a16z's Chris Dixon suggests shifting blockchain focus from speculation to practical use cases

The crypto world is often plagued by noise. Memecoins, speculation, rug pulls, scams, hype, and doomers distract us from the innovative stuff people are building with blockchains. And sometimes the noise pollutes the stream of information so much that it can be difficult to continue believing in the technology.

However, one venture capital veteran feels that the only way to cut a clear path is to focus on blockchain technology and startups building in the industry. "Crypto and blockchains are in the news a lot," Chris Dixon, partner at Andreessen Horowitz (a16z), told me on TechCrunch’s Chain Reaction podcast. "But a lot of it is around speculation and prices. I feel that there’s another side of the story."

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The Productive Side of Blockchains

Dixon has been at a16z since 2012 and even helped found the firm’s crypto division, which he currently leads. In the past year or so, he has been heads-down writing his new book, ‘Read Write Own,’ which came out earlier this week.

In the book, Dixon compares blockchains to steel and the Web 2.0 internet to wood — when steel first came about, most people thought it was unnecessary because wood worked fine, but then things changed drastically once steel was adopted at scale.

"Blockchains are a new building material that lets you build internet services," Dixon said, explaining the analogy. "My core argument is that [you] have all of the wonderful advantages of these corporate networks like Facebook and Twitter, and you can build modern interfaces. You can do all sorts of other interesting stuff. But you don’t have to sacrifice the control and give it over to a small group of people; you can maintain community control."

The Benefits of Blockchains

Dixon argues that blockchains are the best of both worlds, allowing entrepreneurs to build new internet services that return the internet through an open and democratic network. He believes that this is the main purpose of crypto, rather than speculation.

"I’m not anti-speculation," Dixon said. "But I think it’s a question of priorities. It’s gotten so much attention around blockchain and crypto; it’s putting the cart before the horse. The focus should be on digital ownership."

The Problem with Speculation

There’s always going to be a massive crypto trading market — it’s worth around $1.64 trillion today — so it would be silly to dismiss it. However, Dixon feels that this is not the main purpose of crypto.

"Fundamentally, it’s about building great products," he said. Crypto will make sense when it has a big break the way artificial intelligence did with ChatGPT or smartphones did with the iPhone, he added.

The Search for Breakthrough Products

While there are a lot of promising signs, it’s hard to predict where a true breakthrough will happen. "It’s sort of easier to predict what technology will be important and harder to predict exactly how," Dixon said. "So we need to focus on building the right products and services that can make a difference."

The Future of Web3

Dixon believes that web3 is the future, but it needs to be developed in a way that prioritizes security, scalability, and usability.

"We need to build a web3 that is secure, scalable, and usable," he said. "We need to focus on building products and services that can make a difference in people’s lives."

The Role of Venture Capital

As a venture capital firm, a16z has a responsibility to support the development of web3.

"We have a role to play in supporting the development of web3," Dixon said. "We need to invest in the right companies and projects that can make a difference."

Conclusion

In conclusion, Chris Dixon believes that it’s time to focus on blockchains’ use cases, not speculation. The future of crypto lies in building great products and services that can make a difference in people’s lives.

"We need to focus on building the right products and services that can make a difference," he said. "We need to prioritize security, scalability, and usability."

As we move forward into the future of web3, it’s essential to keep Dixon’s words in mind. By prioritizing the development of secure, scalable, and usable products and services, we can create a better future for all.

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