Ethan Buchman, the CEO of Cycles Protocol and co-founder of Cosmos, recently sat down for an interview with Matt Zahab, the host of Cryptonews Podcast. In the interview, Buchman discussed various topics including the creation of an internet of blockchains, the nature of money, and the importance of understanding the balance sheet.
According to Buchman, the motivation behind the creation of Cosmos was to build a platform that is more accessible and interoperable for different communities. Unlike other projects that focus on one blockchain or token, Cosmos aims to create an ecosystem of blockchains that can communicate with each other. This idea led to the development of the Inter-Blockchain Communication Protocol (IBC), which allows for seamless interoperability between different blockchains.
Buchman also emphasized the importance of understanding the nature of money. He explained that while money is commonly associated with payments, a significant portion of transactions is done on credit. This interconnectedness can lead to inefficiencies and a lack of liquidity in the network. However, by taking a global view and understanding the network structure of debts, it is possible to clear payments without using as much money.
Furthermore, Buchman highlighted the importance of considering both the asset and liability sides of the balance sheet. While many in the crypto industry focus on the asset side, Buchman believes that clearing liabilities is equally important. Traditional banking has long been able to clear large volumes of debt with minimal amounts of money, and Buchman believes that Cycles Protocol can enable similar capabilities in the crypto world.
Overall, Buchman sees Cycles Protocol as the future of finance. By optimizing the use of different assets for payment and reducing risks through the structure of the graph, Cycles Protocol opens up new possibilities for issuing different kinds of money and settling debts.
In addition to these topics, Buchman also discussed his early experiences in the crypto world, the importance of knowing the history of banking, and why he believes Cosmos is the best place to launch a blockchain.
To listen to the full interview, you can visit the podcast episode here.