beyond 21m coins.

-Has not lived up to expectations as a pmt mechanism. Fees and vol are obstacles

-You can also make commitments to other network participants such as developers. There's no platform that can change the rules, take rates, APIs, etc.

-To analogize, think of the iPhone in 08. To see the opportunity, you had to imagine 1) that weaknesses get mitigated (it gets faster, service gets better), and 2) entrepreneurs will take new features (like GPS) and create new ideas with them