Recode Decode: Sarah Tavel, partner, Benchmark

Blockchain Potential

Sarah Tavel, a partner at Benchmark, explores the potential of blockchain technology, emphasizing its unique use cases that require a decentralized approach. She highlights the challenges of scaling blockchain applications, noting that executing contracts on platforms like Ethereum is significantly more costly compared to centralized systems like AWS 1. Despite these hurdles, Sarah sees the current phase as an infrastructure build-out, akin to the early days of the internet, where creativity and innovation are crucial 1.

It's not the Internet yet. I mean, I kind of. Yeah. So I think it's like we are in the infrastructure build out phase of this ecosystem.

--- Sarah Tavel

Her interest in cryptocurrency was sparked by the philosophical implications of smart contracts, which she believes could revolutionize various sectors 2.

   

ICO Challenges

The conversation shifts to the challenges and skepticism surrounding Initial Coin Offerings (ICOs), which Sarah Tavel critiques for their speculative nature and structural flaws. She compares the ICO craze to the internet bubble, suggesting that many projects are likely to collapse due to their unsustainable models 3. Sarah argues that the ICO structure lacks the flexibility needed for iterative development, often leaving projects unable to pivot or adapt 3.

I don't fundamentally believe in the structure of the ICO. I don't believe in a couple engineers writing a white paper trying to anticipate all the, you know, the inflation rate that they want to have all the incentives.

--- Sarah Tavel

She envisions a future where a hybrid model of centralized and decentralized systems could emerge, maintaining the need for venture capital in the evolving landscape 4.