Previously Published Essays & Articles
Coindesk Archives
2018
Public Blockchains’ Lure Will Become Irresistible for Enterprises in 2018
Published Jan 21, 2018
The article argues that enterprises will ultimately be drawn to decentralized public blockchains because only they enable true interoperability, low-friction exchange of value, and resistance to monopolistic intermediaries. While most enterprise blockchains in 2017 functioned mainly as secure databases or notary systems, the author contends this is a dead end. The real promise lies in tokenization: representing products, services, and fiat currencies as digital tokens on the same blockchain, allowing seamless exchange and automation through smart contracts. Although scalability, privacy, and regulatory compliance were still immature, the piece predicts that advances in privacy technologies and governance would make public blockchains increasingly viable for enterprise use starting in 2018.
The Age of Endless Blockchain Forks Is Coming to an End
Published May 7, 2018
The article argues that frequent blockchain forks will decline as public blockchains become increasingly tied to real-world assets. When tokens represent off-chain assets such as real estate, commodities, or cash, only one “primary” blockchain can be legally and operationally recognized. Forked chains will lack valid links to those assets, reducing their usefulness and user adoption. As a result, public blockchains will need stronger governance mechanisms, evolve more slowly, and prioritize stability over rapid change, resembling mature financial infrastructure rather than experimental software.
Why Companies Need to Get on the Tokenization Train
Published Jul 3, 2018,
The article argues that enterprises should move beyond using blockchains as passive record-keeping tools and adopt tokenization. By representing assets, products, and services as digital tokens on public blockchains, companies can enable real economic activity, automate complex contracts with smart contracts, reduce operational friction, and unlock more efficient, integrated business networks.
Fiat Currencies Are About to Become Essential to Public Blockchains
Published Jul 18, 2018
The article argues that for public blockchains to support real economic activity, they must integrate fiat currencies. Most businesses earn, price, and manage risk in fiat, so forcing them to transact solely in cryptocurrencies introduces unnecessary foreign-exchange risk. While off-chain bank settlement is possible, it limits the potential of blockchain-based commerce. The preferred model is “full-cycle” on-chain contracts where asset tokens and fiat-denominated money tokens are exchanged on the same blockchain, enabling lower risk, automation, and new financial services—requiring large-scale tokenized fiat on public networks.
How to Make Public Blockchains Safe for Enterprise Use
Published Sep 6, 2018
Public blockchains can support enterprise use if two conditions are met: clear regulatory rules for tokens and smart contracts, and technical enforcement of those rules through programmable tokens. Compliance can be embedded without centralizing networks, preserving decentralization while enabling enterprises to meet KYC, AML, and asset control requirements.
Why Blockchains Struggle to Gain Traction in Enterprises
Published Nov 4, 2018
Enterprises adopt blockchains slowly because existing systems, while inefficient, work reliably and are risky to replace. Blockchain delivers the most value where ROI is clear or coordination across multiple parties is essential. Adoption will proceed incrementally, solving specific problems rather than replacing core systems wholesale.
2019
Falling Crypto Prices Aren’t Stopping Real Blockchain Progress
Published 3 January 2019
Despite the 2018 crypto market collapse and ICO failures, underlying blockchain technology made substantial progress. Public blockchains consolidated around Ethereum, exchanges matured operationally, and stablecoins grew. Meanwhile, private blockchains delivered tangible enterprise value, shifting focus from speculation to real-world use cases and ROI.
2020
Enterprises Need Third Parties for Oracles to Work
September 14, 2020
Enterprises cannot rely solely on decentralized oracle systems like Chainlink for financial services; they need independent third-party verification through attestation reports and SOC audits. While multiple data sources work for some cases, “you need the blockchain-equivalent of an audit” when only one party controls critical information. A properly decentralized system can minimize trust requirements while maintaining efficiency through competitive third-party providers.
How Small Business Can Achieve ‘Economies of Scale’ by 2030
September 24, 2020
By 2030, blockchain technology and smart contracts will enable small businesses to collaborate as efficiently as large enterprises, reducing traditional economies of scale advantages. This shift toward “re-decentralization” will allow startups to build global, customized product networks without massive IT infrastructure, fundamentally transforming competitive dynamics and potentially returning markets to greater diversity of smaller, specialized brands competing globally.
‘Great Artists Steal’ – What Enterprise Blockchain Can Learn From the Past
September 30, 2020
Enterprise blockchain developers shouldn’t reinvent existing standards but instead learn from decades of proven communication protocols like EDI and SWIFT that have successfully managed trillions in global commerce. By adopting these established frameworks rather than creating new ones from scratch, blockchain can accelerate enterprise adoption while solving current limitations around standardization and multi-party business logic execution.
