An interview with Rockaway Blockchain (HCPP 2019)

Okay, here's a synthesized summary of the Rockaway Blockchain podcast interview, broken down into the requested sections.

1. Narrative Summary

Rockaway Blockchain, a relatively new fund spun off from the traditional European venture capital firm Rockaway Capital, is making a name for itself by focusing on the infrastructure layer of the cryptocurrency ecosystem. Unlike many crypto investors, they don’t invest directly in cryptocurrencies but instead target areas like decentralized exchanges, DeFi platforms (lending, borrowing), and resource monetization solutions. The fund, with $100 million to deploy across 40 companies, prioritizes projects with existing user traction and real-world use cases, learning from past mistakes and the excesses of the 2017 ICO boom. They’ve already invested in nine companies, primarily in the US and Asia, and are particularly excited about the potential of decentralized insurance and the overall growth of the DeFi space, even acknowledging the role of speculation in driving adoption. While they recognize the potential of technologies like decentralized storage (Filecoin), they believe the timing isn't quite right, and emphasize the importance of practical application and solving genuine problems, rather than simply applying blockchain technology for its own sake. The interviewers also shared personal anecdotes, highlighting the challenges of crypto payments and drawing parallels between market strategies and cultural references.

2. Main Topics Discussed

• Investment Focus: Infrastructure investments in crypto (exchanges, DeFi, resource monetization) rather than direct cryptocurrency investments.
• DeFi: Emphasis on DeFi as a key area of traction and potential, including lending/borrowing platforms and decentralized derivatives.
• Resource Monetization: Discussion of decentralized storage and networking, acknowledging the need for significant improvements before widespread adoption.
• Investment Strategy: Prioritizing projects with existing user traction and real-world use cases; avoiding very early-stage ventures.
• Use Case Validation: Focus on practical applications and contrasting with the speculative ICO era. Recognizing speculation as a valid, albeit temporary, driver of adoption.
• Emerging Use Cases: Decentralized insurance, lending/borrowing, and DeFi platforms.
• Timing & Lessons Learned: Importance of timing in adoption (Pets.com vs. Chewy.com), and reflecting on past failures (BTC Jam).
• Enterprise Blockchain: Critique of "blockchain for enterprise" as a standalone value proposition, emphasizing its utility in scenarios involving distrust between parties.
• Digitization vs. Blockchain: Highlighting that many problems are due to a lack of digitization, not a need for blockchain.
• Data Integrity & Oracles: Concerns about data integrity and the reliability of oracles in decentralized systems.

3. Key Quotes

• "We seek 'real value for users' in DeFi." - Dushan (Chief Investment Officer)
• "It's only valuable when connecting multiple parties who don't trust each other. Otherwise, a centralized database is more efficient." - Regarding blockchain for enterprise.
• "Speculation has been a significant driver of cryptocurrency adoption and trading volume." - Acknowledging the role of speculation.
• "Many problems are simply a lack of digitization, not a need for blockchain." - Highlighting the importance of practical application.

4. People Mentioned

• Dushan: Chief Investment Officer at Rockaway Blockchain
• Miloš Forban: (Likely associated with Rockaway Blockchain, role unspecified)
• Andres Horowitz: (Mentioned in passing, likely as a reference point for investment strategies)
• Steve Jobs: (Referenced in connection to market timing and product launches)
• Stanley Kubrick: (Referenced in connection to market timing and being a "second mover")
• Ben: (Creator of point-of-sale devices)
• Alex: (From Dragonfly Capital - likely an investor or advisor)
• Theo: (Likely associated with Rockaway Blockchain, role unspecified)
• Victor: (Likely associated with Rockaway Blockchain, role unspecified)
• Jeffrey Moore: (Author of "Crossing the Chasm")

5. Bitcoin Price (and other Crypto Values)

No specific Bitcoin prices were mentioned. However, the following crypto values were discussed:

• Filecoin: $250 million (investment amount)
• Nexus Mutual: $2 million (current investment), $600,000 (previous investment)
• Celsius: $250 million (investment amount)
• Compound: $150 million (investment amount)

Let me know if you'd like any adjustments or further details!