Crypto and the Evolution of Open Source | Summary and Q&A

TL;DR

Open source code has evolved into crypto networks, where tokenized networks change power dynamics and incentivize collaboration and improvement.

Key Insights

• 🤗 Open source code started as a community-driven movement but faced challenges like financial incentives and the tragedy of the commons.
• ✊ Crypto networks with tokenized networks change power dynamics and incentivize collaboration and improvement on a shared computational substrate.
• 🥺 Canonical instances in crypto networks enable easier reuse and convergence on existing services, leading to compounding innovation and value generation.
• 🐕‍🦺 Open source code and implementation in blockchain services provide transparency and allow for improved services and creative remixing.
• 🔉 Blockchain technology can revolutionize industries like finance, media, and identity by providing decentralized, reusable, and collaborative solutions.
• 🎮 Incentives and aligning interests are crucial in designing crypto networks to avoid centralized control and foster true collaboration.

Transcript

hi my name is Devin and I'm a software engineer and writer based out of San Francisco today I'm talking to Dennis and Jesse about the evolution of open source and the evolution of crypto networks as well Dennis you've written quite a bit about the dichotomy between libraries and services can you expand a little bit on that distinction for us well i... Read More

Questions & Answers

Q: What is the main distinction between libraries and services in the context of open source and crypto networks?

Libraries in open source require developers to redeploy and reimplement them, while services in crypto networks are deployed as singular instances that can be reused and improved upon.

Q: How does the deployment of open-source libraries differ for established companies versus individual developers?

Established companies have more resources and a larger user base when deploying open-source libraries, while individual developers have to start from scratch and face asymmetries in leveraging the libraries.

Q: What is the significance of canonical instances in crypto networks?

Canonical instances in crypto networks provide a shared deployment of services, allowing for easier reuse and convergence on existing services, leading to compounding innovation and value generation.

Q: How does blockchain technology enable the reuse and remixing of creative works like songs and software?

Blockchain technology allows for canonical identifiers for creative works, making it easier for developers to remix and reuse them, with incentives for creators as the value of the work spreads.

Q: What are some potential applications of blockchain services beyond finance?

Blockchain services can be applied to media, enabling better creative experiences and remixes, and to identity, providing a canonical source of information for decentralized applications.

Summary

Devin, a software engineer and writer, talks to Dennis and Jesse about the evolution of open source and crypto networks. They discuss the distinction between libraries and services in the crypto world, the power dynamics in open source code, the concept of code deployment and instantiation, and the benefits of using crypto building blocks instead of library building blocks. They also touch on the idea of canonical instances in blockchain services, the advantages of reusing services instead of redeploying them, and the potential for compounding innovation. The conversation explores various examples such as decentralized finance, stable coins, media remixing, and identity in decentralized networks. They also discuss the challenges of governance, forking, and the need for aligned incentives in crypto networks.

Questions & Answers

Q: Can you explain the distinction between libraries and services in the crypto world?

In the crypto world, libraries refer to open source code that developers can collaborate on and improve together. It's like a collection of code that can evolve with the help of the community. On the other hand, services in the crypto world are instantiated versions of these libraries. They are deployed on a blockchain network and provide some utility or functionality. These services can be shared and reused by other developers, creating a network effect. The distinction lies in the deployment and instantiation of the code, making services more powerful and useful than libraries alone.

Q: How do power dynamics play a role in open source code?

Open source code is initially driven by ideology and community values, with the belief that software should be openly licensed and free for anyone to use and collaborate on. However, issues arise when companies and commercial settings benefit from open source code without contributing back to its maintenance and improvement. This results in a tragedy of the commons, where the common resource of open source code is used without proper incentive structures for long-term sustainability and maintenance. Crypto networks, with their tokenized incentives, aim to address this power dynamic by changing the power dynamics and allowing participants to have a stake in the maintenance and improvement of the network.

Q: Can you explain the concept of code deployment and instantiation?

Code deployment involves taking an open source library and running it on a specific platform or infrastructure. In the case of open source code, developers often have to start from scratch, set up their own infrastructure, and deploy the code themselves. On the other hand, code instantiation refers to deploying code on a blockchain network as a service. These services are shared and reusable by other developers in the network. This means that developers do not have to reinvent the base functionality of an application every time; they can simply build on top of existing services. The deployment and instantiation of code allow for greater efficiency and collaboration among developers.

Q: What are the advantages of using crypto building blocks instead of library building blocks?

Crypto building blocks, such as smart contracts deployed on a blockchain network, offer several advantages over traditional library building blocks. Firstly, the deployment of these building blocks creates a canonical instance that can be referenced and used by other developers. This makes it easier for developers to follow existing rules and reuse services, rather than having to redeploy and reinvent the wheel. Additionally, crypto building blocks are open and transparent. Developers can inspect the code and understand how the service works, enabling them to contribute improvements and modifications. This openness and participation foster innovation and collaboration in the ecosystem.

