Coinbase CEO Brian Armstrong recently shared his vision for the future of cryptocurrencies, presenting ten ideas that he believes could revolutionize the industry. In a blog post and presentation, Armstrong expressed his excitement for these concepts and urged developers to take advantage of the current bear market to bring them to life.
One of the ideas Armstrong discussed is the creation of a “flatcoin,” which he described as a decentralized stablecoin that could preserve purchasing power by tracking inflation. This concept could be backed by a basket of assets or utilize an algorithmic approach. Armstrong pointed to services like Ampleforth and Truflation as potential models for achieving this goal.
Armstrong also highlighted the concept of “on-chain reputation,” a system that assigns reputation scores to wallet addresses or Ethereum Name Service (ENS) names based on on-chain activity. This reputation system could be used for lending, ratings, and fraud prevention, similar to Google’s PageRank algorithm.
Additionally, Armstrong expressed interest in “onchain ads,” which would be a Web3 version of advertisements that pay out based on on-chain actions rather than traditional view or click-based metrics. These ads could utilize smart contracts to specify payouts and allow users to choose which ads to display.
Another concept Armstrong discussed is “onchain capital formation,” which aims to democratize fundraising by allowing startups and Initial Coin Offerings (ICOs) to raise money on-chain in a compliant and trusted manner. Armstrong believes that this could unlock immense entrepreneurial energy worldwide by reducing friction in the capital formation process.
Coinbase’s CEO also expressed hope for a marketplace dedicated to crypto jobs and tasks. Such a platform would allow individuals to find crypto-related job opportunities globally and enable cross-border payments in cryptocurrencies, eliminating payment frictions. Coinbase recently partnered with X (formerly Twitter) to launch a job posting feature, indicating their commitment to this idea.
Armstrong’s sixth idea revolves around providing privacy for layer 2 transactions in the cryptocurrency space. While transparency is crucial in certain cases, Armstrong acknowledges that most transactions should not be public. He envisions bringing private transactions to layer 2 protocols instead of confining them solely to public blockchains.
Other ideas Armstrong shared include the development of a fully on-chain peer-to-peer exchange, on-chain games with asset ownership, and real-world asset tokenization. On-chain games already exist, allowing players to truly own in-game assets as non-fungible tokens (NFTs) and creating vibrant in-game economies. Real-world asset tokenization, such as tokenized stocks and real estate, is also gaining traction globally.
Armstrong concluded his presentation by discussing the concept of “Software for Network States,” which would provide tools to help startup cities and communities manage governance, voting, taxes, and services on-chain. He believes that many entrepreneurs will look back in five years wishing they had started a crypto company in 2023 and emphasized that bear markets are an ideal time for building.
Coinbase is preparing for its inaugural Coinbase Ventures Builder Summit in California, scheduled for October. Armstrong’s public appearance and the sharing of his ideas may serve as an effort to generate interest and excitement for the upcoming event. With these innovative concepts, Armstrong hopes to inspire developers to leverage the current market conditions to shape the future of cryptocurrencies.
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