This tech is converging to solve the great political crises
[Gilder's Daily Prophecy]
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October 14, 2019
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The Next Generation of Cryptocurrencies
[George Gilder]Dear Daily Prophecy Reader,
Enter the COSM! Its breaking out into three dimensions — a cosmic cube.
[Speaking of COSM, [go here]( to register for the COSM Tech Summit.]
I’m not just talking about the presence in Seattle of the scintillating Jules Urbach of Otoy, with his 3D rendering technology for virtual reality on the internet and his RNDR token to distribute it to the world.
I’m talking crypto-cyber cubic computing. It’s optimized three ways for secure, stable and sound media, machines, and money.
The broken paradigm of internet security has created a crisis of media. It’s not just the news fakers and hate speakers and impeachment prattlers. With a billion breaches of personal data in 2018, on track for three billion in 2019, no one trusts the net any more than they trust the politicians.
This is the real source of the strange fear in the Trump Administration of Huawei routers, switches, and microwave transceivers in our 5G networks. No one believes the hacking can be stopped.Ă‚
People might as well be terrified of surveillance from their microwave ovens (also made in China).
But it doesn’t matter whether the equipment comes from Shenzhen (Huawei), San Diego (Qualcomm), Stockholm (Ericsson), or Helsinki (Nokia). It doesn’t seem to matter how much money we lavish on the back-broken paradigm of post-hack internet security. It doesn’t matter whether the security spending goes into the cloud, the edge, or the corporate data center — the chips mostly come from Hsinchu, Taiwan.Â
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Turning to Taiwan for 5G Tech
The driving force of global 5G technology is Taiwan Semiconductor Manufacturing Corporation (TSMC). Founded some 40 years ago by Morris Chang — formerly of Texas Instruments (TI) — it now is the world’s leading fabricator of the world’s densest microchips.Â
TSMC-made chips bear the gist of 5G capabilities for Huawei, Qualcomm (QCOM), Ericsson (ERIC), Nokia (NOK), NVIDIA (NVDA), AMD (AMD), Xilinx (XLNX) and just about anyone else you might mention.Ă‚
This year TSMC surged ahead of Intel (INTC) to fabricate chips at geometries of seven nanometers (seven billionths of a meter, the width of the “gates” that switch the transistors).Â
TSMC makes the seven-nanometer CPU in the Apple iPhone 11. It makes the chips for NVIDIA and AMD’s ambitious new graphics processors that fuel imaging and AI capabilities around the globe.
Now, TSMC has announced plans to move down the semiconductor “roadmap” to the five-nanometer and three-nanometer “nodes.”
Meanwhile, previous champion Intel (INTC) remains stalled at the 10-nanometer node achieved by its leading-edge wafer fab at Kiryat Gat in southern Israel. Intel’s Arizona fabs in Chandler still mostly fab at 14 nanometers and above. In the continuing migration of Silicon Valley into software, Intel’s legendary Santa Clara fab has been converted into a data center.
What does that mean for Xilinx-rival field-programmable gate array company Altera, bought by Intel in 2015 for some $17 billion? Smaller gate lengths mean denser chips, with more billions of transistors. With Xilinx chips moving down to the single-digit nanometers with TSMC and Altera stalled at higher geometries with Intel, Altera may lag Xilinx at the top of the line 5G chips.
Today’s Prophecy
How does all this relate to the 3D COSM? All this technology is converging to solve the great political crises of the world economy. Trade gaps are essentially meaningless. They merely signify the breakdown between foreign dollars spent on US goods and services and dollars spent on US assets such as stocks and bonds. We need the investments in our stock markets and treasuries just as much as we need the incremental purchases of soybeans.Ă‚
As machines link through 5G networks in the internet of things, the chief obstacle isn’t trade-gaps but security gaps.Â
Today, the security companies chiefly supply a post-hack vision; they tell you whether you have been breached. They don’t stop breaches. Hospital equipment, self-driving cars, 3D image rendering links, microwave 5G networks, and arguably those microwave ovens all need to be immune to manipulation.
That means that all of these sensitive networks must be anchored in an immutable time-stamped ground state. That is provided by the Cryptocosm: blockchain that indelibly documents the record of the network and evidence of any intrusions.
That covers the media and the machines. But the leading outbreak of hacking in the world is the scandal of money. The same blockchain technology that provides the solution for internet hacking also supports the emergence of cryptocurrencies that remedy the Central Bank hacking of money.
The most important competition in the world economy currently, is between the central banks — such as China — that are developing cryptocurrencies themselves and private entrepreneurs backing bitcoin and Ethereum and the next-generation cryptocurrencies.
All of them rely on blockchain innovations. But only the ones that break away from the idea that the dollar or some basket of other bonbons is a “stable coin” will make any long-term contribution to the COSMic challenge of providing a global money that can guide the world economy to new pinnacles of productivity and growth.
Regards,
[George Gilder]
George Gilder
Editor, Gilder's Daily Prophecy
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