Coinbase CEO Lay Down Ideas For The Betterment of Crypto Sector

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    • Brian proposes an advertising model similar to Web2.
    • Employment creation is among vital aspects in any sector including crypto.

    Coinbase CEO Brian Armstrong has laid down some ideas for developers in the latest blog post, should they choose to get inspiration from it. He believes these suggestions could become critical for the crypto sector in days to come. Moreover, Coinbase Ventures, the company’s investment arm, is organizing its first-ever summit for builders this year. He writes, “Bear markets are for building, so why not start today?”

    Coinbase Has Resources But Lacks Time

    Mr. Armstrong writes, “Coinbase has the resources to build a lot in crypto, but we don’t have time to build everything and want to help enable the ecosystem around us.” His first idea involves a decentralized stablecoin called “flatcoin”. It would track indexes like the Consumer Price Index of the United States to preserve purchasing power. Moreover, the cryptographic coin should be backed by a “basket of assets to track CPI.”

    Ethereum Name Service provides users with decentralized identities in Web3. Still, there’s an element of missing trustability according to Mr. Armstrong. Onchain Reputation is a potential solution to this. He recommends the developers suggest a protocol to provide a reputation score based on on-chain data.

    Brian proposes an advertising model similar to Web2. He cites the model to be the best business model for Web2 firms. As of now, websites generate revenue using cost per click (CPC) and cost per action (CPA). In Web3, this model could only focus on the latter. An entity will generate revenue when a user acquires something via ads.

    For startups, Coinbase CEO recommends on-chain capital formation. Initial Coin Offering (ICO), a means to raise funds for a crypto venture, comes with its own issues including unregistered securities and scams. He cites a potential combination of Stripe Atlas and AngelList, startup-focused businesses, in Web3. Such collaboration would help ventures register and raise funds legitimately.

    Employment creation is among vital aspects in any sector including crypto. Armstrong propounds the creation of a global and free marketplace that pays in cryptocurrency. Moreover, it would help employees and contractors find each other. Additionally, he also proposes bringing privacy to Layer 2 solutions as the majority of transactions still happen on public blockchains.

    Today, peer-to-peer exchanges are often operated by centralized entities. The Coinbase CEO asks developers to contemplate building a decentralized one. Moreover, he sheds light on on-chain gaming. Users can collect and own the in-game items in actuality.

    In his concluding two ideas, Brian Armstrong talks about the tokenization of real-world assets and network states. He believes several assets will have their blockchain manifestation. Furthermore, in context to the network states, he says, “More network states will be started and they need tools to manage voting, governance, fundraising, citizenship, collecting taxes, providing services, and more.”


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    Anurag Batham
    Anurag Batham is a journalist and research analyst at CryptoSunday. He has covered blockchain, crypto, metaverse and more since 2021 and holds a keen interest in global economy and climate change with a passion to deliver useful information to the readers.