From DeFi to DeOps: How Public Blockchains Could Supplement ERP Systems
October 26, 2020
Public blockchains could enable “DeOps” (Decentralized Operations) applications that supplement traditional ERP systems by allowing multiple enterprises to share standardized apps and business logic without intermediaries. Rather than suppliers integrating with each company’s custom systems, they could interact with standardized blockchain-based applications, potentially transforming supply chains and reducing costs across industries similar to how ERP systems revolutionized enterprise operations.
What the History of Airlines Tells Us About Blockchain Commerce
November 18, 2020
Paul Brody argues that blockchain’s ability to tokenize industrial capacity will parallel the airline industry’s experience after deregulation: once previously hidden idle assets become visible and bookable online, prices collapse toward marginal cost. He warns that industries with low utilization rates—offices, theaters, classrooms, medical equipment—face similar disruption as “every piece of capacity can be represented as a digital token on a blockchain.”
Public Blockchains Are Set to Reshape Global Commerce (2020 Was the Start)
December 21, 2020
EY’s blockchain leader Paul Brody argues that public blockchains like Bitcoin and Ethereum will fundamentally reshape global commerce by dramatically lowering transaction costs between companies. He contends that this shift will enable smaller enterprises to compete globally and lead to a decentralization of business structures, compared to the centralized consolidation driven by previous information technologies. Five major 2020 developments—digital assets, regulatory frameworks, dominant blockchain architectures, DeFi, and enterprise adoption—signal this transformation is already beginning.
Why CBDCs Are Really Game-Changing
March 4, 2021
CBDCs’ real value lies not in digitizing money—which is already mostly digital—but in enabling programmable currencies that can automatically execute complex financial agreements. While consumer payments may see limited benefit, business-to-business transactions could be transformed through smart contracts linking asset transfers to contractual performance, though central banks will likely introduce programmability gradually due to security concerns.
The Future of Everything Is Free
March 11, 2021
Blockchains will make numerous services and transactions effectively free by drastically reducing marginal costs, fundamentally transforming business and finance. The author argues that as computing power and connectivity become nearly costless, companies must continuously innovate or see their offerings become commoditized at zero price points. This shift mirrors historical precedents like GPS and telecommunications, where free or near-free services created massive economic value and new industries.
This Isn’t the Revolution I Signed Up For
March 15, 2021
Paul Brody, EY’s Global Blockchain Leader, argues that blockchain technology is being co-opted by radical groups promoting discredited economic theories and extremist ideologies. While acknowledging legitimate uses for blockchain in supply chain and regulatory compliance, Brody contends that “the problems they describe are not real problems, and the solutions they propose are even worse,” warning against allowing the technology to become a tool for misinformation and extremism rather than constructive innovation.
Forget GIFs, NFTs Are Essential Infrastructure
March 31, 2021
NFTs represent essential economic infrastructure for managing scarce digital and physical assets, extending far beyond their use in digital collectibles like GIFs. According to EY’s blockchain leader, “NFTs provide one of the best tools ever invented for making the most of scarce resources,” enabling applications across supply chains, asset digitization, and resource optimization. The technology allows representation of both commonality and uniqueness in single asset classes, facilitating credit markets and unlocking underutilized resources like equipment and services.
There’s More to Inflation Than the Money Supply
April 5, 2021
Paul Brody argues that increased money supply alone doesn’t automatically cause inflation, citing four key factors that could prevent it: the velocity of money (how fast it circulates), existing economic slack, the deflationary impact of online shopping, and the structural independence of central banks. While acknowledging some inflation risk exists, he suggests the U.S. economy has substantial capacity to absorb stimulus before price pressures emerge.
Predicting the Future Is Easy, Profiting Is Hard
April 12, 2021
While predicting blockchain technology’s future success may seem straightforward, profiting from that prediction is far more complex. Drawing parallels to the dot-com boom, EY’s blockchain leader Paul Brody argues that obvious investments like Bitcoin and Ethereum may not deliver outsized returns, as network efficiency improvements and competition could limit appreciation. Instead, he suggests a diversified, passive index approach may be more reliable than attempting to pick winning projects in an uncertain ecosystem.
Web 3.0 Is Coming for the Sharing Economy
April 19, 2021
EY’s blockchain leader Paul Brody argues that decentralized protocols can transform sharing economy services like ride-sharing and food delivery, similar to how DeFi has disrupted finance. However, real-world sharing businesses face steeper challenges than financial services due to complexity, operational demands, and the profitability struggles of current Web 2.0 platforms that lack margins to compete against.
Time Is Running Out to Win the Blockchain Race
April 26, 2021
EY’s blockchain leader Paul Brody argues that companies are running out of time to establish leadership positions in blockchain technology. He contends that “the window to create a leadership position seems to close around 10-12 years after a market is created,” and with blockchain already 7-12 years into development, the critical moment for strategic positioning is now, not in some distant future.
