Coinbase co-founder and CEO, Brian Armstrong, is celebrating a successful week as his company's stock value surged alongside rising hopes for a Bitcoin spot ETF. In a generous gesture, he shared ten nascent concepts in the cryptocurrency realm that have caught his attention.
During a Twitter Spaces session that spanned over 20 minutes, Armstrong expressed his desire to "introduce these concepts to the ecosystem in the hopes that others would take them up." He explained, "While we're working on numerous projects at Coinbase, we can't tackle everything. Hence, I thought of sharing these ideas. Bear markets are an optimal time for innovation—why not begin today?" Soon after, Ryan Selkis, co-founder of Messari, a crypto market intelligence firm, responded to each idea.
Flatcoin:
Armstrong suggested the concept of a "flat coin" tied to the Consumer Pricing Index (CPI) could be a groundbreaking opportunity for the crypto economy. He proposed a decentralized coin that tracks the CPI, providing stability and protection against inflation, unlike volatile cryptocurrencies or fiat-backed stablecoins. Such a coin could empower smart contracts to retain purchasing power and hedge against inflation globally.On-Chain Reputation:
Armstrong endorsed the idea of using blockchain to track entity reputation, combating fraud. He noted that Ethereum Name Service (ENS) lacks a reputation system and suggested employing an algorithm akin to Google's PageRank. This algorithm would assign scores to blockchain addresses and ENS names based on transactions, fostering trusted identities and preventing fraudulent activities.On-Chain Advertising:
The CEO discussed the potential of "on-chain ads" that charge advertisers only upon specific completed actions, as opposed to merely displaying ads. He envisioned leveraging the unique features of Web3 to facilitate this model. Smart contracts could enable pay-per-action advertising by incorporating optional referral data.On-Chain Capital:
Armstrong presented the concept of "on-chain capital formation," which involves tracking the accumulation of capital goods like equipment, tools, and transportation assets on the blockchain. This approach could democratize fundraising by providing tools for project establishment, securities registration, and investor engagement, thereby enabling global innovation.Decentralized Labor Market:
Armstrong proposed the creation of a global labor marketplace powered by cryptocurrency, facilitating cross-border payments. He highlighted the cost-efficient cross-border transaction capabilities of cryptocurrencies, which could streamline income generation worldwide.Layer-2 Privacy:
Armstrong stressed the importance of introducing privacy to layer two transactions, which involves prominent projects like Arbitrum, Optimism, and Polygon. He likened this transition to the shift from HTTP to encrypted HTTPS online. He suggested that mainstream adoption could occur through optional, slightly pricier private transactions.True Peer-to-Peer:
Armstrong envisioned constructing a fully decentralized peer-to-peer exchange atop auditable smart contracts, offering a censorship-resistant solution for escrow, reputation, and dispute resolution.Web3 Game Economies:
Armstrong proposed on-chain games where users genuinely own in-game NFT assets, creating persistent worlds with real economies.Tokenize Everything:
The CEO advocated for tokenizing real-world assets, and increasing market liquidity by embedding standardized metadata. He also suggested putting debt on the blockchain, facilitating decentralized ratings and exchange.Network States:
Armstrong invoked the concept of "network states," succeeding current "nation-states," operating as decentralized autonomous organizations (DAOs). He called for tools to enable governance, fundraising, access control, and services.
Concluding his remarks, Armstrong extended an invitation to the inaugural Coinbase Ventures Summit scheduled for October in Malibu, California. He expressed his intent to gather a select group of builders to discuss these ideas and explore others. He encouraged individuals who have startups or aspire to create one to participate in the summit, emphasizing collaboration and innovation.
Source