a16z Partner: A blockchain that fulfills promises will redesign the architecture of financial and internet services.

Compared to human-controlled computers, autonomous computers like "blockchain" can operate in a manner that is absolutely trustworthy and reliable.

Original Title: "Computers that can make commitments"

Author: Chris Dixon, General Partner at venture capital firm Andreessen Horowitz

Translated by: Jiangfei Lu

Blockchain is a computer that can make commitments. Traditional computers are ultimately controlled by people, either individual computers or indirectly through organizations. However, blockchain disrupts this control relationship through code. Game theory mechanisms (known as consensus mechanisms) allow blockchain to flexibly modify underlying physical components, effectively enabling it to "resist" human intervention.

Therefore, a properly designed blockchain can provide strong guarantees, where the code in the blockchain can continue to operate as intended. Perhaps this is the first time in computer history that true autonomy has been achieved, governed by its own code rather than by humans. Compared to computers controlled by humans, autonomous computers can operate in a way that is absolutely trustworthy and reliable.

Computers that can "make commitments" may be beneficial in the financial sector, with the most famous example being Bitcoin - Bitcoin has many "commitments," including the assurance that the supply will never exceed 21 million, making Bitcoin scarce and a store of value. Without blockchain, this commitment could be made by individuals or companies, but people are unlikely to trust that they will make truly reliable commitments, as individuals and companies are prone to changing their minds. Before the advent of Bitcoin, besides naturally scarce precious metals, the only reliable "commitment" to the scarcity of currency came from governments.

Ethereum is the first blockchain to support a general-purpose programming language, allowing developers to create complex software that can make "commitments." Two early applications on Ethereum are Compound and MakerDAO. Compound's "commitment" is to provide a neutral and low-cost lending protocol, while MakerDAO's "commitment" is to maintain the stability of a currency called Dai, which can be used for storing value and conducting stable payment transactions. Users have already locked in hundreds of millions of dollars in these two applications, demonstrating the credibility of their "commitments."

Applications like Compound and Maker can do things that "pre-blockchain" software cannot do, such as keeping funds within the code itself, while traditional payment systems only hold funds in offline bank accounts. In this scenario, you do not need to trust anything outside of the code, just ensure that the system is transparent and scalable end-to-end. Blockchain applications will automatically execute operations - even if the people involved in creating these projects disappear, the software will continue to work and fulfill its "commitments" indefinitely.

What else can you do with computers that can make "commitments"? One area currently being explored is the redesign of internet service architectures, including social networks and online trading platforms, so they can make firm and positive "commitments" to communities. For example, users can receive "commitments" from the code, such as ensuring that their data privacy is not compromised and that they will not be deplatformed without due process. Third-party developers can know that the rules have permeated the network and cannot be changed, protecting them from platform risks and allowing them to confidently invest in related businesses. Furthermore, leveraging the financial functions of blockchain, users and developers can receive tokens to gain corresponding investment returns as the network develops.

The emergence of blockchain is timely. Nowadays, internet services have become the center of people's economic, political, and cultural lives, but trust between users and those running these services is eroding. At the same time, trust-dependent traditional industries like finance are becoming obstacles to the development of modern financial technology. In fact, we are just beginning to explore these computers that can make "commitments," so the next few years are sure to be exciting.

This article is authorized for reposting by ChainNews and the source of the article is ChainNews (ID: chainnewscom).

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