Don’t Fear the Coming Regulation Wave
May 5, 2021
Blockchain technology and decentralized systems can actually simplify regulatory compliance rather than undermine it, argues EY’s Global Blockchain leader. Drawing parallels to internet regulation, the author suggests implementing compliance at network “edges” through exchanges and banks, using decentralized identity verification similar to security certificates, and embedding rules directly into smart contracts. While risks like regulatory capture and overly complex rules exist, the permissionless nature of blockchain networks makes them resilient to heavy-handed restrictions.
DeFi’s Sticky Future
June 3, 2021
Paul Brody argues that decentralized finance (DeFi) represents blockchain’s pivotal “tipping point” moment, similar to cloud storage’s breakthrough in 2006. Through composable smart contracts and interoperable assets like stablecoins, DeFi enables innovative financial services that build upon each other—from yield farming to enterprise applications—creating increasingly integrated and difficult-to-abandon systems as businesses embed these workflows into their operations.
A Big Carbon Footprint Compared to What?
June 10, 2021
Paul Brody argues that blockchain’s carbon footprint should be evaluated against the actual alternatives being replaced, not just efficient credit card transactions. When blockchains eliminate human involvement in complex multi-party business processes—like purchase order verification—the carbon savings can be substantial, potentially offsetting the energy costs of the transactions themselves.
The Age of Autonomous Supply Chains
June 14, 2021
Author Paul Brody argues that companies can replace inefficient, top-down supply chain planning with decentralized blockchain-based systems orchestrated by smart contracts. These autonomous networks would allow individual locations to dynamically source inventory based on real-time demand signals rather than rigid central forecasts, similar to how ride-sharing platforms match supply with demand.
Choosing Who We Trust
July 26, 2021
While cryptocurrencies promise a trustless future, blockchain applications actually require new forms of trust through oracles, algorithms, and decentralized governance. Rather than eliminating trust entirely, public blockchains offer users meaningful choices about whom to trust—a key advantage over centralized systems that demand all-or-nothing relationships with a single operator.
Why Enterprises Should Build on Public Blockchains
August 9, 2021
Paul Brody argues that enterprises should build on public blockchains rather than private ones, as private networks lack compelling advantages over traditional centralized databases. He contends that while companies initially deploy permissioned sidechains as a risk-mitigation strategy, the long-term path to sustainable blockchain adoption requires migration to public networks like Ethereum to access broader ecosystems and services.
The CeFi-DeFi Battle Has Already Begun
August 31, 2021
Traditional finance companies and decentralized finance startups are competing for market dominance, with each side holding distinct advantages. While DeFi platforms like Uniswap boast “ruthless efficiency” and faster innovation cycles, legacy financial institutions possess regulatory expertise and broader customer data. According to EY’s blockchain leader, both sectors will increasingly resemble each other as they mature, though established market leaders historically prove difficult to dislodge once customers switch providers.
How DeFi Can Help Make Climate Change an Investable Asset
September 13, 2021
Paul Brody argues that blockchain technology and decentralized finance can help unlock trillions in capital needed for climate and social investments by enabling better tracking of carbon emissions, tokenizing renewable energy assets into risk-appropriate segments, and attracting risk-tolerant investors to emerging climate-focused opportunities. The infrastructure gap between legacy industries and green investments creates bottlenecks that smart contracts and on-chain verification can help overcome, though the ecosystem must first develop the expertise to properly structure these new financial instruments.
Sorry, Blockchains Aren’t Going to Fix the Internet’s Privacy Problem
October 6, 2021
Paul Brody argues that blockchain technology won’t solve internet privacy problems due to poor economics: individual data has minimal value in competitive markets flooded with information from multiple sources. While encryption and zero-knowledge proofs offer technical promise for anonymity in specialized contexts like decentralized finance, he contends “the ship has sailed” on achieving mainstream consumer privacy monetization.
We Are Already Living in a Post-Scarcity World
October 27, 2021
Paul Brody argues that digital goods and increasingly affordable physical products are creating a post-scarcity economy where “more and more of what we consume has an effectively infinite supply.” He contends that declining real interest rates over centuries suggest free or near-free money will become permanent, potentially justifying widespread monetary distribution without fueling inflation across all sectors.
Why Blockchain Benefits the Supply Chain
November 15, 2021
Blockchain technology can improve supply chains by enabling clear, accurate information flow between companies without giving any single participant competitive advantage. Traditional supply chain systems suffer from severe information gaps that amplify disruptions—like the “bullwhip effect”—where small shortages cascade into major crises, but blockchain’s ability to track assets end-to-end with compatible data could resolve these inefficiencies and ensure smooth goods delivery.
