a16z partner Chris Dixon: The computing movement is a positive-sum game, and running various experiments is important

Source: Chris Dixon Twitter

Compiled by: Gu Yu, Chain Catcher

For every significant computing resource in history, demand has always outstripped supply. This includes CPUs, GPUs, memory, storage, and both wired and wireless bandwidth.
The core driver of the computing movement is the mutually reinforcing feedback loop between applications and infrastructure.
Consider modern smartphones. The phones themselves are much better than they were a decade ago, and so are the applications. These applications have driven the proliferation of smartphones, providing manufacturers with more funds for reinvestment. Improved phones have expanded the design space for applications, and the cycle repeats.
In the 2000s, when broadband penetration reached a viable minimum, entrepreneurs created video-sharing sites like YouTube, which further stimulated demand for broadband, allowing video streaming to perform better, forming a reinforcing loop.
As GPU performance improved, game developers invested in higher fidelity graphics and experiences, driving the growth of the video game market and providing GPU manufacturers with more funds for reinvestment in chips, and so on.
This pattern has occurred over and over again, and it is one of the main reasons why computers have become ubiquitous and so important in our lives.
Now let’s talk about blockchain. Programmable blockchains are computers: you can write (almost) Turing-complete code for them, store information within them, and so on.
Like other significant computing resources in the past, demand for blockchains will likely always exceed supply. Ethereum itself is already like this, and L2s, sidechains, and other L1s may be as well.
Today, Ethereum has about 10 million users per month, accounting for approximately 0.2% of all internet users. In the 2020s, usage is expected to grow significantly in terms of user numbers and the number and frequency of transactions per user.
Many applications driving this growth may not have been launched yet. It’s possible they haven’t even been imagined.
The more blockchain infrastructure projects, the better. On one hand, it is important to fully explore the design space, including different approaches to scalability, security, governance, developer, and user experience.
Some designs will fail. Others will make trade-offs.
For example, one can imagine a world where frequent, low-value transactions occur on a blockchain that sacrifices security for performance. Then, value-added assets could be transferred to other blockchains that prioritize security over performance.
Having many blockchain infrastructure projects is also important because when exponential growth begins, we may continue to lack high-quality infrastructure.
The computing movement is a positive-sum game. There may be many winners at both the infrastructure and application layers. It is important to run various experiments—while focusing on the larger goal of mainstreaming blockchain and web3.