Coinbase CEO outlines the top ten crypto projects he wants developers to work on
August 31, 2023 7:00 AM
Brian Armstrong suggests that prospective developers use the current bear market to flesh out a variety of crypto concepts, from flatcoins to on-chain marketing.
CEO of Coinbase Brian Armstrong has shared his optimism that developers can exploit the bear market to take crypto to the next level by revealing the ten ideas he is most enthusiastic about for the future of crypto.
On August 30th, Coinbase's CEO laid out his plans for the future of the cryptocurrency sector in a blog post→ and presentation for the company.
After listing his top ten ideas, he concluded, "Ideas are cheap," therefore he decided to share them.
He began by introducing the idea of a "flatcoin," which is a decentralized stablecoin that uses a tracking mechanism to maintain its purchasing power against inflation and may be backed by a basket of assets or an algorithmic approach.
Ampleforth and Truflation are two examples of services that Armstrong said "offer a way to potentially track inflation on-chain today, to further decentralize it."
He argued that this was essential because people are wary of spending Bitcoin and stablecoins backed by fiat currency "suffer from inflation and seizure — just like fiat money."
The notion of "on-chain reputation" was also proposed, which would rate wallet addresses or ENS names according to their reputation in the network. It would function similarly to Google's PageRank and be used in areas like credit scoring and detecting and preventing fraud.
Armstrong also discussed the possibilities of "on-chain ads," the Web3 version of advertisements that would reward users for performing actions related to the blockchain rather than the traditional Web2 methods of rewarding users for viewing or clicking on an ad. Wallets and smart contracts with predetermined rewards and ad selection capabilities are possible.
Crypto concepts from Coinbase. Source: Coinbase.com
Another notion characterized by Armstrong as "onchain capital formation" democratizes fundraising by facilitating the next generation of ICOs and startups raising funds on-chain in a compliant and trusted manner.
According to Armstrong, "capital formation globally is still way too high friction," which explains the ICO craze.
"Democratizing raising funds could unleash enormous entrepreneurial potential around the globe."
Armstrong also expressed optimism for a marketplace for crypto jobs and chores, which would make it easier for people to discover crypto jobs around the world, have those occupations pay in cryptocurrency, and eliminate barriers to making international cryptocurrency payments. Recently, Coinbase announced a service that allows users to advertise job openings on X (previously Twitter).
The sixth proposal, "privacy for layer 2," was proposed by Armstrong, and it allows for private transactions to be conducted on L2 rather than just on public blockchains.
"There are numerous instances where transparency is desirable, but the vast majority of economic transactions are not intended to be made public," he said.
Additional tokenization of real-world assets, fully decentralized peer-to-peer trade, and on-chain games involving asset ownership were also proposed.
Game assets can be owned by players as NFTs in an on-chain game, allowing for the development of in-game economies and metaverses. Tokenization of real-world assets like equities, commodities, and real estate is also in use.
Boston Consulting Group predicted that tokenizing illiquid assets would become a multi-trillion-dollar industry in the coming years.
The "Software for Network States" was Armstrong's last proposal; it's a suite of programs designed to let new communities and cities handle on-chain issues like voting, taxation, and service provision.
Before adding, "Bear markets are for building," he predicted that many business owners will look back in five years and wish they had launched a cryptocurrency company in 2023.
Armstrong's recent public appearance may be an effort to generate buzz for Coinbase's upcoming Coinbase Ventures Builder Summit in California in October.