Great article again Santi! This quote summed it up perfectly for me…”When incumbents adopt crypto rails, most of the savings remain with the business that owns the customer relationship and the balance sheet. The rails enable change; they do not capture it.”
I apologize in advance for lacking the full details and numbers of a good response, but please allow me to riposte.
Your argument that the infrastructure is already here and properly scaled is not at all representative of reality. We are not close to crypto overcapacity. My reasoning is thus: it costs $0 for me to make this comment on your post. This comment will be timestamped, ordered, attached to my pseudonym, etc. All the things we may want in a crypto transaction. The many characters will all add up to be in fact more raw byte data than most transactions. Yet, the cheapest network I can use, for similar reach in broadcast, is what, Solana? https://solana.com/developers/cookbook/accounts/calculate-rent Rent for two years is going to cost me ~5usd for a comment like this.
We in theory, and I mean mathematical, comp sci, distributed algorithms theory, hard numbers theory, have the ability to linearize the consensus to have additive computational value per participant. Theory has yet to meet engineering reality. In less jargony terms, we have the power to make it so every computer that plugs into the network ADDS to network capacity. This is the real story of the ZK development, separate data from compute and both from consensus ordering.
These algorithms and business structures are evolving to become the backbone of all information exchange, not just basic financial services like payment transactions. We are wildly undercapacity, we are wildly underbuilt, our infrastructure is obsolete and decaying already.
Let me end with this, your overall expressed sentiment of "hey guys hype over lets uhhh look at the reality of the business environment now" is absolutely correct. I only mean to add that, the absolute trajectory of these networks has not reached a point of saturation, of velocity retardation, but in fact the opposite. We will be in a world where the marginal cost of adding a post like this to an existing consensus infrastructure will approach 0usd, as much as this comment cost me. This post could as well have attached a small tip alongside, in our cryptoworld, where the stablecoin I sent is converted without thought from my local jurisdiction to the one your reside, and deposited into your tipjar account, used to buy a nice lunch later. Alas, we do not yet live in such a world, because we are in fact undercapacity.
sirve mucho para calibrar la tesis general
Great article again Santi! This quote summed it up perfectly for me…”When incumbents adopt crypto rails, most of the savings remain with the business that owns the customer relationship and the balance sheet. The rails enable change; they do not capture it.”
I apologize in advance for lacking the full details and numbers of a good response, but please allow me to riposte.
Your argument that the infrastructure is already here and properly scaled is not at all representative of reality. We are not close to crypto overcapacity. My reasoning is thus: it costs $0 for me to make this comment on your post. This comment will be timestamped, ordered, attached to my pseudonym, etc. All the things we may want in a crypto transaction. The many characters will all add up to be in fact more raw byte data than most transactions. Yet, the cheapest network I can use, for similar reach in broadcast, is what, Solana? https://solana.com/developers/cookbook/accounts/calculate-rent Rent for two years is going to cost me ~5usd for a comment like this.
We in theory, and I mean mathematical, comp sci, distributed algorithms theory, hard numbers theory, have the ability to linearize the consensus to have additive computational value per participant. Theory has yet to meet engineering reality. In less jargony terms, we have the power to make it so every computer that plugs into the network ADDS to network capacity. This is the real story of the ZK development, separate data from compute and both from consensus ordering.
These algorithms and business structures are evolving to become the backbone of all information exchange, not just basic financial services like payment transactions. We are wildly undercapacity, we are wildly underbuilt, our infrastructure is obsolete and decaying already.
Let me end with this, your overall expressed sentiment of "hey guys hype over lets uhhh look at the reality of the business environment now" is absolutely correct. I only mean to add that, the absolute trajectory of these networks has not reached a point of saturation, of velocity retardation, but in fact the opposite. We will be in a world where the marginal cost of adding a post like this to an existing consensus infrastructure will approach 0usd, as much as this comment cost me. This post could as well have attached a small tip alongside, in our cryptoworld, where the stablecoin I sent is converted without thought from my local jurisdiction to the one your reside, and deposited into your tipjar account, used to buy a nice lunch later. Alas, we do not yet live in such a world, because we are in fact undercapacity.