Coinbase CEO Unveils 10 Crypto Concepts to Fuel Developer Creativity

Coinbase CEO Unveils 10 Crypto Concepts to Fuel Developer Creativity

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by Chimamanda U. Martha · 4 min read
Coinbase CEO Unveils 10 Crypto Concepts to Fuel Developer Creativity
Photo: TechCrunch / Flickr

Addressing the unequal distribution of capital, Armstrong suggested the concept of “On-Chain Capital Formation”.

Coinbase CEO Brian Armstrong has shared his vision for the future of the cryptocurrency world, outlining ten ideas that he believes could shape the industry in the coming years. In a recent blog post published on August 30, Armstrong expressed his excitement about these concepts and encouraged developers to turn them into reality.

One of his intriguing ideas is the concept of a “Flatcoin”. According to the Coinbase CEO, Flatcoin is a decentralized stablecoin that aims to tackle the issue of inflation by tracking the Consumer Price Index (CPI) to preserve purchasing power. Unlike traditional stablecoins, which are susceptible to inflation, a flatcoin could provide a more stable medium of exchange while maintaining its value.

To further explain this concept, Armstrong said the stablecoin may need to be backed by a basket of assets to track CPI or use an algorithmic approach to maintain its value constantly.

 On-chain Reputation and Advertising

Armstrong’s second proposal is introducing an “on-chain reputation” system. Inspired by Google’s PageRank algorithm, the system would assign reputation scores to wallet addresses and Ethereum Name Service (ENS) names based on on-chain activities. The Coinbase CEO believes such a system could enhance trust and prevent fraudulent activity within the crypto space.

“This could be used for lending (a decentralized FICO score), ratings on merchants (Yelp), fraud prevention (Wallets could warn me before sending to a risky address), airdrops to VIPs, etc. It would need to be a decentralized protocol to prevent capture or abuse,” Armstrong said.

The Coinbase boss also suggested a new approach to advertising with “on-chain ads” as his third concept for the future of crypto. According to him, on-chain ads will serve as a Web3 advertising version where advertisers pay based on specific on-chain actions. This innovative concept could revolutionize the advertising industry by introducing transparency and accountability through smart contracts.

On-Chain Capital Formation for Capital Equality

Addressing the unequal distribution of capital, Armstrong suggested the concept of “On-Chain Capital Formation”. The idea envisions a platform that democratizes fundraising by enabling startups and innovative ventures to raise funds on-chain in a transparent and compliant manner. By removing barriers to entry, this concept could unlock entrepreneurial potential on a global scale.

“If you’re an entrepreneur living in Budapest or Bangalore, your chances of having access to capital are lower than if you live in Silicon Valley or Cleveland. We’d have way more startups if it were easier to raise money,” he said.

For income disparity, Armstrong proposed the introduction of a “job/task marketplace” where individuals can find crypto-based jobs and tasks, offering an alternative to traditional employment models. The platform would facilitate cross-border payments and provide opportunities for people worldwide to earn digital assets.

Coinbase CEO Puts Forward the Concept of Privacy for Layer 2

In terms of privacy, the Coinbase CEO recognized the importance of “privacy for layer 2”. This concept suggests bringing private transactions to Layer 2 solutions, enhancing confidentiality while maintaining transactional efficiency.

Armstrong’s vision also extends to peer-to-peer (P2P) exchanges and the tokenization of real-world assets. He envisions fully on-chain P2P exchanges that provide escrow services and dispute resolution through smart contracts, offering a censorship-resistant alternative.

Additionally, the tokenization of real-world assets could unlock liquidity and accessibility in markets that were once illiquid.

The Coinbase boss also suggested the concept of on-chain gaming, granting users true ownership of in-game non-fungible tokens (NFTs) and fostering enduring virtual realms with actual economies.

Finally, he suggested the “Software for Network States” concept, which proposes tools to manage governance, voting, taxes, and services within emerging economic zones and communities. This approach aligns with the broader trend of decentralized governance models.

Blockchain News, Cryptocurrency News, News
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