a16z partner Chris Dixon: The more “ETH killers”, the better

Last weekend, encryption Twitter is the hottest topic Sanfrecce capital Suzhu because Ethernet Square into a “noble” chain announced new user-unfriendly and no longer supports Ethernet controversy triggered Square.

Chris Dixon, a partner of a16z, tweeted to join this controversy, but he neither supports the positive nor the negative. On the contrary, he believes that the more blockchain infrastructure projects, the better, and the title is also very straightforward: The myth of “ETH killer”—— Why does the demand for blockchain always exceed the supply?

1. For every important computing resource in history, the demand exceeds the supply. This includes CPU, GPU, memory, storage, and wired and wireless bandwidth.

2. The core power of computational movement is the mutually reinforcing feedback loop between applications and infrastructure.

3. Consider a modern smartphone. The phone itself is much better than it was ten years ago, and so are the apps. These applications have promoted the popularization of mobile phones and provided manufacturers with more funds for reinvestment. The improved mobile phone increases the application design space, and the cycle repeats.

4. In the 2000s, when the broadband penetration rate reached the lowest feasible level, entrepreneurs created video sharing sites such as YouTube, which further stimulated broadband demand and made video streaming work better, forming an intensified loop.

5. As GPU performance gets better and better, game developers invest in higher-fidelity graphics and experience, which promotes the development of the video game market and provides GPU manufacturers with more funds for chip reprocessing. Investment, etc.

6. This pattern happens over and over again, which is one of the main reasons why computers have become so ubiquitous and so important in our lives.

7. Now let’s talk about blockchain. Programmable blockchains are also computers: you can write (close to) Turing complete code for them, store information in them, and so on.

8. It is likely that similar to other important computing resources in the past, the demand for blockchain will always exceed the supply. This is already the case for Ethereum itself, but it may also be the case for L2, sidechains, and other L1s .

9. Today, Ethereum has about 10 million monthly users, accounting for about 0.2% of all Internet users. In the 2020s, it is expected that there will be a significant increase in the number of users and the number and frequency of transactions per user.

10. Many of the applications driving this growth may not have been launched yet. It is possible that they have not even been imagined yet.

11. The more blockchain infrastructure projects, the better. On the one hand, it is important to fully explore the design space, including different methods for expansion, security, governance, developers, and user experience.

12. Some designs will fail. Others will make basic trade-offs.

13. For example, imagine a world where frequently used, low-value transactions occur on a blockchain that exchanges security for performance, and then assets with increased value can be transferred to other blockchains that prioritize security rather than performance .

14. On the other hand, it is also important to have many blockchain infrastructure projects, because when exponential growth begins, we may continue to lack high-quality infrastructure.

15. Calculating exercise is a positive sum game. There may be many winners at the infrastructure and application level. Various experiments are very important, and our larger goal should focus on mainstreaming blockchain and web3.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a16z-partner-chris-dixon-the-more-eth-killers-the-better/
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