One of the things I told the German-speaking bankers who attended my 7-minute talk in Frankfurt on Thursday was this:
For most of human history banks have helped to
reduce economic friction my making it easier to do business over long distances. With the advent of the Internet, this role has reversed. Business now takes place at the speed of light until it must pass through a bank, then it slows way down. So the internet is now working on removing that source of friction one revolution at a time. (Friction in the form of costs, security, regulation, and bundling of services all under one company brand.)
First Generation Architectures (BitcoinDOS) - simply bypass the banks to make
payments between businesses.
Second Generation Architectures (BitSharesOS) -
integrate a whole business onto a blockchain where its customers can perform a class of business actions at low friction without exiting to bank space.
Third Generation Architectures (GrapheneOS) Integrate multiple businesses onto the same blockchain for all the same reasons. Now we continue to grow the "friction free zone" to entire industries and ecosystems.
Fourth Generation Architectures (heh heh) will extend this to
The Internet of Everything making the entire Internet one big friction free zone.
So, if you are a Source of Friction, what should you do? Move your products and services into a friction free zone
where they are still very much needed. Offer a bond or a bank issued asset or whatever -- as a reusable component. If you unbundle them there, then all the world's entrepreneurs can come up with new ways to repackage and resell them rather than waiting for your own slow bureaucracy to implement them one by one.
That's the concept behind OpenLedger, is it not? All members put their products and services into a friction free zone where they can be used as building blocks by everyone else.
Note, only in First or Second Generation Architectures can a Big Company contemplate offering their own private solution. Third and Fourth Generation Architectures have already moved beyond the point where a private chain can prevail with the lowest friction solution.
There was a startup in Frankfurt briefing their awesome new mining chips.
I felt bad for them.
I also felt bad for the folks that think you need an on-chain scripting language.
For pretty much the same reason.