This Thanksgiving, Let’s Be Grateful for Technology
November 25, 2021
Paul Brody, EY’s global blockchain leader, argues that technology—particularly blockchain—offers transformative opportunities to restructure enterprises and redistribute economic power more equitably. He traces how technology has enabled social mobility across generations in his family and contends that “blockchains will allow us to knit all those systems together across companies,” enabling small business networks to operate with the efficiency of large corporations while preventing centralized intermediaries from capturing disproportionate benefits.
2022
Web 3.0 Is Too Complicated
January 3, 2022
Paul Brody argues that building truly decentralized Web 3.0 systems requires resisting the temptation to oversimplify through centralized APIs and prioritizing native blockchain interactions instead. He warns that convenient API-based solutions risk recreating the centralization problems of Web 2.0, and that chasing Web 2.0-like performance speeds may unnecessarily concentrate infrastructure in corporate data centers.
2022 Is the Year of Ethereum
January 5, 2022
EY’s global blockchain leader Paul Brody argues that 2022 will be defined by Ethereum’s dominance, predicting three major trends: the rise of DAOs as organizational structures, deeper integration between DeFi and traditional finance, and Ethereum’s shift to layer 2 solutions that will establish it as the foundational blockchain for a multi-chain future. Brody contends that “everything important in blockchain is happening on Ethereum” and that early leaders in this ecosystem are positioned to capture substantial growth over the coming decade.
How DAOs Will Transform the Customer Experience
January 10, 2022
Decentralized autonomous organizations (DAOs) can revolutionize customer relationships through “stakeholder alignment,” where customers become owners with financial stakes in the ecosystem. The article argues that DAOs enable transparent data monetization, open contributor models, and delegated voting systems—avoiding traditional corporate structures that prioritize shareholder returns over customer interests.
Metaverse Scarcity Isn’t Real
January 11, 2022
Paul Brody argues that artificial scarcity in virtual worlds lacks the genuine constraints of physical real estate, making NFT and virtual land valuations fundamentally different from tangible assets. He contends that “scarcity must solve an actual problem” rather than existing arbitrarily, and warns that unlimited digital supply will ultimately pressure prices downward despite temporary exclusivity appeal. Blockchain technology alone cannot create meaningful community value without addressing whether virtual membership systems outperform existing online solutions.
In the Metaverse, Gameplay Is What Matters
January 17, 2022
In this opinion piece, Paul Brody argues that gameplay—not just community or blockchain technology—is the critical differentiator for metaverse success. He contends that while immersive worlds like Second Life build durable communities, experiences like Minecraft and Fortnite reach tens of millions through compelling gameplay mechanics. Brody suggests that stakeholder-driven gaming models, combining blockchain incentives with strong gameplay, could transform gaming culture by rewarding contributors economically while potentially moderating toxic behavior.
For Enterprises, Privacy Is the Critical Blockchain Feature
January 26, 2022
Privacy is essential for enterprise blockchain adoption, as zero-knowledge proofs will enable secure transactions while keeping business data confidential. EY’s Nightfall solution demonstrates how privacy technology can reduce transaction costs and allow companies to share supply chain information without exposing competitive secrets like production rates or pricing.
CBDCs Are Going to Disappoint
February 11, 2022
Paul Brody argues that early CBDCs will disappoint stakeholders because they lack the features that make cryptocurrencies attractive—they won’t operate on public blockchains, lack programmability for smart contracts, and require traditional banking infrastructure. While CBDCs could potentially succeed in cross-border payments between nations, their limitations make them unlikely to compete effectively with stablecoins or existing payment systems.
We Voted on It and You’re Fired: Welcome to the New World of DAOs
March 17, 2022
This opinion piece argues that DAOs will transform organizational governance through radical transparency and enable stakeholders to vote on major decisions—including personnel matters. The author contends that extreme transparency creates accountability while decentralized protocols face fiercer competition, and that delegation features make governance more practical and scalable than traditional corporate structures.
The Future of Ethereum Sucks, and I Feel Fine
March 21, 2022
Author Paul Brody argues that while Ethereum will become increasingly important to the global economy, this growth comes at a cost: the platform will gradually drift away from its original decentralized ideals toward more centralized, restricted uses—similar to how the internet evolved from its open beginnings. He contends this tradeoff is acceptable because the benefits of widespread adoption outweigh the loss of those early principles.
Want to See the Future of Banks? Look at Telcos
April 11, 2022
Banks will likely experience disruption similar to what telecommunications companies faced after deregulation, according to this analysis. As DeFi and fintech services compete with traditional banking offerings, institutions will eventually consolidate and refocus on their core competencies—integrating on-chain and off-chain services where they hold actual advantages—rather than attempting to compete across all emerging financial sectors.
