30s Summary

Jlabs Digital executive Ben Lilly explains the roles of Bitcoin and Ether, explaining that owning Bitcoin is akin to having paid-for data stored on blockchain, whereas Ether allows payment for computational power on the Ethereum Virtual Machine. He highlights the importance of the Ethereum network as a consensus system that supports a form of economic expansion that doesn’t require formal permissions. He further suggests that Ethereum can play a crucial role in advancing globalization and mentions artificial intelligence agents that are beginning to create economic value independently in this context.

Full Article

Ben Lilly, a boss at Jlabs Digital, has been talking about why we might hold something like Bitcoin or Ether. You know, aside from the usual big money or risk-taking reasons.

So, let’s think about why we might keep some Bitcoin or Ether lying around.

The idea Ben wants us to grasp here is this: It’s not because we’re scared of the world imploding or money becoming worthless or losing all our stuff. Those are good reasons, sure, but they’re not main ones.

When we hold Bitcoin, we’re basically paying for little bits of data to be stored on something called a blockchain. It’s like we’re keeping our own private digital secrets (made up of 1s and 0s, to be exact) in a special digital box. It’s a new type of money — like paying to keep our information stored safely.

Ether, our other cryptocurrency friend, is kind of similar. But it isn’t used to store data, it’s used to pay for computer powers on a thing called Ethereum Virtual Machine. It’s not about making money by betting on price increases or offering it up as a collateral for a loan. In fact, you’re basically paying to make changes in the system without asking for permission.

But why does any of this matter?

Well, ETH, the token of Ethereum, is a way of saying we’re all in agreement about something. It’s an agreement made on a massive network that anyone can use and everyone can see. It’s like a universal law about who owns what and anyone can show their ownership anytime they want, for any reason.

The network is a big system where you have to pay to make changes based on what you need. It’s a rally point that promotes economic growth without asking for permission. No need for formal agreements to interact with apps. This ability to expand economically is one of the most crucial features of this new form of money.

Now, let’s talk about globalization.

This is the idea that the world is becoming more connected and reliant on each other. It started with the creation of the United Nations in 1945 right after World War II and has grown from there, leading to greater economic growth than ever before.

The point is that if we can improve on these traits of cooperation, consensus, and better defined ownership rights, we can speed up this expansion even more. This is what they mean by globalization 2.0 and Ethereum is just the technology we need to get it started.

Now, to make it all work, there are costs. But these costs of running a global organization are well worth it. That’s why a system that makes organizing globally easier and more efficient is incredibly valuable.

Take for instance, a recent example from the world of crypto which is AI agents.

A good case in point is the Truth Terminal – an AI that got famous on social media after accepting a Bitcoin grant to build its capabilities and backing a coin on Solana, a different blockchain. It mostly manages itself but still needs people to help along the way.

Looking at crypto, you realise we can start getting rid of these limitations and the AI can actually carry out economic activities on its own.

Imagine this, an AI spins up a wallet on the Ethereum network, the XMTP protocol giving it a way to talk to the world. It can rent more computing power as it needs, accept payments for its services or create communication channels after registration.

This is all just the tip of the iceberg and it’s totally possible! We can see this AI agent begin to create economic value all on its own.

To make it illustrative, think about how an AI could use satellite images to give a car driving advice in a city. You can see how a more efficient AI in a rapidly evolving, flexible, digitally connected world could be a game changer, the start of a new phase of globalization.

The economy of the future will fuel this next phase of globalization and at the heart of it, is a currency that pays for the resources of the system. That’s the future of money – the cost of agreement on a global scale!

This article is for general info and should not be taken as any kind of advice.