Coinbase CTO’s 10 Reasons Why ‘All Property Becomes Cryptography’

Key Insights

• The former Coinbase CTO recently discussed a future where “all property becomes cryptography.”
• He noted that trillions of dollars worth of digital gold (Bitcoin) is already secured onchain.
• Srinivasan strongly believes that the GENIUS Act will also take every other asset onchain.

Balaji Srinivasan, a former Chief Technology Officer (CTO) at Coinbase and the founder of Network State, is in the spotlight.

He recently took to X to discuss a future where “all property becomes cryptography.”

Citing factors such as the recent legalization of stablecoins through the GENIUS Act, Srinivasan noted that it is possible to secure and manage all valuable assets, including stocks, bonds, houses, and vehicles, through blockchain technology.

Coinbase Former CTO on Property Cryptography

On July 27, the former Coinbase CTO referenced a post from four years ago, which discussed Non-Fungible Tokens (NFTs) and Ethereum-based smart locks for doors.

Notably, he highlighted that this holds potential to transform access and ownership verification globally.

Srinivasan began his long post by stating that “All property becomes cryptography,” listing ten reasons to substantiate his claim.

His first reason is that trillions of dollars’ worth of digital gold is secured on-chain, referring to the flagship cryptocurrency, Bitcoin (BTC).

All that is needed for Bitcoin to be valuable in any jurisdiction is an internet connection, irrespective of political factions, according to the crypto expert.

Recently, the GENIUS Act for stablecoins was passed into law, bringing a new era of regulatory clarity in the United States.

Sponsored by U.S. Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.), this bill requires that stablecoin issuers register with regulators and hold secure reserves.

Srinivasan strongly believes that this full legislation takes every other asset onchain.

Pointing to the video attached to his referenced post, he emphasized how the door to a house can be secured with cryptocurrency.

Advocating Smart Contract Technology

The former Coinbase CTO opines that the door of a car, a plane, a train, a boat, or any building can also be unlocked using the same smart contract technology. In other words, they can be secured onchain.

The digital signature, which unlocks these doors, can do much more. It could be used to run the engine of a car, further extending its functionality to cranes, drones, humanoid robots, sidewalk robots, and self-driving cars.

Ultimately, it can secure just about anything that is controlled electronically, which, in Srinivasan’s opinion, is almost everything.

Moreover, the former Coinbase executive highlighted a few exceptions that cannot be secured onchain.

This includes the food on your plate and the shirt on your back, all of which he described as a negligible fraction (approximately 1%) of the world’s value.

He is convinced that the other 99% are all going onchain, even financial assets.

Coinbase’s Focus on Better Security

The destination for these properties and assets is the blockchain due to its perceived security as the most secure backend.

Unlike the Pentagon and some Web2 services, which are prone to hacks and breaches, scaled public blockchains are believed to be more secure.

Conclusively, Srinivasan stated that “the blockchain is the basis by which we can build a code-based order on the Internet, a new kind of global economic union that allows anyone with an internet connection to access world-class monetary policy and contractual equality.”

GENIUS Act Triggers a Shift in Ethereum’s Perpetual Open Interest

Meanwhile, the signing of the GENIUS Act into law ushered a notable increase in the crypto sector.

Less than a week ago, Ethereum’s perpetual open interest soared as high as $28 Billion in one week, just after the approval of the GENIUS Act. It was just under $18 Billion before this rally.

Clearly, institutional investors have begun to shift their focus to Ethereum and stablecoin-focused Layer-1 blockchains.

Even ETF inflows and options trading data reflect the growing confidence in Ethereum.