Multicoin Co-founder: Interpretation of Modular, Rollup Application Chains and DePin Track
The Ethereum community is overly convinced that RollUps are the right solution, while in reality, there may be very few use cases that truly require them.整理 & 编译：深潮 TechFlow
In a recent Lightspeed podcast, Kyle Samani, co-founder of Multicoin Capital and one of the most independent thinkers in the cryptocurrency space, shared his insights on the development of various tracks in the current crypto market, including "holistic L1," the value of global ledgers, how protocols establish moats, and why DePIN is seeking product-market fit.
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Here are the main points from this conversation, transcribed and organized by 深潮, highlighting the key insights:
Hosts: Mert & Garrett, Lightspeed (Twitter @0xMert_ and @GarrettHarper_)
Speaker: Kyle Samani, Co-founder of Multicoin (@KyleSamani)
Video Attribution: Lightspeed Podcast
Program: Link
Release Date: August 3
Learning from History: Blockchain Modularity or Monolithicity?
The hosts mentioned a major debate in the current crypto space, namely modularity vs. monolithicity.
Kyle believes the term "monolithic" is a misnomer; a more accurate term should be "integrated." He further explained that this debate has existed historically, citing the example of IBM mainframes:
In the early history of computing, IBM mainframes were monolithic systems where all components were designed and manufactured by IBM, including hardware, operating systems, and applications. This monolithic design made the system more stable and efficient but also limited the market entry and innovation space for other vendors.
Over time, computer technology began to shift towards more modular designs, allowing different vendors to provide various components for the same system. This modular design increased system flexibility and innovation but also introduced more complexity and compatibility issues.
Kyle Samani wants to emphasize that the debate between modularity and monolithicity in technology history is not new. He believes the key is not to decide which configuration (modular or monolithic) is correct, but to recognize that both configurations can often coexist and be chosen based on specific applications and needs.
At the same time, he pointed out the complexity of current modular solutions. For example, if a user's assets are on another chain, how do they transfer them? Or how do address formats change between different EVM L2s? This complexity is often underestimated by most developers.
Community and financial incentives: Kyle mentioned that a major difference between the cryptocurrency space and other tech markets is the large number of public holders, many of whom make decisions based on their investment choices, and this "holder effect" has not yet been clearly defined in determining the traditional winners and losers of technology.
He also noted that financial incentives are important, and the term "community" is often used as an excuse for a lack of thought.
Rollups and Application Chains
When asked about his views on Roll-Ups, Kyle stated that he does not oppose their concept. He believes the Ethereum community is overly convinced that Roll-Ups are the right solution, while in reality, only a few use cases truly require them.
He mentioned that while Roll-Ups may be useful in certain cases, they are not a "one-size-fits-all" solution. Kyle's viewpoint is that the most suitable scaling strategy should be chosen based on specific applications and needs, rather than solely relying on Roll-Ups.
Kyle pointed out that the concept of App Chains is not new, with Cosmos and Polkadot being two of the earliest platforms to promote it. He frequently communicates with the teams from Cosmos and Polkadot to inquire about the App Chains they are customizing.
Regarding application chains, he believes that derivatives exchanges might be the only meaningful application due to their unique properties, such as high-frequency trading and latency issues. Beyond that, he has not seen any other compelling applications.
Different scaling strategies (such as Roll-Ups and App Chains) have their respective advantages and applicable scenarios. The choice of which strategy to use should be based on specific applications and needs.
Composability and Global Shared State Blockchain Ledgers
Kyle explained the concept of Composability. He believes Composability is not just about atomic transactions and flash loans. For him, Composability is more about how to make all different systems and applications work seamlessly together.
Kyle distinguishes between two types of software: rich software (like infinite video streams, tweets, etc.) and scarce software (primarily about money and finance). He introduced these two concepts to emphasize the uniqueness of cryptocurrency and blockchain technology. Traditional software development mainly focuses on rich software, while blockchain technology provides a unique platform for developing scarce software.
He believes that blockchains are asset ledgers that simply track who owns which coins. Ideally, there would be only one asset ledger in the world, tracking everyone's ownership. This would be a clear and simple construct.
Advantages of a single asset ledger: Kyle believes that a single asset ledger can provide more scale than people expect while still enforcing the social attributes of blockchain.
For blockchains, there is no need to have 200 computers in one home to validate these systems and data. He compared the physical rules of the real world with the asset ledgers of the digital world, emphasizing the advantages of a unified asset ledger in enforcing asset ownership globally.
