Talking about the future of cryptocurrencies from the point of view of one of the founders of Ethereum allows us to have a greater understanding of the importance and interaction between theory and application, especially when it comes to the development of blockchain technology. Charles Hoskinson (professional mathematician) is one of the founders of Ethereum; in this article, we will know his opinion about the future of cryptocurrencies and the blockchain.
Distributed systems and consensus
Charles mentions that distributed systems are one of the oldest areas in computing; it is conceptually simple, but putting it into practice is very difficult. The basic idea starts when the comfort of the laptop or mobile PC is left behind, and the user enters the web in a distributed system. Here the perception of events changes, as our perception of “events and reality” is different from someone else’s perception of “events and reality.” For example, if two people and an event happen, one person might say that that event happened first on her computer and then it happened on the other person’s computer, while the other person may think otherwise.
The founder of Ethereum mentions that the objective of the consensus and timing algorithms is to create a logical order of events, which is important since depending on the order of things, so will the result. When you are in a distributed system, where “no one is in control” or “no one is more important than someone else,” it becomes a relatively complex problem, especially if the so-called “Byzantine actors” are admitted, who are the people who could lie. or cheat.
Interoperability with other blockchains
Charles mentions that interoperability is about concentrating the ability to move information, value, and identity between chains and then let markets decide where things will be; it also says that everyone wants to be open source or claims to be an open ecosystem until suddenly such a system is popular. Then, they want to control it somehow (either directly or indirectly), or they want “everyone” to be in their ecosystem. Given this, the following questions are formulated. Shouldn’t the users be profitable, or shouldn’t the value of the information be profitable?
The founder of Ethereum mentions that as a result of these challenges, they are focusing on developing communication protocols between chains; he mentions that they have written several articles basically describing what “can” and “cannot be done” in this context, in addition, to develop protocols that allow moving resources and representing valuable information between systems.
Charles mentions that in the next five years, it will probably happen that the blockchain and crypto industry will function as a «Wi-Fi,» this means that it will not matter in which ecosystem the person is since it will be easy to migrate from a system the next, having some notion of waiting time, for example, a button is “clicked” and the person is on Ethereum. If he wishes, he clicks on another button again and is on Bitcoin.
He also mentions that it will be an ‘endurance’ or ‘long distance’ race regarding operating costs. For example, if there is an application that is expensive to run in a certain domain, the user will simply flee from that domain and go in search of a cheaper blockchain to operate, that will be the “internet of blockchains” that we will surely see later in the future.
Solving the puzzle
Charles Hoskinson mentions that finding the balance between theory and practice in the blockchain, in addition to achieving the adoption of cryptocurrencies at a global level, are the main challenges of the field, and the person, company, entity, or organization that solves this «puzzle» First, it may become the dominant platform in the next few years.
What do you think about this topic? What do you think is the future of cryptocurrencies and the blockchain?
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