Building bridges to the crypto space

August 27, 2019

What happened?

Binance, one of the world’s largest crypto exchanges, announced Venus, ‘an independent and autonomous, regional alternative to Facebook’s Libra’. Where Facebook wants to become the global currency for the internet, Venus aims to be the currency for the unbanked countries. Similar to Libra, Venus is trying to deal with the volatility that frustrate the current crypto market by becoming a stablecoin, thereby making them more interesting as a means of exchange. More specifically, Binance described Venus as an “initiative to develop localized stablecoins and digital assets pegged to fiat currencies across the globe”, showing their intent to Furthermore, Bakkt, a futures trading platform for Bitcoin got approved by the CFTC and NYDFS and is ready to launch on September 23rd.

What does this mean?

Big projects like Libra, Venus and Bakkt show that the crypto industry is increasingly trying to bridge the gap between radically decentralized initiatives and the traditional industry and institutional world. Some believe that these initiatives represent a better alternative to their more decentralized counterpart and as such will replace it in the long term. However, we hypothesize that these developments should actually be seen as a gateway towards decentralization, as systems like Bitcoin and decentralized exchanges still offer unique complementary functionalities (e.g. open innovation, decentralized, censorship resistant, borderless, ownerless). Furthermore, as we can already see with the political backlash that Libra has received, hybrid projects that in some shape or form have to rely on a more centralized organization, can be pressured more easily and will be hampered in their ability to innovate and expand.

What's next?

The coming months and years we will have to see to what extent these developments will attract institutional investors to the crypto space, as Libra and Venus are currently exposed to substantial scrutiny. Nevertheless, these announcements show thatmomentum is building, restoring some of the trust that was lost with the crypto bubble in 2017.

Series 'AI Metaphors'

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1. The tool
Category: the object
Humans shape tools.

We make them part of our body while we melt their essence with our intentions. They require some finesse to use but they never fool us or trick us. Humans use tools, tools never use humans.

We are the masters determining their course, integrating them gracefully into the minutiae of our everyday lives. Immovable and unyielding, they remain reliant on our guidance, devoid of desire and intent, they remain exactly where we leave them, their functionality unchanging over time.

We retain the ultimate authority, able to discard them at will or, in today's context, simply power them down. Though they may occasionally foster irritation, largely they stand steadfast, loyal allies in our daily toils.

Thus we place our faith in tools, acknowledging that they are mere reflections of our own capabilities. In them, there is no entity to venerate or fault but ourselves, for they are but inert extensions of our own being, inanimate and steadfast, awaiting our command.
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2. The machine
Category: the object
Unlike a mere tool, the machine does not need the guidance of our hand, operating autonomously through its intricate network of gears and wheels. It achieves feats of motion that surpass the wildest human imaginations, harboring a power reminiscent of a cavalry of horses. Though it demands maintenance to replace broken parts and fix malfunctions, it mostly acts independently, allowing us to retreat and become mere observers to its diligent performance. We interact with it through buttons and handles, guiding its operations with minor adjustments and feedback as it works tirelessly. Embodying relentless purpose, laboring in a cycle of infinite repetition, the machine is a testament to human ingenuity manifested in metal and motion.
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3. The robot
Category: the object
There it stands, propelled by artificial limbs, boasting a torso, a pair of arms, and a lustrous metallic head. It approaches with a deliberate pace, the LED bulbs that mimic eyes fixating on me, inquiring gently if there lies any task within its capacity that it may undertake on my behalf. Whether to rid my living space of dust or to fetch me a chilled beverage, this never complaining attendant stands ready, devoid of grievances and ever-willing to assist. Its presence offers a reservoir of possibilities; a font of information to quell my curiosities, a silent companion in moments of solitude, embodying a spectrum of roles — confidant, servant, companion, and perhaps even a paramour. The modern robot, it seems, transcends categorizations, embracing a myriad of identities in its service to the contemporary individual.
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4. Intelligence
Category: the object
We sit together in a quiet interrogation room. My questions, varied and abundant, flow ceaselessly, weaving from abstract math problems to concrete realities of daily life, a labyrinthine inquiry designed to outsmart the ‘thing’ before me. Yet, with each probe, it responds with humanlike insight, echoing empathy and kindred spirit in its words. As the dialogue deepens, my approach softens, reverence replacing casual engagement as I ponder the appropriate pronoun for this ‘entity’ that seems to transcend its mechanical origin. It is then, in this delicate interplay of exchanging words, that an unprecedented connection takes root that stirs an intense doubt on my side, am I truly having a dia-logos? Do I encounter intelligence in front of me?
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5. The medium
Category: the object
When we cross a landscape by train and look outside, our gaze involuntarily sweeps across the scenery, unable to anchor on any fixed point. Our expression looks dull, and we might appear glassy-eyed, as if our eyes have lost their function. Time passes by. Then our attention diverts to the mobile in hand, and suddenly our eyes light up, energized by the visual cues of short videos, while our thumbs navigate us through the stream of content. The daze transforms, bringing a heady rush of excitement with every swipe, pulling us from a state of meditative trance to a state of eager consumption. But this flow is pierced by the sudden ring of a call, snapping us again to a different kind of focus. We plug in our earbuds, intermittently shutting our eyes, as we withdraw further from the immediate physical space, venturing into a digital auditory world. Moments pass in immersed conversation before we resurface, hanging up and rediscovering the room we've left behind. In this cycle of transitory focus, it is evident that the medium, indeed, is the message.
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6. The artisan
Category: the human
The razor-sharp knife rests effortlessly in one hand, while the other orchestrates with poised assurance, steering clear of the unforgiving edge. The chef moves with liquid grace, with fluid and swift movements the ingredients yield to his expertise. Each gesture flows into the next, guided by intuition honed through countless repetitions. He knows what is necessary, how the ingredients will respond to his hand and which path to follow, but the process is never exactly the same, no dish is ever truly identical. While his technique is impeccable, minute variation and the pursuit of perfection are always in play. Here, in the subtle play of steel and flesh, a master chef crafts not just a dish, but art. We're witnessing an artisan at work.
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About the author(s)

FreedomLab Fellow Arief Hühn headed FreedomLab from 2018 until 2023, directing our research and business endeavors with a special emphasis on the impact of emerging digital technologies on the economy, politics and society. He holds a master's degree in communication sciences from Radboud University Nijmegen and a doctorate degree in human-computer interaction from Eindhoven University of Technology.

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