So to talk about the killer app we’ve got to differentiate the technology from the first use case, which is digital gold for now

Ethereum goal was to allow people to build different types of dApps by opening up the number of op codes on the virtual machine - this allowed people not only to build bitcoin on ethereum but also other types of apps - like Uniswap (Exchange), Compound (Lending) and dydx (derivatives). These are just a few. There’s a whole other world of NFT’s that is also bubbling up now. Aragon is building a DAO creator and launcher where you can build and run organisations in a digital jurisdiction.

Now as the World Wide Web decentralised the power to distribute information via a protocol, Blockchain’s can allow that for anything that requires trust - such as finance

Though the biggest limiting factor is still scalability of Blockchain’s but the Ethereum team and a bunch of other teams are solving that by being at the breeding edge of mechanism design. Ethereum realised Blockchain’s aren’t scalable and are bad for the climate long long ago - and already have plans to move away from PoW (energy intensive) to PoS (not energy intensive)

P.S - I got into bitcoin early because believe it was a hedge to inflation - realised it isn’t really a value add to society and have been dabbling with ethereum projects since 2016

I get the hate HN has for bitcoin - but deflationary assets are a use case especially when central banks believe they can pump infinite money. Nobody knows where this will end but your best bet is a deflationary asset

I love tech and finance - I believe the next decade we’ll see finance being disrupted by these protocols as ethereum moves to PoS

Also, this statement you made.

"Ethereum goal was to allow people to build different types of dApps by opening up the number of op codes on the virtual machine"

Let me tell you, laypersons won't understand a word of this at all. :)

sumgame, I appreciate this long and detailed response, as well as your insights. That said, here's why I think cryptocurrencies (specifically the underlying blockchain concept) are mostly redundant to us. The answer might surprise you, because it's less about technology and more about human nature and social engineering.

For something like blockchains adding "trust" to finance, I have one big problem with this. Humans on both ends of the transaction still need to conduct their business honestly for this to work. Sure, the so-called smart contracts system, like the one found with Ethereum, allows you to write an immutable record to the blockchain that dictates whatever terms and commit it to what is essentially a distributed append-only database. Additionally, if you make a mistake on a smart contract, d'oh! You basically can't change an immutable record. You'd have to append over it with a fresh one, which, depending on how energy intensive this blockchain application is, contributes to unneeded waste.

Here's where my personal issue is at with all this. Say you decide to take receipt of a delivery from Timbuktu for some fine vases. You receive the items from said vendor and, despite the entry clearly describing what you were supposed to get, you in fact get scammed with a delivery full of sand. So, what do you intend to do? The ledger can be as specific about a transaction as you want, but this won't stop dishonest people from being dishonest. So then you can settle it in a court system, bring the parties to task, and... oh wait. Why did we not just simply use a regular database and time tested ERP systems that have done the job for ages?

I guess what I'm really getting at here is that blockchain isn't some magic bullet that will guarantee specific outcomes in commerce, and in fact, feels like a different way to do the exact same thing we've done forever, but we need to cater to some kind of NIH syndrome.

Back to cryptocurrencies, why do we need so many different tokens out there in existence? Aren't they all trying to generally accomplish similar tasks? That also adds a ton of confusion and consternation, with everyone claiming how their particular cryptocurrency project is truly the best and why you need to use it over INSERT PROJECT HERE.

Fintech is an interesting space to watch, but I see way more projects with less than pure intentions trying to see if they can make out like a bandit down the line.

The world wide web, by comparison, is (and by some sources... was) a truly democratic medium. I'm not sure the same thing applies with cryptocurrencies and blockchain, which all feel like solutions in search of a problem (or projects in search of money from FOMO-riddled folks with nothing better to do).

EDIT: To your point about Bitcoin being digital gold. Yeah... it's nice sounding in theory, but at least with real physical gold, it can survive till the heat death of the universe and doesn't require the constant consumption of resources to maintain it (which I find egregious and unconscionable), as well as not requiring an active internet connection. I'm not a goldbug either, but I can at least concede to gold having a handful of intrinsic properties which lends to it being a hedge in its own right, agreed on over thousands of years in human history.

You got me there. I see a lot of cool possibilities, neat ideas, but no killer app. It’s all too complicated. But how long was that the case for the web? Decades? Even circa 2009 when I last did public facing IT work, many people were still talking to their mice. I’m not saying Bitcoin will be any more than a interesting diversion, but much like the web, it is far far too early to tell if it will just be a TempleOS style wet dream, or something that utterly shifts the landscape of the how we live our lives. (I’m also fascinated with how COVID is reshaping our planet.) When was the last time something changed how all of humanity lives their lives, globally, in a short period, before COVID? The internet? Electricity? What were some other big ticket changes you guys can think of?