There are an infinite number of universes according to multiverse theory, being that all these sub-atomic particles that quantum mechanics dictate continuously pop in and out of existence as they simultaneously inhabit all the possible universes, and ensure that every possible reality exists.
In one of those Universes it is quite possible that the future of crypto lies in the direction as envisaged by CEO of Coinbase Brian Armstrong, that is a universe where our future inhabits a reality where there are millions of ‘blockchains’ and cryptos, each of which performs a specific function in statisfaction of a use case, and Coinbase sits at the middle of it, swapping this coin for that, passing information from this chain to that, and clipping tickets all along the way.
The problem with this reality or Universe, is that in my honest opinion it is likely to be pretty unique or uncommon. Why? Well in my opinion and as I have stated many times previously, there really isn’t an economic use case to support the multiple blockchain thesis. Blockchains are a protocol and ultimately the one that will succeed is the one that can support the most use cases ‘one blockchain to rule them all‘.
Essentially economics suggests that across multiple universes the savings and advantages of blockchain technology will inevitably gravitate towards one blockchain or protocol that can solve ALL the use cases.
The term for such ‘believers’ are Blockchain maximalists, or more commonly ‘Bitcoin’ maximalists. At the other end of the spectrum, as represented by the likes of Brian Armstrong, is much of the crypto industry and spruikers, especially the crypto exchanges whose entire business model rests upon the multiple blockchain thesis.
Recently I came across an youtube of an online vlogger by the name of Patrick Shyu, aka TechLead Guy, who envisages the likely manner in which crypto currencies are likely to evolve. I don’t agree with all his conclusions however his fleshing out of the what the future crypto space is likely to evolve into or the final state that it is going to settle into, is one that I thought I wanted to share with the crypto bugs out there:
It is only a short tube of some 10 minutes or so, but a very insightful 10 minutes in my opinion. He’s observations on Coinbase are, imho, also very much on the money.
I see a lot of recruitment for crypto exchanges, as they continue to see the swapping of coins as where the future of the industry lies. In my opinion all these crypto exchanges and their business models are ultimately doomed – where I think the future of any crypto exchange business will lie in the future is as a service provider to businesses that will come to rely on the blockchain as their ‘transaction and ledger plumbing’ and managing the risks associated with most likely a single public crypto blockchain currency, as well as providing data analysis and services pertaining to CBDC, which stand a good chance of running atop of them, a view not too dissimilar to TechLeadGuy’s own views.