Interview with Founder of Ethereum Vitalik Buterin

We found a new interview with Vitalik so we just made an article about what this genius was talking about. If you don’t want to read, scroll below and watch the video.

What do you think, which type of companies we can create? In the world what are the challenges for the startups today and what are their opportunities according to blockchain technology.

I think the main and interesting thing about the fourth Industrial Revolution generally is that it doesn’t enable us to do anything that we couldn’t do before. What it does do is it enables us to do things that we could do before but to do them much more cheaply, and to do them much more quickly, and to do them in a way of the market that is much more open and accessible. With the Airbnb anyone can basically run a mini hotel out of their own house. We went from like having things like television to the situation where anyone is being able to put up their own videos on YouTube. From people having to grow through publishers to write books and now anyone can just set up a blog and anyone can read their the blog. With the blockchains I think it’s kind of similar. Blockchain is in some ways a technology for commoditizing trust.  Right now if you want to create a system that people are going to trust you basically have to be an entity that’s trusted by a lot of people in the real world. It could be a government, or it could be an alliance of large corporations or something similar. With blockchains we can substitute getting trust through social mechanisms, basically having technology from which we are getting trust. Technology is verifying more things for us. In this way economy is going to be more accessible both to people who want to use services that are being built by other people and to people who want to build their own services for themselves. One problem is how can we help Africans make bank accounts and the another problem is how can we make global finance in an environment where it’s as easy for Africans to make banks as it is for people who are already in first world countries. An idea of empowering producers I think it’s also fairly important.

What advices can you give for companies that are preparing for ICOs?

ICOs are definitely a complicated topic because on the one hand that it gets clear why ICO are very useful. Without them just funding open-source software is very difficult. There was this heartbleed bug two years ago where a bunch of major websites got hacked. When they started asking why they realized that it’s basically because there was this piece of software called open SSL, and even though multi-million dollar companies use it the amount of actual funding on it was just a couple of people and a few thousand dollars a month. Here you have finally for one particular kind of open source software, suddenly it’s really really easy to fund it and you get lots and lots of money. So on the one hand this is good because it means that there are things that are very useful to people that go from not being able to be funded to being able to be funded quite well.

Ethereum itself definitely owes its own existence to that. At the same time there are also challenges. One of them is that the market is not mature enough, yet. It doesn’t know well how to distinguish projects that make sense from projects that don’t make sense. The another one is that there’s a lot of projects where it doesn’t make much sense to do ICOs. Where the project doesn’t really naturally have a place for a token and where people, in order to ICO, try to squeeze in a token in ways that doesn’t really make sense. And this, at least in my opinion, often really reduces a project’s ability to succeed because it makes it much more complicated to actually use the system.

It gets important to try to avoid those kinds of cases. I think if you’re going to consider doing an ICO, then first of all try to make evaluate if it does really make sense to do a token and do an ICO within the current context of what you’re trying to build. Then, I would even say look at other kinds of issuing mechanisms. Personally, I think DAOs are underrated right now and like more people should look at DAOs than ICO themselves. Part of the reason why I say this is because I think the technology is all about decentralization and not needing to trust one person with huge amounts of money. But, what are we doing with ICOs is trusting one person with huge amounts of money. So I think like the kind of paradigm shift I’m interested in with DAOs is that instead of teams raising money you have ideas raising money, and then teams can compete for which team can spend the money to implement the idea most effectively. If one team stops performing well then it can be replaced.

What are the plans for Ethereum?

For the next five years there are going to be lots of major technological changes. This includes introduction of cryptography and codes like proof of stake, and the scalability and privacy improvements. Scalability particularly is always going to be a very significant challenge. We only have to figure out how to solve some of those issues, we already figured it out like solutions on paper and now we’re basically switching to this stage where we’re actually implementing them. If we can get through that stage then the gold stone will get quite far along.

If you know more details about this interview (who is this guy asking questions) please let us know in the comments below. We want to give credits to this guy.

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Alen Huskanovic

Alen is the CEO of a digital agency Async Labs based in Croatia, EU. Strong focus on blockchain development and product management. You can reach him on Twitter @ahuskano for any business inquiries.