Ethan Buchman, CEO of Cycles Protocol, Discusses Money History, Cosmos Ecosystem, and Collaborative Finance

Ethan Buchman Interview: Creating an Ecosystem of Blockchains

Ethan Buchman, the co-founder of Cosmos, discussed the vision behind creating an ecosystem of blockchains that prioritize sovereignty, interoperability, and accessibility:

• Traditional blockchain approaches were limited, leading to the development of a more generalized platform.
• The goal was to empower communities to build their own applications, infrastructure, and economies without sacrificing independence.
• The concept of an internet of blockchains, facilitated by the Inter-Blockchain Communication Protocol (IBC), emerged to connect sovereign communities.

The ICA Controller

The ICA Controller sub-module on Cosmos Hub allows users to perform actions on other chains using their Hub accounts.

Clearing More Debt with Less Money

Ethan Buchman highlighted the importance of understanding the nature of money and debt:

• Money is not just a medium of exchange but also represents a web of interconnected debts.
• A network perspective reveals inefficiencies in traditional payment systems, emphasizing the need for a global view to optimize liquidity.
• By leveraging network structures, it is possible to clear debts with minimal cash, reduce leverage, and enhance liquidity management.

The Power of Clearing Liabilities

Buchman emphasized the significance of clearing liabilities in the financial system:

• Bankers historically have cleared massive debts with minimal liquidity, showcasing the power of clearing mechanisms.
• The Cycles Protocol aims to revolutionize debt clearing by enabling efficient use of assets for payments and settlements.

Exploring the Full Story of Money

Buchman urged a comprehensive understanding of money beyond assets, emphasizing the role of liabilities in financial systems:

• Banking’s strength lies in clearing debts efficiently, a function that traditional institutions have mastered over centuries.
• The Cycles Protocol introduces an open clearing protocol to optimize debt clearing and asset utilization.

Additional Insights from the Interview

In the interview, Ethan Buchman also touched upon various topics, including:

• Early interactions with Bitcoin and Ethereum pioneers.
• The transformative potential of money in blockchain ecosystems.
• The historical significance of banking practices in debt management.
• The promise of collaborative finance and blockchain innovations.

About Ethan Buchman

Ethan Buchman is a prominent figure in blockchain technology, known for his interdisciplinary approach and innovative contributions:

• Co-founder of Cosmos and CEO of Informal Systems.
• Founder of Cycles Protocol, driving advancements in decentralized systems.
• Academic background in Biophysics, with research contributions across institutions.