And here comes cryptocurrency in an unexpected way. It feels weird discussing cryptocurrencies in an article about trust. Because, on the surface, cryptocurrencies may be the most unreliable thing on the planet right now.
I’ve been a bit obsessed with cryptocurrencies the last few years, not because I’m trying to get rich or destroy the US government or anything, but because cryptocurrencies are at the intersection of the most basic social issues. It is from. of trust.
Today, it is almost impossible to find calm discussions about cryptocurrencies on the Internet. Supporters sound like a cult heralding an imminent utopian arrival. Critics are hysterical over exaggerated claims about the environment, the black market and inequality. And, of course, there’s always an aversion to new technology. I get the exact same criticisms: “This is a scam”, “It doesn’t work”, “It’s a fad and no one will use it in 10 years”. Normalized to 90’s Internet, 50’s TV, 19th century telephones and more.
People look at codes and base their interpretations on them already Instead of approaching the world as something that could change the truth, we believe it to be the truth about the world.
I find cryptocurrencies so polarizing and confusing because they seek to innovate the most fundamental aspect of human civilization: trust. And because trust is fundamental to everything we do, cryptocurrencies are both very exciting and very scary.
Fundamentally, the technology behind cryptocurrencies is an attempt to build an immutable computational network through the clever use of cryptography and decentralization.
It sounds technical and very abstract, but the implications are incredible.
If I need a loan today, I will go to the bank. You are sitting with a loan officer. You talk and hand over credit reports, employment certificates, tax returns, utility bills, etc. to prove that everything you say about yourself is true. That means you can trust them.
This lone banker is essentially verifying your credibility on behalf of her institution. I’m here. The main reason is that you have proven yourself credible through other institutions such as school, employment, lack of debt, etc.
But these bankers, like the reports you collect from credit bureaus (or landlords, employers, etc.), are just middlemen in the game of trust. They’re there to make sure you’re not a bad actor. and, millions The percentage of people in the world whose only job is verifying authenticity. Insurance companies, banks, law firms, universities, regulators, and government programs have huge office buildings full of people doing this credible verification work all day, every day.
And they do this because there is no better way. And with these groups of thousands of people having to do this, the process is perishable because it’s human.
Encryption will automate the elimination of millions of trust verifiers, just as Uber automated the elimination of taxi drivers. You might think it’s amazing. You might think it’s scary. But it cannot be denied. That’s really big.
You can wave your fist and plead about job security, income inequality, etc., but at the end of the day, you and I and everyone else loves Uber, loves Uber, and uses Uber for the same reasons. Use Uber in It makes our life 100 times easier.
Because the current customer experience of dealing with a human-driven agency and constantly validating trust is a never-ending nightmare. Getting that loan requires weeks of phone calls, meetings, and hundreds of pages of paperwork, all of which contain highly personal and sensitive information.
Because institutions are people, and people are always corruptible and weak. His one guy pissed off at the DMV literally prevents him from driving legally. All it takes is one bastard banker on a power trip to ruin your ability to buy a house.
Special interests between large banks, insurance companies, law firms and governments are both inevitable and corrosive.
Because ultimately, privacy and freedom of expression matter. many.
That’s why I believe crypto is inevitable.
Unavoidable. But it’s troublesome…
To rebuild the world’s network of institutions from scratch, we would have to make all the mistakes institutions have made in the 5,000-year history of civilization. Venture capitalists often say that cryptocurrencies are like “startups picking up speed.” Say it’s more than that. It is the history of a rapidly advancing system.
Cryptocurrencies are testing hundreds of different types of governance models, security protocols, capital allocation, wealth redistribution and brand building in the market. What happened in the real world in 100 years can happen in a few months in the crypto world. And eventually catch up. Governance systems will be better, faster, more reliable, more secure, and more resistant to censorship. But some of that market testing has been exposed to hundreds of hacks, ponzies, rug pullers, saboteurs, scammers, rip-offs and stupid dog coins.
But they have to happen. Each one is an experiment. And with each failed experiment, technology advances at a breakneck pace.
My brain enjoys volatility and chaos. I also enjoy technology and money. So my brain enjoys crypto. I own a bunch and have for years. But I also understand why many people don’t and why many don’t. I also understand people who are afraid of that possibility. Ultimately, automating and upgrading trust-validating agencies will require rebuilding and/or replacing them. And those institutions are unlikely to go quietly.
If you’re like me, I’m experimenting in the NFT space by splitting and launching one of my books on the Ethereum blockchain. and how I share my creativity with my fans and readers. If you would like more information or would like to join the early participants list, Click here for the project.
If you hate all this shit and think I’m brainwashed or something, that’s cool too. I don’t give a fuck I know, Shocker. Hopefully, at least my musings turned out to be interesting or thought-provoking.