Tackling the Inflation Misinformation Machine
June 10, 2022
Paul Brody argues that the crypto community’s widespread belief in deflationary assets misunderstands basic economics. He contends that “a little inflation is better than a little deflation” because deflation discourages spending and economic activity, while moderate inflation allows central banks flexibility—and the recent pandemic-era inflation, though elevated, represents a transitory adjustment comparable to post-WWII price surges rather than policy failure.
Gaming Out DeFi’s Regulated Future
June 21, 2022
DeFi regulation is inevitable, but historical precedents from music streaming and ride-sharing suggest policymakers will accommodate rather than eliminate new technologies. New entrants may face lower regulatory hurdles than traditional financial incumbents, potentially allowing crypto startups to innovate faster while established institutions struggle with compliance complexity and legacy system constraints.
There’s No Future for DeFi Without Regulation
September 12, 2022
The authors argue that decentralized finance cannot succeed without regulatory oversight, drawing parallels to America’s unregulated banking system before the Federal Reserve’s creation in 1913. They identify four key failures in the current crypto ecosystem—blending regulated and unregulated finance, lack of user expertise, absence of quality benchmarks, and irrational market behavior—and contend that “without embracing regulatory compliance, government-backed insurance models and fiat currencies built atop professionally run central banks have no viable future” for DeFi.
Privacy-Enabled Crypto Applications Are Coming for Enterprise, but Not Overnight
September 21, 2022
Privacy-enabled cryptocurrency applications for enterprise use face significant obstacles beyond mere technological development, including lengthy sales cycles, data privacy management complexities, and substantial scaling challenges. While EY’s Nightfall zero-knowledge proof technology shows promise, implementing private business logic on public blockchains requires solving multiple interconnected problems—from privacy data leakage to transaction costs that remain prohibitively expensive for large-scale supply chain operations. These hurdles are ultimately solvable, but enterprise adoption of privacy-focused blockchain solutions will take considerably longer than consumer applications.
The Ethereum Killers Are All Zombies Now
October 19, 2022
Paul Brody argues that competing blockchains like Solana, Terra, and Avalanche have failed to dethrone Ethereum despite their ambitions. He contends that “being the best in the largest ecosystem is worth more than being second or third place across many different ecosystems,” citing network effects and developer concentration as decisive advantages that make Ethereum’s dominance nearly impossible to overcome.
Ethereum Needs Competition
November 23, 2022
Author Paul Brody argues that despite Ethereum’s technical excellence and democratic governance, the blockchain ecosystem requires meaningful competition to prevent complacency. Drawing parallels to historical telecommunications regulation, Brody suggests that competitive pressure—rather than decentralization alone—drives innovation and prevents market operators from eventually becoming predatory monopolists.
2023
Why Blockchains Are as Important as ERP for the Future of Companies
January 11, 2023
Blockchains will transform enterprise business ecosystems similarly to how ERP systems revolutionized individual companies, argues EY’s Paul Brody. Rather than focusing on cryptocurrency speculation, the real value lies in practical applications like supply chain tracking, shared business logic through smart contracts, and eventual stablecoin payments. Enterprise adoption will proceed cautiously and incrementally, prioritizing asset management before financial applications.
There Will Be No Lessons Learned From FTX
January 13, 2023
Paul Brody argues that the crypto industry will fail to learn meaningful lessons from FTX’s collapse due to confirmation bias, with each faction interpreting events through their preferred lens. He contends that real progress requires addressing three critical challenges: implementing proper financial regulation (not abandoning it), establishing clear regulatory frameworks globally, and maintaining institutional investment despite market downturns. Brody emphasizes that blockchain’s future lies beyond cryptocurrency speculation, particularly in privacy technology, Ethereum’s dominance, NFTs for digital ownership, and decentralized autonomous organizations.
Policymakers Should Embrace DAOs in the New Future of Abundance
February 10, 2023
Paul Brody argues that policymakers should support decentralized autonomous organizations (DAOs) as superior alternatives to traditional corporations in an era of capital abundance. Unlike corporations that accumulate capital, “DAOs...accumulate engagement and focus on returning benefits to all participants,” with co-operatives providing an existing legal framework to legitimize these structures and counter predatory digital monopolies.
Regulators Are Bringing the Multichain Era to a Close
March 2, 2023
Paul Brody argues that regulatory scrutiny and high operational costs are consolidating the cryptocurrency landscape around established chains. He contends that “the amount of work required to qualify a new asset or service for our audit tools on Ethereum is significantly lower than other chains,” making enterprises reluctant to adopt multiple blockchain ecosystems when liquidity, compliance burdens, and technical complexity favor Bitcoin and Ethereum dominance.
