Exploring the Future of Blockchain with Columbia Professor Omid Malekan on Bankless
Welcome back to Bankless, where we explore the frontier of internet money and finance. In this episode, we are thrilled to host Omid Malekan, a professor at Columbia Business School, who has been teaching crypto since 2019 and authored the insightful book, Re-Architecting Trust. Malekan is renowned for simplifying complex crypto topics, earning him the title of “Explainer in Chief” in the blockchain space.
What’s Happening in Crypto Right Now?
With so many questions surrounding the world of blockchain—Why is Ethereum’s price low? Are Ethereum Layer 2s parasitic? What’s the true value accrual for ETH?—this episode is packed with timely and critical discussions. Malekan helps us break down these pressing issues, providing clarity and perspective on the evolving landscape of blockchain technology.
Why Ethereum’s Price Is Low:
One of the episode’s key discussions revolves around the current state of Ethereum’s price and its perceived sluggish growth. Malekan sheds light on the factors behind this trend, offering insights into the long-term value proposition of Ethereum and whether ETH is positioned as a high-quality liquid asset (HQLA) in the evolving financial ecosystem.
Layer 2 Solutions: Parasitic or Supportive?
Layer 2 solutions like Optimism and Arbitrum are central to the Ethereum scaling debate, but are they actually benefiting Ethereum or siphoning value away from the main chain? Malekan tackles the argument that L2s might be parasitic, explaining how they contribute to or detract from Ethereum’s long-term sustainability.
What Blockchains Are Good For: A Deep Dive into Value and Purpose
Malekan provides a clear explanation of what blockchains are fundamentally designed to do, particularly in relation to trust, verifiability, and integrity. In an era where trust in traditional institutions is eroding, blockchain offers a new paradigm of digital scarcity, property rights, and bearer assets. Malekan explains how these concepts apply to both crypto natives and those from the world of traditional finance (TradFi), helping to bridge the gap between these two worlds.
What Makes a Good Blockchain?
We explore Malekan’s criteria for evaluating a blockchain, asking: What actually makes a good blockchain good? Whether you’re a TradFi veteran or a newcomer to the crypto world, understanding the qualities that define a successful blockchain is crucial. Omid explains these qualities using real-world examples from Bitcoin, Ethereum, and the ongoing battle of Layer 1 networks.
Blockchain Wars: ETH vs. SOL and the Alt-L1 Landscape
Another hot topic is the ongoing competition between Layer 1 blockchains, notably Ethereum and Solana. Dubbed the “Blockchain Wars,” we discuss the strengths and weaknesses of these networks. Ethereum is widely seen as the home of decentralized finance (DeFi) and programmable money, while Solana is emerging as a high-speed competitor, positioning itself as the decentralized Nasdaq. Malekan gives his expert take on these rivalries, offering insight into whether Solana is truly a threat to Ethereum’s dominance.
TradFi Lessons for Crypto
Despite crypto’s innovative potential, Malekan emphasizes that there are valuable lessons to be learned from the traditional financial world. He highlights the generations of wisdom baked into TradFi systems and argues that, while crypto has made significant strides, the builders and leaders in the crypto space must continue learning from the old guard.
Generational Shifts and the Future of Crypto Adoption
As we zoom out to the broader socio-economic context, Malekan discusses how generational shifts are shaping the future of crypto adoption. While older generations (boomers) may resist these innovations, younger generations (zoomers) are increasingly adopting and embracing crypto. What does this mean for the future of blockchain technology, and how will these generational dynamics shape the path forward?
The Endgame for Ethereum and Crypto
Finally, we tackle one of the most pressing questions in the crypto space: What’s the endgame for Ethereum and crypto as a whole? Malekan shares his thoughts on what the future holds for Ethereum, including how it fits into the broader macroeconomic picture. We also dive into his views on the evolution of the financial system and how crypto can coexist with, and even transform, the traditional world of finance.