Consensus 2024: Key Takeaways
In November 2022, following a series of major scandals in the ecosystem, crypto was going through a rough patch. Both old and new users were turned off by poor price action and the lack of usable dApps. Lawmakers and regulators were on a path to completely do away with crypto as much as they could.
Fast forward to 2024, and the picture looks quite different. Bitcoin is trading near all-time highs, other digital assets are springing to life, and whole new categories of crypto are emerging rapidly, as seen this year at Consensus. The adoption of Bitcoin ETFs by trusted financial names like BlackRock and Fidelity, starting in January, has been essential for legitimizing Bitcoin and the entire blockchain ecosystem. It’s safe to say we are witnessing the resurgence of crypto.
I had the privilege of attending Consensus 2024 in Austin, Texas, and to say it was electrifying would be an understatement. This year’s event showcased a diverse lineup of speakers, including presidential candidate Robert F. Kennedy Jr., founder of a16z Crypto Chris Dixon, CEO of ARK Invest Cathie Wood, and many more. They explored various aspects of blockchain technology, decentralized finance, and bridging the gap between Web2 and Web3. Remarkably, even amid economic and geopolitical uncertainties, the conference radiated with enthusiasm for a bright future. Builders, entrepreneurs, and blockchain enthusiasts alike shared their optimism and provided insights into ongoing technical innovations.
Key Themes:
Real World Assets (RWA)
One recurring theme was the intersection of traditional financial systems and blockchain innovation, leading to a new method for managing and allocating assets through Real World Assets (crypto RWAs). By linking tangible assets with their digital equivalents, RWAs facilitate a seamless blending of the real and digital. Representatives of leading RWA projects, such as Justin Schmidt at Ondo Finance and John Mullin at Mantra, shared their insights on the future of RWA tokenization.
This is certainly an area I’ll continue to monitor, especially with institutional interest growing, most notably from BlackRock, which entered the real-world asset (RWA) tokenization sector in April by launching its USD Institutional Digital Liquidity Fund on Ethereum. The wide acceptance of crypto RWAs faces challenges such as regulatory compliance and market acceptance.
RWAs on blockchain are poised to transform asset management, investment, and ownership, offering a more accessible, transparent, and efficient marketplace for assets.
Decentralized Physical Infrastructure Networks (DePIN)
DePIN, short for “decentralized physical infrastructure networks,” was another hot topic. DePIN combines the digital strengths of blockchain with tangible infrastructure. At its core, DePIN operates as a peer-to-peer (P2P) network where participants contribute physical assets such as data storage, wireless connectivity, sensors, or energy grids. In exchange, they receive rewards based on the network’s incentive structure. Legacy projects like Helium and STEPN have led the way during previous cycles’ booms, showcasing the potential and impact of DePIN.
CEO of Helium, Abhay Kumar, shared his thoughts on how DePIN solutions are creating new and unique applications in areas such as Wi-Fi, car user data, and online mapping. I’m especially curious to see how this area evolves, as we have seen initial success from the mentioned projects but also unsustained hype. Next-generation solutions like Hivemapper have recently entered the market, and time will tell if DePIN can capture mindshare from purely DeFi projects.
Artificial Intelligence (AI)
Unsurprisingly, AI was probably the hottest topic, with projects leveraging AI in various ways. The breadth of AI applications was impressive, spanning AI economy creation, data and AI marketplaces, AI model training and chatbots, and decentralized AI infrastructure.
This is the area where I learned the most. Builders are leveraging underutilized GPUs and renting them out through platforms like Render for tasks such as video processing, gaming, and AI computing. Some projects I came across provide platforms for AI developers to upload their models onto the blockchain and incorporate them into smart contracts, facilitating a decentralized marketplace for computational resources. I even encountered projects aiming to turn GPUs into financial instruments, envisioning a world where one can speculate on the price of GPUs.
Final Thoughts
Consensus 2024 clearly demonstrated that enthusiasm for blockchain remains high, and the community is actively building and innovating. AI stole the show, highlighting its growing impact across multiple avenues, from enterprise solutions to blockchain integration.
Consensus 2024 was an amazing experience that brought together crypto veterans and the crypto-curious alike. The key takeaways above just scratch the surface of what is to come in the near future for blockchain and AI.
If you’re an investor or builder in the space and would like to connect, feel free to reach out to me at Ernest@Boldstart.vc or on twitter @ErnestAddison21