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and obviously that's one area where we're really excited about-
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with respect to say app-
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they're not just simply rent seeking tokens-
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they actually provide a valuable service within the decentralized network or blockchain enabled project. that-
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so, something like auger with a rep, is it an easy example that comes to mind.
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those are some of the characteristics that we look for. not getting too much into specific projects because there's so many in the space that are really interesting, right?
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because i think the number one problem i see with some projects in the space is that the token-
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when it's not tied to the core action of the network that is being built.
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the token really doesn't make any sense in that case. so-
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what i think is so amazing is how easy it is to create an erc-20 token.
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that's what i love, is that there's so many different experiments happening and i think it will take a while. and a lot of projects needing to fail and others-
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and to olaf's point there-
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the token, the value of the token will grow corresponding to either innovation-
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network, and thus we always look for the potential for network effects.
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and i don't want to, i'm kind of hamfistedly plagiarizing, a good friend of mine-
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a lot of the time they aim to disintermediate a critical actor in a two-sided marketplace-
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so it seems like there's no cost of provision for airbnb. it
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seems like why don't you just put your house on the internet for rent-
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someone rents it from you and everyone's happy-
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right? that's the over... the economy-
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but in fact there needs to be trust and often some degree of infrastructure in place-
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right? so ride sharing, you've got to be driving around incurring expenses in order to provide that service.
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how big is uber? it's burning billions of dollars a year to keep those cars on the road in order to expand to a point where its.
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there's this symmetric competition with a really... in the case of arcade city-
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they're choosing to symmetrically compete with an incredibly efficient and powerful business.
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complexities of those businesses and the fact that it's already a full market.
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what those platforms are actually providing. so, airbnb actually really isn't just.
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it's whole platform with a network of users who have a search capacity, who have a stable identity and reputation.
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it's managed by airbnb. there is a payment service built into airbnb, a dispute resolution side of this.
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this is why what i said before is, what we're really interested in is each of those narrow components being built in the decentralized stack.
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i think it's too early for web3 to support decentralized airbnb or decentralized uber-
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decentralized identity. like a project like uport or just decentralized server architecture like ipfs and filecoin-
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that more complex emergent behavior at the application layer.
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stack is because of the complexity of these platforms and really the amount of value that they really do provide users.
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final user facing application that provides a service that's perhaps equivalent to airbnb at a cheaper price because there's no middle man. so-
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you have this unit of scarcity that's native to the internet and-
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project in 2009, 10 in 11 into what it is today.
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the amount of value that will be stored on various blockchain technologies i see being in the trillions, absolutely-
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all of that value is built on the ability to rent a-
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that's why i view this as such a breakthrough is that for these incumbents, like-
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it is very hard for a private company to compete with a protocol.
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they basically all crashed and then after the torrent protocol and file sharing is popular-
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things like spotify or the itunes store-
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but that in between state was just a whole industry turned on its head. and i think we're seeing that now play out very slowly at the very early stages on-
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lets get into some slightly more meticulous stuff.
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we're pretty well aligned that you start the separation between the application layer and the protocol layer.
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and certainly future categories are probably going to be some of the most interesting-
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very pointedly, some of the most interest... or many of the most interesting innovations we haven't even dreamed up yet.
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and so i am very optimistic-
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and hopeful that we see some really interesting new categories come up in this space.
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obsessed with bitcoin and actually wrote an undergraduate thesis on bitcoin and-
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and dapps right now.
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so to me, i couldn't even predict basically two years ahead-
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that's like an eternity. it feels like every week i see new things that i didn't know were possible.
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so i'm very excited for everything that's happening and excited to keep following this going forward.
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yeah, and one of the most exciting things about the space is
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i know of no other industry that moves at the pace that blockchain moves at.
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i mean, you can go away for a week or two and come back and the whole world has changed. and it's remarkable,
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very compelling innovations that are coming up all the time.
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and also business people that are very forward looking, willing to try new things.
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and i challenge anybody to show me any industry globally across any technology that moves at the pace that blockchain moves.
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... is that it will enable many types of applications and many new types of use cases.
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so it has to be sort of differentiated from existing protocols in some capacity.
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especially attracts developers i think more than anything.
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and by that i mean the incumbent markets,
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that's every server provider in the world.
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so i think you're thinking more about developers and what developers will find useful.
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it solves a problem.that that's an excellent point by
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all in the sense that for protocols and general use blockchains,
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value of a blockchain is somewhat correspond to the amount of interesting innovation happening on that blockchain.
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in the space where the most interesting innovation is happening right now is in the ethereum ecosystem and the ipfs ecosystem.
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oh, for example, if we look at auger based on a.
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cost to users or...
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so that's a much easier way to arrive at a conclusion with respect to how to value that application token.
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where's the best innovation happening?
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and that over time should hopefully be the most valuable blockchain.
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ethnologically speaking is essentially falling behind. the inability of bitcoin miners to trigger segwit,
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new segregated witness, shows the serious problems that the bitcoin protocol has with upgrading technologically. so
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the ultimate offshore account or whatever you want call it.
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i think that bitcoin's price will probably continue to go up.
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however, i think bitcoin's market share will continue to go down. so bitcoin's market share,
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the market capitalization of all outstanding units as a value of all blockchain based assets.
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and i think that that trend will continue to go downwards.
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i mean, i sort of came into this through bitcoin.
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you take the plunge down the bitcoin rabbit hole and so for a long time i was very fond of bitcoin.
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however, i think we must recognize that bitcoin is suffering from
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quite literally a classic textbook case of innovator's dilemma, where this religious dogma has overtaken.
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killer app appears to be a speculation.
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given that speculation makes it difficult for storing [inaudible 00:03:49]
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likely be marginalized as the entire space grows exponentially and bitcoin maybe grows marginally.
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because, potentially even from just a novelty perspective, right?
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fun and nostalgic to also hold a few bitcoin now.
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those who seek nostalgia and holding old,
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older products that have not evolved.
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i don't know. so what i do recognize is that bitcoin is clearly suffering from innovator's dilemma.
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i think it'll probably find its way into the textbook of innovator's dilemma over
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time and that it's killer app appears to be pure speculation.
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which for me is probably the least interesting thing in this whole space.of all the interesting applications that we've been discussing here,
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interesting sectors that we've been talking about, just pure speculation isn't the most compelling or exciting for me at this point.
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the other thing that i would add to what ryan said is what's so great about markets is you can kind of...
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