“I think if you’ve been involved with a good-sized block grant, as is happening at the federal level now and as you just talked about, that’s a very significant thing. There will be times when we’ll disagree with someone and the federal money will end up not benefiting those people as much as we’d hoped, but that’s an example of how you’d think government should work.”
Seth Dickinson, a co-founder of the Bitcoin Foundation and a leading investor, spoke about the bitcoin blockchain and the future direction of the crypto economy at the annual blockchain conference, Consensus 2016.
He discussed his views on how the blockchain will be used to replace the Internet of Things (IoT), the world’s biggest IoT ecosystem, and the role of distributed ledger technology within that ecosystem. Dickinson gave an example of an example of a service he uses where people have had issues with the fact that the service was not fully encrypted. In response he said to talk to the client about the need for privacy and the idea of ‘anonymous computing’.
“It’s really great if you can use blockchains to reduce all these transaction costs. It’s also great if you can use the blockchain as an immutable, trusted, public ledger to track digital assets. So what’s your point? That’s a question… So let’s talk about an example: let’s say, in the IoT world, there is this company called ‘BlockCypher’. Now there’s an interesting fact about BlockCypher. It’s really good. Let’s say, I want to buy beer for 50 cents from a store right now. There will be an ‘IoT’ payment processing service that’ll charge 2.5% per transaction. So let’s say I’m a Bitcoin user and I want to accept those payments from the IoT, let’s say through BlockCypher. So I can use BlockCypher to get the money and then I’ll send that beer to the IoT store. I’ll give the store credit to use. It makes it much easier for the IoT provider to accept those payments. Well, at the same time the IoT provider is being paid. It’s being used. So you’ve got two people paying each other. It’s being used. But, the IoT provider can also get the beer without any risk. They can just pay me. So that’s a problem I had today. I had a customer come up and say to me that he was the IoT