Author Matthew Leising on the evolution and use of decentralized techMay 9, 2022
"Blockchain technology is being used to remake all of these things that we know of in the traditional financial world, but in a new, peer-to-peer fashion," said Matthew Leising, author of 'Out of the Ether' and co-founder of DeCential Media. He was speaking to Orchid's Derek Silva about the evolution and use of decentralized tech on this week's episode of the Priv8 Podcast.
"The first major example of this was the ability to raise capital -- one of the cornerstones of the financial world.
"Through blockchain technology, fundraising was remade in a peer-to-peer, decentralized fashion, starting with the initial coin offering (ICO) boom in 2017. Unfortunately, this period saw a lot of people lose money and get defrauded. Still, ICOs introduced a new way for people to raise money for their startups that didn't involve banks or VC funds. And because of ICOs, people could raise money directly from the potential users of their products and services.
Matthew said that the next wave of innovation came with DeFi lending. "Because of DeFi lending platforms, people who had Bitcoin, Ether, and other cryptocurrencies could start to earn interest on them. And once again, blockchain made it possible to build these systems in a peer-to-peer fashion, with no banks involved. This ability to borrow and lend money is another very important pillar of the financial world."
Today, blockchain is being used to transform industries beyond the financial world. "When non-fungible tokens (NFTs) became popular, people had the ability to create scarce digital goods for the first time.
"This element of scarcity makes these digital goods collectible, and enables people to prove ownership over them. This is changing the way that artists and musicians can interact with their fans -- it's opening up a new way for creative people to monetize what they do. This is another example of a pillar of our society and culture being reinvented through peer-to-peer technology, which I just find fascinating.
"I don't know what the next wave of decentralized innovation is going to be. But there are so many people coming into this space, and so many people learning about what it can do to change the traditional ways that things are done.
"There's no doubt in my mind that decentralized technology is going to continue to disrupt our world. I just wish I knew how."
Check out the entire conversation with Matthew. And don't forget to subscribe to Priv8 on your favorite streaming service.