Moats in the Crypto World, How to Bridge to the Traditional World, and Solana's Phone
Kyle discussed how crypto projects can establish moats. He believes that unlike traditional businesses, crypto projects cannot rely on traditional moats such as network effects or economies of scale.
Instead, they need to find new ways to protect themselves from competitive threats. One major moat for crypto projects is their community. A strong, active community can provide ongoing support and innovation for the project.
Kyle mentioned the concept of "Meat Space," a term used to describe the real world (as opposed to the digital world). He discussed how to combine crypto technology with the real world to create new value and opportunities. He believes that while crypto technology has enormous potential in the digital world, its applications in the real world remain limited.
He considers the Saga Phone a great example of how to combine crypto technology with real-world products and services. This phone features unique crypto functionalities, such as a built-in hardware wallet and encrypted communication tools.
Kyle expressed interest in Solana Mobile and mentioned that he owns a Saga phone. He believes that while the Saga phone may not sell in large quantities, the underlying Solana Mobile Stack (SMS) is free for any Android OEM to use. He hopes that other phone manufacturers will implement SMS, leading to more distribution opportunities.
About DePIN (Decentralized Infrastructure Networks)
Kyle explained the concept of DePIN, emphasizing its importance, especially for projects that can leverage existing behaviors (like driving). He believes that to make these DPIN systems work, you need to have some structural cost advantage compared to big companies like Google or Amazon.
Kyle emphasized that if consumers purchase some hardware for personal use and can repurpose that hardware to become an income-generating asset, this is the simplest way to gain a structural cost advantage.
He mentioned two types of DePIN networks: GPS-dependent and server networks. He compared Filecoin and Hive Mapper to explain the differences between these two networks.
Kyle cited examples of Hive Mapper and Helium, explaining why micropayments are crucial for the operation of these systems. He emphasized that if you expect the supply side of these networks to come from hundreds of thousands or millions of people around the world, involving small amounts, multiple currencies, countries, and geographies, then the only answer is blockchain.
Kyle explained why it is necessary to reward early participants in the network. He believes that early participants take on greater risks because they are uncertain whether the network will reach sufficient scale to attract users. Therefore, they should be rewarded with more tokens.
Kyle expressed skepticism about the irreplaceability of GPUs and edge computing. He believes that when the demand for a certain service increases 100-fold or 1000-fold in a short period, it is clear that all available software will reconfigure itself to fit all available hardware.
About Spatial Computing
Kyle Samani discussed spatial computing as a new computing paradigm, particularly in the context of augmented reality (AR) and virtual reality (VR). He mentioned Apple Vision Pro and its impact on this new paradigm.
Kyle believes that if people spend more time in 3D virtual spaces and interact with others and non-player characters (NPCs), these systems will have their own economic systems. These economic systems may operate on cryptocurrency rails, as they provide a more elegant and acceptable solution.
Kyle mentioned the two major VR competitors currently in the market: Apple and Facebook (now called Meta). Apple Vision Pro focuses more on personal computing experiences, such as productivity and home entertainment, while Quest focuses more on social interaction and gaming.
How new technologies are adopted: Reflecting on history, he discussed the adoption of desktop computers in the 1980s. He mentioned how identifying key use cases (like documents and Excel) guided the adoption of desktop form factors; for mobile phones, the most important applications were making calls and sending texts. For the Apple Watch, the initial focus was on third-party applications, but over time, the emphasis shifted to health and fitness.
Kyle's Personal Work-Life Methodology
Kyle emphasized the importance of first principles thinking. He believes that rather than being called "different," it is more meaningful to think from first principles: starting from basic facts and truths rather than relying on existing viewpoints or traditions. This way of thinking encourages fundamentally rethinking problems rather than basing them on existing solutions or common practices.
He refines and improves his thinking through writing. He believes writing is a great way to clearly express his views and refine his articles through continuous revision and editing.
He suggests that those who wish to improve their thinking quality should write regularly and recommends writing at least one article per week, whether for public release or just for personal reference.
How to cultivate one's communication style: Kyle's communication style is direct and authentic. He encourages members of the Multicoin team to adopt this style as well. Writing, especially regular writing and self-editing, can help people express their views more clearly and concisely.
Advice for founders: Listen to the opinions of crypto Twitter, but do what you believe is best. He reiterates the importance of regular writing, not only to improve one's thinking quality but also to notice events or viewpoints in daily life that may be worth writing about.
