Fireside Chat, Interview, Roundtable
a16z Podcast | The Blockchain, in Congress
- Public and congressional perception of blockchain is expected to shift from a focus on Bitcoin or the dark web to an understanding of distributive ledger technology, driven by younger staff explaining benefits and formalized caucuses presenting specific use cases like fraud prevention at the VA.
- The executive branch is anticipated to remain actively involved in regulation, with specific agencies becoming highly expert in the area, while legal frameworks for autonomous vehicles are expected to change within the next decade to enable insurance for code on a distributive ledger.
- State governments, particularly in Arizona, are expected to act as laboratories for adopting smart contracts and moving vehicle titling and real estate records onto ledgers, whereas federal action is viewed as a significant, singular step that may struggle against legacy incumbents attempting to co-opt government to sustain advantage.
- Regulatory and legal issues are identified as the "greatest battle" due to threats to current bureaucracies and income streams, with a concern that innovation could run afoul of existing laws without a deliberate legal ecosystem designed to ensure trust and prevent unfair advantages.
- Significant societal changes are expected to accelerate within the next five to ten years, driven by venture capital flows, potentially impacting the world as dramatically as the iPhone or Internet, with specific applications for medical records meeting HIPAA standards expected to occur "almost today" if proper encryption and token frameworks are established.
- Massive benefits are projected for the developing world and unbanked populations, including the ability to send value directly to individuals in locations like central Myanmar without bureaucratic interference, as well as new mechanisms for identity confirmation and ownership.
- A new societal contract regarding privacy is expected to emerge to address data control concerns on both the political left and right, creating an alliance around the ability of individuals to control their own data and know who accesses it, while legacy operators and incumbents may attempt to block fundamentally disruptive technologies.
- While the industry expects the "rates" of technological adoption to accelerate beyond predictions and for technology to lead government interest over the next five to ten years, the specific "great winners" among current venture capital investments cannot be identified as the market direction remains uncertain even for expert firms.