Decentralization Is the Point, and We’re Not Talking Enough About Why
April 17, 2023
Blockchains’ unique value lies in their ability to enable decentralization—something impossible in traditional centralized systems. As digital technology consolidates industries into monopolies that extract wealth, decentralized networks like Ethereum offer an alternative pathway to digitization that prevents the “deadweight losses” estimated at roughly $1 trillion annually in the U.S. economy.
Please Enjoy the Final Crypto Winter
April 26, 2023
Paul Brody of EY argues this will be “the final crypto winter” as regulatory clarity, enforcement actions against bad actors, and maturing blockchain businesses transform the industry into a legitimate sector. He draws parallels to the dot-com bust, noting that just as e-commerce eventually flourished after initial hype deflated, crypto and blockchain will stabilize once valuations become driven by actual revenue and profits rather than speculation.
When AI and Blockchain Merge, Expect the Mundane at First
June 8, 2023
Paul Brody, EY’s global blockchain leader, argues that while AI and blockchain technologies will eventually work powerfully together, the initial applications will be mundane and slow to scale in enterprise settings. He identifies four near-term opportunities where convergence could have significant impact: software development, data analytics, training data authentication, and user interface improvements for blockchain platforms.
FedNow Is a Reminder That Payments Aren’t Crypto’s Differentiator
August 22, 2023
Paul Brody argues that blockchain payments cannot compete with established financial infrastructure like the Federal Reserve’s FedNow system due to higher transaction costs and lack of advanced features. While traditional payment systems face challenges in cross-border remittances and unbanked populations, the obstacles stem from regulatory and infrastructure issues rather than technological limitations. Brody identifies two areas where blockchains offer genuine value: tokenizing non-fiat assets and enabling simultaneous payment and delivery within a single ecosystem.
Eventually, We Are All Ethereum
September 19, 2023
According to EY’s Global Blockchain Leader Paul Brody, history suggests that all blockchain Layer 2 networks will eventually consolidate under Ethereum as the dominant Layer 1 standard. Drawing parallels to how TCP/IP unified diverse computer networks, Brody argues that Ethereum’s network effects and interconnection value make it the inevitable winner, despite the short-term existence of specialized competing blockchains designed for specific use cases like manufacturing or finance.
Regulatory Clarity Won’t Bring an End to Crypto Risk
October 24, 2023
Regulatory clarity in crypto will reduce some risks—like exchange fraud and asset illegality—but cannot prevent poor investment decisions, according to EY’s blockchain leader Paul Brody. While comprehensive legislation enables legitimate digital asset issuance, investors still face substantial risks from thousands of competing cryptocurrencies and tokens that function like company shares, with historical data showing over 90% of new startups fail.
Ethereum Has Layer 0 Power. But It Could Still Blow It
October 30, 2023
Paul Brody argues that while Ethereum has achieved “Layer 0 power” as a foundational standard for blockchain infrastructure, it faces three critical risks that could undermine its dominance: excessive centralization from powerful staking systems, ideological rigidity that rejects necessary regulation, and technological stagnation that fails to adapt to evolving needs. Successfully navigating these challenges requires balancing decentralization with practical governance, embracing reasonable oversight, and maintaining continuous innovation to preserve Ethereum’s position as global infrastructure.
Under the Hood, 2023 Was a Highly Constructive Year for Crypto
December 18, 2023
According to E&Y’s Paul Brody, 2023 was a transformative year for crypto despite modest price increases, marked by prosecutions of bad actors like FTX’s Sam Bankman-Fried and critical infrastructure developments. The year’s most significant achievements—including “Ethereum’s triumph” through Layer 2 scaling and regulatory groundwork for 2024—occurred largely behind the scenes, requiring industry engagement to fully appreciate.
In 2024, Crypto Summer Is Coming, and This One Will Be Different
January 11, 2024
EY’s Paul Brody predicts that 2024 will bring a more sustainable “crypto summer” driven by Ethereum’s Layer 2 scalability solutions, regulatory progress through MiCA, and institutional capital access. He forecasts convergence between central bank digital currencies and regulated stablecoins, alongside continued progress in industrial blockchain applications that have been quietly advancing during the crypto winter.
Why Blockchain Payments Are Misunderstood
March 5, 2024
Blockchain payments are often misunderstood due to flawed comparisons with traditional systems. While decentralized networks may never match centralized payment efficiency, they offer significant advantages for business-to-business transactions through smart contracts that automate compliance checks, potentially reducing overall costs by 40% despite higher on-chain fees.
Blockchains Will Upend Economies of Scale
March 15, 2024
Paul Brody argues that blockchain tokenization will fundamentally reshape competitive dynamics by dramatically lowering the minimum economic scale needed to operate efficiently in various industries. Rather than requiring massive capital investments to compete, smaller firms will leverage standardized digital tokens and smart contracts on public blockchains like Ethereum to coordinate complex supply chains and access distributed infrastructure, potentially enabling “10 times more companies” to be viable competitors in the same market space.
