Quote note (#282)

At least superficially, under-funding is the strict reciprocal of hype:

The blockchain industry is either hugely under-resourced or hugely over-optimistic. Probably both.

Bitcoin rigorously formalizes the common insight that words are cheap (it emerged out of spam-filter solutions). So this analysis is intriguingly ironic, as well as obviously thought-provoking.

September 9, 2016admin 8 Comments »


8 Responses to this entry

  • Brett Stevens Says:

    Under-resourced is positive; it means that its growth is occurring through natural means, not as an investment whose value is based in public trend hype.


    Posted on September 9th, 2016 at 4:24 pm Reply | Quote
  • Paul Ennis Says:

    The smartest team, R3, plucked Grigg and Hearn and their whitepaper, Corda, looks like the most sophisticated and doable of the bunch. They drop the revolution language in favour of crytopgraphic communication between relatively decentralised – but not completely trustless – agents. That way you sort of just end up with corporate priv keys that smooth a bunch of the ‘back office’ headache. If any proper blockchain succeeds it will, most likely, be the one that already works.


    Posted on September 9th, 2016 at 4:50 pm Reply | Quote
  • cyborg_nomade Says:

    coincidentally (kek), I was just reading CCRU’s text on Y2K hype. the situation here seems quite similar.


    Posted on September 9th, 2016 at 7:56 pm Reply | Quote
  • Ur-mail Says:

    It’s also important to remember that “Blockchain” is not the same thing as “Bitcoin” or “bitcoin”.

    Most of the blockchains big banks are looking into are private, permissioned ledgers (a la Hyperledger – http://www.the-blockchain.com/docs/Hyperledger%20Whitepaper.pdf). In other words, participant access is strictly controlled and not all data is visible to everyone.


    Anomaly UK Reply:

    By the time they finish defining blockchain down, it will be just what they were already doing. I think most “fintech” startups pitching blockchain to banks know this.


    Posted on September 9th, 2016 at 9:00 pm Reply | Quote
  • Anon Says:

    If hype nontrivially relies on a kind of populism, how do we square this with the inevitability of NRx perspectives? For example, things like BTC remain in pipe-dream status while Greg Cochran has to scrounge for donations as he sits on the proverbial Pandora’s Box of eugenics.

    Do we really belive a breaking point will be enough to proritize things differently, RE China pursuing gene engineering while the West ctumbles under pretty lies, or is it just going to be more of the same?

    When does hyperstition start carrying its own weight?


    Posted on September 9th, 2016 at 11:22 pm Reply | Quote
  • ossipago Says:

    Maybe I’m being dense here, how how can a technology be both underresourced and overhyped? (Or…it that the joke?)

    A hypothetical finance industry might simultaneously believe that crypto is the future, and that every dollar they invest in it takes them closer to a monetary reckoning. It becomes the elephant-in-the-room no one talks about. If there’s a lesson to be learned from 2016, it’s that human groups are good at ignoring elephants.


    admin Reply:

    ‘Hype’ might not be the best word for this (although it’s close). The mismatch at stake is that between expressed and revealed enthusiasm.


    Posted on September 10th, 2016 at 12:10 am Reply | Quote

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