The history, evolution, and use of money revolves around the important concept of debt: It’s what allows us to “time travel” and build toward the future — growing livelihoods, businesses, and the overall economy as a result. When it comes to crypto, however, this concept plays a key role as a way to potentially stabilize the volatility of cryptocurrencies, and more importantly, provide a more stable medium of exchange so key applications can be built on top of blockchains.
That’s where stablecoins (cryptocurrencies pegged to a more stable asset, such as fiat dollars) come in. Because they’re deployed on top of blockchains, they retain the advantages of cryptocurrencies — digital, global, easily transferable, decentralized. And because open source networks are more transparent and auditable, these systems are far less opaque than, say, the huge house of cards that collapsed in the case of the 2008 financial crisis.
But beyond bringing more people into a better financial system, why do stablecoins like Dai — and Maker, one of the oldest decentralized autonomous organizations (DAOs) on the Ethereum blockchain — matter to the crypto developer community? To banks? To anyone who thinks about the future of innovation… or even the future of the firm, and the future of work? How do (and don’t) DAOs and these kinds of smart contracts change everything we know about management and software development? This episode of the a16z Podcast explores the answers to these questions and more, with Maker CTO Andy Milenius in conversation with Sonal Chokshi and a16z crypto partner Jesse Walden. Here are just two quotes from our jam session: Blockchains are an “open-access, permissionless, choose-your-own adventure story”; and smart contracts are an mp3-like “compression format” for scaling trust. Let the music begin!
The views expressed here are those of the individual AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.