There Can (Probably) Be Only One Bitcoin
March 22, 2024
Paul Brody, head of blockchain at EY, argues that Bitcoin will likely maintain dominance as “digital gold” due to network effects and scarcity, similar to how gold dominates precious metals markets. However, he contends that the larger growth opportunity lies in utility-focused cryptocurrencies and blockchains like Ethereum, which process real-world transactions and business applications rather than serving purely as store-of-value assets.
Crypto’s Transition: Bringing Capital Onshore
April 30, 2024
The cryptocurrency industry is transitioning from offshore-dominated exchanges toward regulated, onshore financial institutions. Paul Brody argues that as blockchain assets become increasingly regulated, institutional capital from pension funds and banks will shift the market’s center of gravity from jurisdictions like the Seychelles and British Virgin Islands to established onshore markets, fundamentally reshaping the competitive landscape of crypto exchanges.
The Dollar Won, but Might the U.S. Lose Control of the Dollar?
May 3, 2024
The U.S. dollar’s dominance in global finance—used in 90% of international payments—gives America significant geopolitical power through sanctions and regulatory reach. However, the emergence of blockchain-based synthetic stablecoins could undermine this control by enabling transactions outside U.S. jurisdiction, potentially diminishing American regulatory authority and sanctions effectiveness.
The Internet of Things Is Still Broken (But DePIN Can Fix it)
June 24, 2024
Paul Brody of EY argues that the Internet of Things faces a fundamental business model problem: manufacturers struggle to maintain profitable services for smart devices over their multi-decade lifespans, often discontinuing support and “bricking” products. He proposes that blockchain-enabled decentralized physical infrastructure (DePIN) could solve this by allowing devices with excess computing capacity to transact with each other autonomously, creating sustainable networks that don’t depend on continuous corporate investment.
Philanthropy’s Blockchain Uptake Is Slow, But Future Is Bright
July 17, 2024
While nonprofit adoption of blockchain technology remains slow, the sector shows promising growth potential. According to research on 281 charitable organizations, nearly 70% report enhanced fund tracking and about half cite reduced administrative costs, though challenges like high transaction fees and poor usability persist. The author argues that improving product simplicity and reliability—rather than rushing awareness campaigns—is essential to unlock broader philanthropic sector adoption.
Blockchains Against Corruption
August 6, 2024
Paul Brody argues that decentralized technology can help businesses mitigate three major political risks: currency instability, judicial corruption, and government malfeasance. He contends that “extreme transparency” through blockchain-based systems reduces opportunities for corrupt officials while enabling automated, fact-based dispute resolution in compromised jurisdictions.
Faster Computers and Better Algorithms Will Fully Decentralize Blockchains
August 20, 2024
Paul Brody argues that advances in computing power and mathematical innovations—particularly zero-knowledge proofs—will enable genuine blockchain decentralization. As computers become faster and algorithms more efficient, tasks currently requiring centralized cloud infrastructure can run on individual devices, potentially transforming blockchains into truly distributed networks with larger smart contracts and improved security.
The New Blockchain Trilemma Is Here, and It’s Not About Technology
October 18, 2024
The original blockchain trilemma presented a choice between decentralization, scalability, and security. According to EY’s Paul Brody, a new trilemma has emerged: companies must choose between having products, customers, and regulatory approval—with most able to achieve only two of three. This shift reflects how regulatory milestones like Bitcoin/Ethereum ETF approvals and Europe’s MiCA regulation have fundamentally changed the competitive landscape from a purely technical challenge to a business and compliance one.
Intense Competition — Not Technology — Will Fuel Blockchain’s Rise to Dominance
November 7, 2024
Paul Brody, EY’s Global Blockchain Leader, argues that “intense competition and innovation” in decentralized networks will drive blockchain adoption more than technological superiority alone. He contends that while blockchains may be technically less efficient than centralized systems, their open and permissionless nature creates competitive pressure that benefits users through lower costs and faster feature development, similar to how the internet dominated telecommunications despite being technically inferior for calls.
Why Corporates Will Default to Public Chains in the Future
December 4, 2024
Financial institutions have historically favored private blockchains, but EY’s Paul Brody argues this preference will reverse as public chains like Ethereum demonstrate superior liquidity, technological maturity, and regulatory acceptance. “The advantages that digital assets on private networks have had with regard to regulator comfort and compliance are eroding,” making corporations increasingly likely to adopt public blockchains for their digital asset offerings.
