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      1 [1]Tom MacWright
      2 
      3 [email protected]
      4 
      5 [2]Tom MacWright
      6 
      7   • [3]Writing
      8   • [4]Reading
      9   • [5]Photos
     10   • [6]Projects
     11   • [7]Drawings
     12   • [8]Micro⇠
     13   • [9]About
     14 
     15 Crypto's missing plateau of productivity
     16 
     17 2024-09-15
     18 
     19 I think that even the most overhyped technology usually delivers some benefit
     20 to the world. And often succeeds quietly, long after the hype has died. Recent
     21 examples include 3D printing, which has found massive success in prototyping,
     22 medical applications - a friend had a filling 3D-printed right in his doctor’s
     23 office - and niche consumer items. Etsy is awash with 3D printed lamps, some 
     24 [10]even that I own. Or drones, which are now used all the time in news
     25 coverage, on job sites, and by people filming themselves hiking.
     26 
     27 I suspect that even if Augmented Reality doesn’t take off, it’ll leave in its
     28 wake big advances in miniaturized projectors, improved optics, and scene
     29 understanding algorithms in computer vision and ML. The internet of things
     30 didn’t really work and most people’s Alexa speakers are only used for setting
     31 alarms, but the hype-wave did justify the deployment of much-needed
     32 technologies like IPv6, Zigbee, and BLE.
     33 
     34 So, the thought is: none of this applies to crypto. It didn’t work, and it also
     35 didn’t fund the development of any lasting technological advance. There’s no
     36 legacy. The crypto industry’s research didn’t create new foundations for
     37 building decentralized databases. Next-generation cryptography kept rolling on,
     38 and, as far as I know, none of it owes much to the cryptocurrency industry.
     39 Nothing new has been discovered about economics: as Matt Levine says, [11]“One
     40 thing that I say frequently around here is that crypto keeps learning the
     41 lessons of traditional finance at high speed.” It’s hard to name anything of
     42 value that came out of this hype wave. We incinerated all that investment, and
     43 randomly redistributed some wealth, and… what else?
     44 
     45 The best I can come up with is the popularization of [12]zero-knowledge proofs,
     46 which play some role in Zerocash and Ethereum but are a fundamental advance in
     47 security and have other applications.
     48 
     49 Maybe there’s something I’m missing? But it reminds me of [13]the end of Burn
     50 After Reading: “What did we learn? We learned not to do it again.”
     51 
     52 
     53 References:
     54 
     55 [1] https://macwright.com/
     56 [2] https://macwright.com/
     57 [3] https://macwright.com/writing/
     58 [4] https://macwright.com/reading/
     59 [5] https://macwright.com/photos/
     60 [6] https://macwright.com/projects/
     61 [7] https://macwright.com/drawings/
     62 [8] https://macwright.com/micro/
     63 [9] https://macwright.com/about/
     64 [10] https://www.etsy.com/listing/1001875399/aspen-table-lamp-mushroom-lamp-modern?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=3d+printed+lamp&ref=sr_gallery-1-7&bes=1&sts=1&ret=1&content_source=34ccc20e2da3df5906473c82c6fb7ae0e3bcf572%253A1001875399&organic_search_click=1
     65 [11] https://www.bloomberg.com/opinion/articles/2024-08-15/stablecoins-can-have-bank-runs
     66 [12] https://en.wikipedia.org/wiki/Non-interactive_zero-knowledge_proof
     67 [13] https://www.youtube.com/watch?v=SlA9hmrC8DU