Q: How does the value of a service in a crypto network drive back to the original creator?

In a crypto network, the value of a service or piece of content is directly linked to its usage and reuse. The more a service is utilized and propagated within the network, the more value is generated for the original creator. This is possible because crypto networks have mechanisms, such as token incentives, that allow for a flow of value back to the creator. For example, if a song is deployed as a service on a blockchain network, the more it is listened to and remixed, the more value drives back to the original creator. This incentivizes creators to continue producing original works and benefits all participants in the ecosystem.

Q: How does the concept of a fork in crypto networks address the concentration of value and potential problems with dominant control?

Forking is a theoretical solution to the concentration of value and potential problems with dominant control in crypto networks. If participants are not satisfied with the current state of a network or service, they have the option to fork it, creating their own network with their own set of rules and governance. However, forking comes with its own challenges, such as social and coordination hurdles. It may not be easy for participants to start from scratch and build a critical mass around their new network. Alternatively, formal governance models and open back-ends provide a more practical approach, where the original deployment of a service can be improved and evolved by the community, redirecting attention and improving the network without the need for a complete fork.

Q: How can crypto networks address the challenge of identity and credit scoring in decentralized systems?

Crypto networks can address the challenge of identity and credit scoring by providing a canonical source of identity information that is open, transparent, and not controlled by proprietary sources like Google or Facebook. This would allow developers to access comprehensive and reliable identity data without being dependent on centralized services. This canonical identity source could be built on a blockchain network, where incentives exist for developers to improve and contribute to the system. This would enable a more secure and reliable identity system, which in turn could support new financial products and services in the crypto space.

Q: How can crypto networks foster collaboration and reuse of services?

Crypto networks provide the infrastructure for canonical instances of services to be shared and reused by developers. This encourages collaboration and reduces the need for developers to reinvent the wheel. For example, in the case of decentralized finance, developers can build on existing protocols like decentralized exchanges to create new financial applications such as lending and derivatives. Similarly, in media, having a canonical identifier for content like songs enables easy remixing and reuse, driving value back to the original creators. The incentives for collaboration and reuse are built into the crypto network, creating an ecosystem that benefits both creators and developers.

Q: How can the concept of a canonical instance benefit content creators and developers?

The concept of a canonical instance in crypto networks benefits content creators and developers in several ways. Firstly, it allows for easy reuse and remixing of content, driving value back to the original creator as their work propagates within the network. Creators can set royalties on their content and receive compensation as it is reused. Secondly, developers can compete to build better experiences and services on top of existing canonical instances, instead of having to build everything from scratch. This leads to more creativity, innovation, and better experiences for users. The open and transparent nature of crypto networks also enables creators and developers to inspect and modify the code, allowing for continuous improvement and collaboration.

Q: How could crypto networks revolutionize the media industry?

Crypto networks could revolutionize the media industry by offering a new model for creativity and content distribution. The concept of canonical identifiers for media, such as songs, images, or videos, allows for easy remixing and reuse of content. This creates a vast library of content that developers can build upon, leading to more creative and innovative experiences for users. With proper attribution and compensation systems in place, the value generated by the widespread reuse of content can flow back to the original creators. This decentralized and collaborative approach to media opens up new possibilities for content creators, developers, and users alike.

Q: How are the incentives aligned for collaboration and growth in crypto networks?

In crypto networks, the incentives are aligned for collaboration and growth through mechanisms like token incentives and open participation. When a token is used to mediate access and use of a service, all ecosystem participants are incentivized to support and improve the service. As more participants rely on the service, its value increases, making it more valuable for everyone. This alignment of incentives encourages entrepreneurs and ecosystem members to contribute to the growth and improvement of the service. The openness and transparency of crypto networks also foster collaboration, as participants can inspect and modify the code, resulting in compounding innovation and growth.

Takeaways

The evolution of crypto networks and the concepts of open source code have brought about significant changes to the world of software development and content creation. By deploying code as services on blockchain networks, developers can create powerful and reusable building blocks, leading to more efficient collaboration and innovation. The ability to reference canonical instances of services reduces the need to reinvent the wheel and allows developers to build on top of existing infrastructure. This open and collaborative approach ensures that more value flows back to content creators, and fosters a ecosystem where all participants are aligned in their incentives to grow and improve the network. As crypto networks continue to evolve, they have the potential to revolutionize various industries and drive compounding innovation for creators, developers, and users alike.

Summary & Key Takeaways

• Open source started as a community-driven movement, but faced issues like financial incentives and the tragedy of the commons.

• Crypto networks, with tokenized networks, change power dynamics and allow for collaboration on a shared computational substrate.

• Blockchain services function as singular monopolies that dominate the network, but with open source code and implementation.