Brian Armstrong, the CEO of Coinbase, has revealed his enthusiasm for ten specific crypto ideas that he envisions as pivotal for the future of the industry. He expressed his desire for developers to capitalize on the bear market conditions and elevate these ideas to a higher level.
In an article and presentation on August 30, shared via the company’s blog, Armstrong outlined his perspective on the crypto landscape’s potential trajectory. He highlighted concepts that he believes possess the capability to thrive in the digital asset realm.
Armstrong remarked, “I decided to share my top 10 ideas with the hope that someone goes out and builds them,” underscoring the notion that while ideas hold value, their realization is what truly matters.
One of the initial concepts he discussed revolved around a “flatcoin” – a decentralized stablecoin designed to maintain purchasing power by tracking inflation. This could be achieved through asset-backed reserves or by employing algorithmic methodologies.
Armstrong referenced platforms like Ampleforth and Truflation, which currently offer a means of on-chain inflation tracking, thereby promoting further decentralization in this aspect.
He asserted the need for such a concept due to the reluctance in spending Bitcoin and the issues of inflation and vulnerability associated with fiat-backed stablecoins, akin to traditional fiat currencies.
Another idea he presented was the notion of “on-chain reputation.” This entails a system that assigns reputation scores to wallet addresses or Ethereum Name Service (ENS) names based on their on-chain activities. This mechanism, similar to Google’s PageRank, could be applied to lending, ratings, and counteracting fraudulent activities.
Additionally, Armstrong underscored the potential of “onchain ads,” a Web3 version of advertisements. Unlike Web2 ads that rely on views or clicks, these ads would be triggered by on-chain actions, resulting in payouts. The ads could incorporate smart contracts to specify payouts and wallets would have the autonomy to choose which ads to display.
“Capital formation on-chain” was another concept presented by Armstrong. He described it as a notion that democratizes fundraising, aiding the evolution of initial coin offerings (ICOs) and startups to raise funds in a compliant and trustworthy manner within the blockchain space.
Armstrong acknowledged that the ICO craze occurred for a valid reason, asserting that “capital formation globally still involves too many obstacles.” He further expressed:
Armstrong also expressed optimism about the potential for a crypto job and task marketplace. This platform could facilitate the global discovery of crypto-related employment opportunities, enabling payments in cryptocurrency and eliminating cross-border payment hurdles. Notably, Coinbase recently joined forces with X (previously known as Twitter) to introduce a job posting feature.
Armstrong’s sixth notion centered on “privacy for layer 2,” aiming to incorporate confidential transactions into Layer 2 solutions, rather than being exclusive to public blockchains.
He explained, “While transparency is advantageous in many scenarios, most economic transactions shouldn’t be publicly accessible.”
Among the other concepts discussed were a fully on-chain peer-to-peer exchange, on-chain gaming with asset ownership, and the tokenization of real-world assets.
On-chain gaming is already a live concept in the cryptocurrency realm, empowering players to possess in-game items as NFTs, fostering virtual economies and metaverse ecosystems. Real-world asset tokenization, which involves digitizing assets like stocks, commodities, and real estate, is also an existing practice worldwide.
A recent report by Boston Consulting Group projected that the tokenization of traditionally illiquid assets would expand into a multi-trillion-dollar sector in the coming years.
Armstrong’s last concept was labeled as “Software for Network States.” This concept involves developing tools to aid startup cities and communities in administering governance, voting, taxes, and services via blockchain technology.
“In five years, numerous entrepreneurs will likely reflect on their decision not to initiate a crypto venture in 2023,” he stated, wrapping up with the assertion that “Bear markets serve as a platform for construction.”
Coinbase has been gearing up for its debut Coinbase Ventures Builder Summit scheduled for October in California. Armstrong’s recent public appearance may serve as an endeavor to pique interest in this upcoming event.