Coinbase CEO outlines 10 key areas for crypto development
Coinbase CEO Brian Armstrong has shared his top ten crypto ideas, urging developers to capitalize on the current bear market to advance these concepts.
On Aug. 30, the Coinbase boss took to X (formerly known as Twitter) to spotlight ten key innovations in the cryptocurrency space, emphasizing that the current bear market presents an optimal period for development and progress.
Flatcoin: a stablecoin with inflation tracking
Armstrong started his discussion by introducing the concept of a “flatcoin,” a decentralized stablecoin designed to track inflation and maintain its purchasing power. Unlike traditional fiat-backed stablecoins, which are susceptible to inflation and seizure, a flatcoin could be backed by a diversified basket of assets or employ an algorithmic approach.
Armstrong mentioned existing services like Ampleforth and Truflation as potential models for this concept.
On-chain reputation and ads
The CEO also delved into “on-chain reputation,” proposing a system that assigns reputation scores to wallet addresses or ENS names based on their on-chain activities. Such a system could be instrumental in lending, ratings, and fraud prevention.
In addition, Armstrong spoke about “on-chain ads,” a Web3-based advertising model that would pay out based on on-chain actions rather than traditional view or click metrics. These ads could utilize smart contracts to specify payouts, allowing wallet owners to choose which ads they wish to see.
Democratizing fundraising and job marketplaces
Another concept Armstrong highlighted was “on-chain capital formation,” aimed at making fundraising more democratic and efficient. He acknowledged that the ICO boom had occurred for a reason, stating that global capital formation is still fraught with friction.
“Democratizing fundraising could unlock tremendous latent entrepreneurial energy across the world.”
Brian Armstrong, CEO of Coinbase.
He also proposed the idea of a global job marketplace paid in cryptocurrency, allowing organizations and workers to find tasks, full-time jobs, and contractual work without the hassle of cross-border payments.
Privacy and layer-2
Armstrong also discussed the importance of privacy in Layer 2 solutions, stating that while transparency is often a feature, not all transactions should be public. He suggested that bringing private transactions to Layer 2 could offer a balanced approach to transparency and privacy.
Peer-to-peer exchanges and more
Other ideas Armstrong floated included a fully on-chain peer-to-peer exchange with integrated escrow and reputation management and on-chain games that allow players to own in-game assets as NFTs.
Armstrong also spoke about the potential for tokenizing real-world assets like stocks, commodities, and real estate.
Software for network states
Armstrong’s final idea was the development of “Software for Network States,” tools designed to assist startup cities and communities in managing governance, voting, taxes, and services, all on-chain.
Looking ahead
Armstrong concluded his Twitter Spaces session by inviting attendees to the first-ever Coinbase Ventures Summit in Malibu, California, this October. The summit aims to bring together a small group of builders to discuss these ideas and more, targeting those who either already have a startup or are interested in creating one.
“In five years, many entrepreneurs will be looking back wishing they had started a crypto company in 2023,” Armstrong said, reiterating that “bear markets are for building.”
