Bloomberg Crypto – “Princeton University’s Blockchain Center, One Year On”

Aired: March 16, 2023
Host: Stacey Marie Ishmael (Bloomberg Crypto Editor)
Guest: Francesca Maglione (Bloomberg Reporter)
Overview:
This episode reviews the first year of Princeton’s Center for the Decentralization of Power Through Blockchain Technology, examining academia’s evolving role in blockchain research. Host Stacey Marie Ishmael and reporter Francesca Maglione discuss the center’s origins, its response to the ongoing “crypto winter,” how universities rein in hype to focus on broader technological, ethical, and societal impacts, and how shifting trends like AI now compete for student interest in tech-driven disciplines.

Main Theme and Purpose

A year after its ambitious launch, Princeton’s Blockchain Center serves as both a case study and a bellwether for how leading universities are grappling with blockchain’s promise and controversy. The discussion contrasts initial excitement with pragmatic academic engagement and considers fluctuating interest in blockchain versus the contemporary surge in artificial intelligence (AI).

Key Discussion Points

The Center’s Origins and Mission

• Background: Princeton launched the Center for the Decentralization of Power Through Blockchain Technology in March 2022, backed by a $20 million donation from alumni Mike Novogratz (Galaxy CEO) and Joe Lubin (Ethereum co-founder).
  • Stacey Marie Ishmael: “An ambitious name for an ambitious program.” (01:21)
• Mission: The center aims to pursue new software, explore real-world blockchain applications, and analyze ethical and societal impacts.
• Academic Value:
  • Francesca highlights the center’s intent to “provide as neutral as a voice as possible” following the tumultuous events involving FTX and the ongoing crypto winter (03:18).
  • Quote: Dean of Engineering: “It's essential for universities to play a major role in the technology development use cases and societal and ethical implications of blockchain. And to harness its powers for good.” (03:48)

Activities and Research Initiatives

• Events: Hosted a pivotal event in November 2022 with ~60 participants, including donors and CFTC regulators, to establish focused research questions around:
  • Blockchain applications
  • Technical innovation
  • Ethical/social implications (04:15)
• Class Offerings: Began with a single course; now offers three crypto-related classes, indicating academic expansion (06:10).
• Research & Partnerships: The center is in the process of hiring dedicated faculty and discussing partnerships with blockchain startups for hands-on learning. (06:10–06:49)

Academia’s Approach Amid Market Volatility

• Academic Detachment:
  • Mike Novogratz, donor, praises academia for its “longer-term view,” especially in turbulent times (05:36).
• Value in Volatility:
  • Francesca: The “hype or volatility creates a space for intellectuals…to break through what’s true, what’s not” (07:38).
  • Christian Cassellini (MIT, ex-Diem co-creator):

    "Students are very attuned to what's happening in society...It's not about the number of students, it's more about can we really train the ones that should know about this the most in the best possible way?...universities should be somewhat detached from what's happening in the market." (08:32)

Student Interest and Boom-Bust Cycles

• Changing Demand:
  • Initial explosion in course demand at Princeton—some classes filled in 90 seconds (12:28)—contrasted with lower current enthusiasm due to crypto’s recent negative press and waning hype.
  • Francesca Maglione: “The energy is not the same, has definitely been tainted…He [JP] really wants…students that care about the technology, that think what can this bring to a developing country…” (12:30–13:32)
• AI Overtakes Crypto’s Allure:
  • Francesca observes rising interest in AI courses, much like early crypto enthusiasm, especially after ChatGPT’s emergence (13:55).
  • Stacey: “One of the areas that's been, shall we say, competing with interest for crypto is artificial intelligence.” (13:32)

The Societal and Ethical Mandate

• Beyond Hype:
  • Princeton’s focus is shifting away from speculation towards examining utility in areas like economic development, governance, and social systems (13:32).
• Ethics Parallels in Crypto and AI:
  • Both disciplines are now magnets for ethical debates and societal concerns—universities are uniquely positioned to lead these conversations (14:43).

Notable Quotes & Memorable Moments

• On the effect of crypto’s downturn on academia:

  Francesca: “If anything, kind of the FTX drama and everything that came with that and the crypto winter kind of reinforced the need for this kind of center...” (03:18)

• On keeping perspective amidst hype:

  Stacey Marie Ishmael: “Academia is not neutral. We acknowledge that…” (03:48)

• On student demand post-crash:

  Francesca: “The energy is not the same, has definitely been tainted…He really wants…students that care about the technology…” (12:30–13:32)

• On cycles of tech interest:

  Christian Cassellini (MIT): “...universities should be somewhat detached from what's happening in the market.” (08:32)

Timestamps for Key Segments

• 01:21 – Introduction to the Center and its founding vision
• 03:18 – FTX, crypto winter, and the renewed case for academic study
• 04:15 – Day-to-day activities: events, research focus, student/faculty involvement
• 06:10 – Course expansion, outreach, and industry partnerships
• 07:38 – Academic versus speculative approaches to blockchain
• 08:32 – Christian Cassellini on academic detachment and student motivations
• 12:28 – Student demand in boom versus bust cycles
• 13:55 – Rising interest in AI and shifting academic priorities

Conclusion

Princeton’s blockchain center, now a year old, epitomizes academia’s nuanced approach to frontier technologies—moving beyond flash to substance, harnessing volatility to generate foundational research, and shaping the next generation of critical thinkers. Universities remain at the intersection of technology and society, helping bridge knowledge gaps amid the ever-shifting excitement of crypto, AI, and whatever comes next.

For more detailed insights, refer to Francesca Maglione’s reporting on Bloomberg.com.