2024: Big ideas by a16z

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Yesterday, @a16zcrypto dropped their list of narratives for 2024. Normie's explainer + list of protocols to watch ↓

❯ Further DAO decentralization Decentralization is crucial for ensuring user freedom by reducing the control a few have over systems and platforms. It enables a more democratic internet infrastructure, fostering competition and diversity. twitter.com/stacy_muur/status/1717569096743575983

However, implementing decentralization at a large scale has been challenging, especially against the efficiencies of centralized systems. Web3 governance, often through DAOs, has struggled with effective decentralized governance.

But recent developments in web3 have led to better practices for decentralization, including more sophisticated governance models that promote accountability and effective leadership, pointing towards a future with more decentralized coordination and innovation.

❯ Improved Web3 UX Crypto user experience hasn't improved much since 2016, remaining complex for new users. However, developers are now creating tools to improve this.

These include passkeys for easier app logins, smart accounts for more manageable accounts, embedded wallets for seamless integration into apps, MPC for secure third-party signing support, and advanced RPC endpoints for smarter user interactions.

A few notable protocols in this field: • @AmbireWallet • @HoldstationW • @avowallet • @safe • @PlenaFinance • @biconomy • @argentHQ • @dappOS_com Additional reading ↓ twitter.com/stacy_muur/status/1713511860626923752

❯ Modular solutions: Monolithic architectures offer performance benefits through deep integration, but an open-source, modular approach is advantageous for encouraging permissionless innovation, specialization, and competition, which are highly valued in technology development.

Some developments: • Ethereum L2s: @arbitrum, @optimismFND, @zksync, etc. • @babylon_chain and @stacks on Bitcoin • @cosmos, @Neutron_org, and @osmosiszone • @CelestiaOrg • @alt_layer • @fuel_network • @eigenlayer Additional reading ↓ twitter.com/stacy_muur/status/1678733113718112257

❯ AI + Blockchain Decentralized blockchains offer a balance to centralized AI. Currently, AI models like ChatGPT are primarily in the realm of big tech companies due to high costs for computing and data.

Crypto enables the creation of global markets where anyone can contribute resources like computing power or data, making AI more affordable and accessible. Furthermore, crypto can help track the origins of online content, including AI-generated material like deep fakes.

Some notable projects ↓ • @Chain_GPT • @AITECHio • @Fetch_ai • @peaqnetwork • @CharacterXAI • @graphlinq_proto • @KvantsAI • @openfabricai • @ionet_official • @oraichain More great picks in this thread by @ardizor ↓ twitter.com/ardizor/status/1731330229308932471

❯ GameFi In "play to earn" (P2E) games, players can earn real money based on their in-game activities, reflecting broader changes in the gaming industry and the creator economy.

Web3 challenges the norm of gaming profits solely benefiting companies, advocating for player compensation. However, games aren't primarily workplaces. The focus is shifting towards creating enjoyable games that also enable players to earn, balancing fun and financial benefit.

Notable project within the GameFi narrative: • @Ronin_Network • @pixels_online • @TheTreeverse • @playSHRAPNEL • @DeFiKingdoms • @heroesofnft • @HeroesChained • @DomiOnline Recommended @a16z podcast on Web3 Gaming ↓ web3-with-a16z.simplecast.com/episodes/web3-crypto-gaming-on-chain-games-gaming-design-users-more-OzmoC2Ke

❯ Formal methods Formal methods, often used in hardware, are less common in software due to complexity and potential extra costs. However, they're crucial for smart contract development where errors can have severe financial consequences.

Recently, new tools have been developed that are simpler and more efficient for smart contracts, thanks to their straightforward architecture and improvements in SMT solver technology. These advancements make smart contracts more reliable and less prone to costly mistakes.

❯ Mainstream NFTs Established brands are introducing NFTs to mainstream consumers, like Starbucks' gamified loyalty program and Nike and Reddit's digital collectibles.

NFTs offer opportunities beyond just collecting: they can represent customer identity, link to physical products, and involve customers in co-creation. The trend includes affordable NFTs for mass collection, often via custodial wallets and low-cost "Layer 2" blockchains.

❯ SNARKs Historically, verifying computational workloads involved re-executing the compute, using trusted execution environments (TEEs), or blockchain. These methods had cost or scalability limits.

Now, SNARKs (Succinct Non-interactive Arguments of Knowledge) are emerging as a more practical solution. They allow creating a secure, unforgeable cryptographic receipt of compute work with significantly reduced overhead.

This makes SNARKs suitable for situations where re-execution or data storage isn't feasible, leading to applications in IoT, media editing, meme creation, and more, ensuring authenticity and security.

Notable protocols within the SNARKs (ZK) narrative: • @zksync • @MantaNetwork • @PolyhedraZK • @subsquid • @zkp2p • @zkemail • @ZorpZK • @zkLink_Official • @LineaBuild • @zkPass • @zkme_ Additional reading ↓ a16zcrypto.com/posts/article/17-misconceptions-about-snarks/

I hope you found it useful and added a few protocols to your to-watch list. Don't forget to join my Telegram channel for more nerdy content like this ↓ t.me/muur_posts