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This is your daily reminder that many/most of the things that are ubiquitous today were once difficult to explain and understand (in the above example it’s email and the internet). Once a new idea or technology becomes widely adopted, its inner workings and technical aspects tend to recede into the background.
Most people, for instance, probably aren’t familiar with all of the various internet protocols and how they work. Could you explain the difference between TCP and IP and SMTP? If you can’t, it doesn’t matter. The various protocol layers of the internet now work behind the scenes to power our daily lives. And the innovation that continues to be built on top of them is getting increasingly more user friendly as time goes on.
The same thing will happen with crypto, which is talked about today in much the same way as the above folks are talking about email and the internet. New ideas will continue to emerge and we will all start deriving more and more utility from it (beyond just NFT art). And at that point, most people will stop caring about how all the sausages are made. They’ll just like eating them.
P.S. One of the nice things about blogging every day is that I’ll be able to look back on this post in ten years and see how right or wrong I was.
Are you aware of the RSA algorithm’s role in the TCP IP protocol? Do you know where the former Chief Scientist at RSA Labs is currently working? Do you know what he is currently building? It’s the TCP IP equivalent for blockchains. A standard messaging protocol that will connect all chains and allow for interoperability such that hybrid smart contracts can send commands to any chain, as needed. It is going to release this year and will be adopted by many major players, not limited to Metamask. This will all happen to in the background. Regular users will be able to interact with any chain, and it will all be abstracted away.
The implications are tremendous for the space, and in my view, will spur the next bull market, similar to how defi started the last one.
The key in all of this are oracles. They secure your NFTs by providing verifiable randomness. They secure defi by providing reliable price feeds. They will allow for actual interoperability between chains, as opposed to shitty bridges that eventually get hacked.
Most importantly, they will facilitate the flow of data in a trust minimized fashion on chain.
Want to know something else? Ethereum cannot scale without them. They will provide fair sequencing services to L2’s (arbitrum) to mitigate/eliminate MEV. They will be used for block building through danksharding. They are about to drink ethereum’s milkshake and reduce it to a settlement layer. Why do you think vitalik hates them so much?