I was asked to summarize what would be needed for success apart from working technology (which we pretty much have)? My answer was four things:
- A sustainable business model
- Anti-trust enforcement
- The killer app
- A way to remove content
In the wake of Nintendo's recent lawsuits against other ROM distribution sites, major ROM repository EmuParadise has announced it will preemptively cease providing downloadable versions of copyrighted classic games.Below the fold, some comments on this threat to our cultural history.
Filecoin needs to generate $25.7M/yr over and above what it pays the providers. But it can't charge the customers more than S3, or $0.276/GB/yr. If it didn't pay the providers anything it would need to be storing over 93PB right away to generate a 10% return. That's a lot of storage to expect providers to donate to the system.On my bike ride this morning I thought of another way of looking at FileCoin's optimistic economics.
|The blockchain trilemma|
much of the innovation in blockchain technology has been aimed at wresting power from centralised authorities or monopolies. Unfortunately, the blockchain community’s utopian vision of a decentralised world is not without substantial costs. In recent research, we point out a ‘blockchain trilemma’ – it is impossible for any ledger to fully satisfy the three properties shown in Figure 1 simultaneously (Abadi and Brunnermeier 2018). In particular, decentralisation has three main costs: waste of resources, scalability problems, and network externality inefficiencies.Below the fold, some commentary.