2024 Was the Year of Breaking Through
December 16, 2024
EY’s Paul Brody argues that 2024 marked a transformative year for blockchain technology, driven by consistent regulatory approval and institutional acceptance rather than market direction changes. Key developments include Bitcoin and Ethereum ETF approvals, the EU’s MICA framework, and a pro-crypto shift in U.S. politics that accelerated mainstream adoption. However, Brody cautions against speculative excess on platform fringes like pump.fun, warning the industry must maintain credibility as it enters an “accelerated” growth phase in 2025.
2025
Tokenized Assets Can Redefine Portfolio Management
February 27, 2025
Tokenizing real-world assets on blockchain creates daily pricing data that could transform portfolio management by expanding the universe of investable assets beyond traditional stocks and bonds. As tokenized assets accumulate track records, institutional investors may be compelled to recalibrate their strategies, potentially reshaping the allocation of hundreds of trillions in assets under management.
Go Fast, Get Rekt
April 1, 2025
As companies adopt blockchain technology at scale, speed and innovation must be balanced with rigorous risk management. Paul Brody of EY outlines three critical rules: establish controls to avoid past failures, strategically manage different risk types separately, and leverage external expertise rather than building everything internally to reduce complexity and mitigate catastrophic mistakes.
Bitcoin Is the Asset, Ethereum Is the Platform
May 19, 2025
Paul Brody, head of blockchain at EY, argues that Bitcoin and Ethereum serve fundamentally different purposes within their distinct ecosystems. Bitcoin functions as a scarcity-based store of value requiring aggressive community consensus to maintain dominance, while Ethereum operates as a platform for building applications. Brody contends that each blockchain’s “Layer 0”—its community—can only excel at one primary mission, making their different cultural approaches essential to their respective strategic success.
The Dark Times Are Here. Where Is Bitcoin?
June 2, 2025
Bitcoin was created to serve as a safeguard during financial crises, yet it’s underperforming despite current economic turmoil in the US. Author Paul Brody argues that bitcoin must address three critical challenges—improving self-custody usability, implementing quantum-resistant security, and decentralizing mining—before it can fulfill its intended role as a crisis-era alternative to traditional assets.
The Future of Money Is Streaming Now
June 24, 2025
Stablecoins enable “financial streaming” where companies can dramatically reduce working capital by moving money globally in real-time at near-zero cost, potentially freeing trillions for investment. Rather than maintaining large local cash reserves, firms could rebalance holdings every six hours, while individuals might receive daily wages and pay utilities instantly—transforming how money flows through the economy.
Ethereum Has Already Won: Paul Brody
July 21, 2025
Paul Brody, EY’s Blockchain Lead, argues that Ethereum has already secured its position as the dominant blockchain platform despite ongoing competition. Drawing parallels to technology platform history—where winners like Windows and TCP/IP achieve near-monopoly status—Brody contends that “Ethereum has already won” because it has passed critical thresholds of age and adoption that make displacement nearly impossible, even as other blockchains continue operating with diminished market share.
Tokenized Stocks Aren’t Working (Yet)
August 14, 2025
Tokenized stocks currently underperform traditional markets due to geographic restrictions, limited trading hours, and lack of DeFi integration, but Paul Brody argues these limitations will eventually be overcome. As regulatory frameworks mature and liquidity pools become interoperable, on-chain stock trading could offer compelling advantages like access to private companies and enhanced corporate governance through smart contracts. The technology mirrors early digital music—inferior initially but destined to transform markets as the infrastructure develops.
Your Company Probably Doesn’t Need Its Own L2
September 13, 2025
Paul Brody, EY’s Global Blockchain Leader, argues that most companies shouldn’t build their own Ethereum Layer 2 networks. He contends that only firms capable of aggregating significant transaction volume—primarily large financial services companies like Coinbase and Robinhood—benefit from this approach, while most businesses would find it more cost-effective to connect directly to existing Ethereum or shared Layer 2 solutions.
Will Interest Payments Make Stablecoins More Interesting?
October 18, 2025
EY’s Paul Brody argues that regulatory restrictions on stablecoin interest payments are easily circumvented through existing alternatives like DeFi protocols and automated yield solutions, making the prohibition ineffective. He suggests regulators should instead allow stablecoin providers to pay interest directly, similar to traditional banks, rather than repeating historical regulatory mistakes like the Glass-Steagall prohibition that took decades to overcome.
4 predictions for privacy in 2026
December 31, 2025
Privacy in blockchain technology is poised for significant advancement in 2026, with experts predicting that solutions will shift from theoretical to practical implementation. Key developments include “privacy will become more practical” through conditional privacy approaches, the emergence of private stablecoins for institutional and retail payments, industrialization of privacy technologies across multiple platforms, and broader adoption of “threat-resistant” privacy that balances user protection with law enforcement capabilities.