Originally published on: November 06, 2024
In a thought-provoking analysis by Ben Lilly, the managing partner and research head at Jlabs Digital, the intrinsic value of holding cryptocurrencies like Bitcoin and Ether is brought to light. Instead of viewing them solely as hedges or speculative investments, Lilly urges us to consider a more fundamental reason for their existence.
Bitcoin, for instance, is described as a means to pay for data storage on its blockchain by recording 1s and 0s within a block with consensus. Meanwhile, Ether’s function in the Ethereum network is to facilitate computation executed by the Ethereum Virtual Machine. These cryptocurrencies represent more than just monetary units; they embody the cost of maintaining a consensus protocol in a decentralized network.
But what significance does this hold for the future of money and globalization?
In a rapidly evolving world, characterized by interconnectivity and the seamless flow of information, the concept of globalization 2.0 is taking shape. The emergence of public, permissionless networks like Ethereum offers a glimpse into a future where economic transactions transcend borders and boundaries with ease.
By democratizing access to asset ownership and streamlining the process of consensus-building, these networks pave the way for unprecedented economic expansion. This newfound efficiency in coordinating global activities comes at a fraction of the cost traditionally associated with organizations like the United Nations.
As Lilly envisions, advancements in AI technology, particularly those operating on blockchain networks, could revolutionize the way economic activities are automated and conducted. The integration of AI agents into onchain ecosystems opens up a realm of possibilities where autonomous entities can transact, communicate, and innovate without human intervention.
By leveraging the power of permissionless consensus, these AI agents can propel economic expansion, drive productivity, and foster a new era of globalization. The future of money lies not just in its value as a medium of exchange but in its ability to underpin a robust and efficient system of consensus.
In conclusion, Lilly’s insightful analysis sheds light on the transformative potential of cryptocurrencies, blockchain technology, and AI in shaping the future of global commerce. As we embrace a borderless, interconnected world, the cost of achieving consensus emerges as a cornerstone of financial innovation and economic progress.
