A collection of letters encompassing simple insights and recognition of foundational shifts that any bright minds trapped within the old norms of a VC mindset can use to break free, whether they are just starting their journey or reflecting back on what they wish someone had told them in their early days.
As any good money making adventurer setting off to discover new bags knows, risk is everything.
From how much appetite you have for uncovering unique opportunities that others don’t dare to reach for, to how much exposure to the downside that you are able to mitigate.
What fewer have real knowhow for is how money savvy translates to equivalent accounting for the risks inherent in information management.
How much downside risk do you expose yourself to as the surface area of information made available to potentially bad actors in globe spanning open markets and networks increases at an exponential pace?
What can you do fair arbitraging traveler to reduce your wasteful footprint, to expose only the most efficient and bare minimum of information necessary for any transaction or interaction?
Well, counter intuitively, in this situation that you find yourself in, the less knowledge that you have the better.
In fact, Zero Knowledge is exactly what you need.
Zero Knowledge Proofs, that is.
Mathematical functions that allow you to prove that you know something without having to reveal what that something is.
Let’s break them down with one of the most straightforward explanations available anywhere
Zero Knowledge proofs are easy to understand. They are based on a line of reasoning that we commonly use in our day to day life. It is the same line of reasoning we use when we make assumptions about our surroundings.
If you sit in a room with no windows and hear the pitter-patter of rain on the roof, you assume that it’s raining even if don’t see the rain. When you come home from work and your roommate’s car is in the driveway, you assume your roommate is in your house even if you don’t see them in their physical form.
- Hadas Zeilberger
So now that we grok the basics, what’s the use?
Well, imagine how much downside risk you can mitigate when you need to leave less of your digital exhaust all over the place. Not only does deal flow arbitrage and exchange become significantly more streamlined, but you are also able to gain in more complex economic activity at substantial scale.
Zero Knowledge Proofs used in a Roll Up context for Blockchain scales up the security profile, throughput rates, and overall power of what web3 can do for you and all other users of the network.
Not to mention, the functional privacy and its importance in defending the veracity of truly personal property. Authorisation, authentication and even lending procedures become significantly more fine grained, allowing for greater flexibility for would be hyper scaling financiers— like you, young reader.
Any value brought in from sales of NFTs minted through this article will be used for building out the F₃M Realm treasury, which will eventually be governed and coordinated by the DAO, furthering to decentralise the web3 fashion capital stack.