74 - The History of Electronic Markets | Tarun Chitra
Bankless
Bankless
4.7 • 1.2K Ratings
🗓️ 19 July 2021
⏱️ 129 minutes
🧾️ Download transcript
Summary
Tarun Chitra is co-founder of Gauntlet, a financial modeling platform for crypto. Tarun is a thought leader in the space and is an expert in a variety of topics surrounding DeFi.
This week, we discuss the history of electronic markets, and how we’re in the third wave of this phenomenon.
Get this episode's exclusive debrief! 👀
https://shows.banklesshq.com/p/exclusive-debrief-the-history-of
------
🚀 SUBSCRIBE TO NEWSLETTER: https://newsletter.banklesshq.com/
🎙️ SUBSCRIBE TO PODCAST: http://podcast.banklesshq.com/
🎖 CLAIM YOUR BADGE: https://newsletter.banklesshq.com/p/-guide-2-using-the-bankless-badge
------
BANKLESS SPONSOR TOOLS:
⚖️ ARBITRUM | SCALING ETHEREUM
https://bankless.cc/Arbitrum
🍵 MATCHA | DECENTRALIZED EXCHANGE AGGREGATOR
https://bankless.cc/Matcha
🔐 LEDGER | SECURE YOUR ASSETS
https://bankless.cc/Ledger
🦄 UNISWAP | DECENTRALIZED FUNDING
https://bankless.cc/UniGrants
------
📣 SMARTCON | Register for Smart Contract Summit 2021!
https://bankless.cc/SmartCon
------
Bankless Podcast #74: The History of Electronic Markets
Guest: Tarun Chitra
We’re all familiar the image of traders in the pits of the New York Stock Exchange, holding up tickets and shouting out orders to one another. This is the backdrop for Electronic Markets 1.0, when ‘open outcry’ was the norm for the exchange of equities. When internet technology first emerged, it was brought to these markets, such that geographically distinct markets were fused by the instant communication of prices, bids, and offers.
New technologies come quickly to the markets, giving an advantage to those who adopt the fastest. Alongside traders and brokers are the technologists, the quants and computer scientists who leveraged their understanding of networks to revolutionize trading. This first wave of electronic markets lasted until the dawn of personal computers, home internet, and E-trade.
This second wave further revolutionized modern exchanges, distributing public access while consolidating liquidity. Synergistic with the dot-com boom, this explosion of retail investing once again turned exchanges on their heads. Look around now, and observe that we are in a third wave of new technologies applied to markets: Electronic Markets 3.0. Catalyzed first by mobile phones and now DeFi, the markets have once again been uprooted and fundamentally changed.
What does this all mean? Where do we go from here? How do we adjust for scaling complex markets? Well, listening to what Tarun Chitra has to say about it isn’t a bad place to start.
------
Topics Covered:
0:00 Intro
7:00 Tarun Chitra
10:40 A History Lesson on Markets
17:45 Patterns in Electronic Markets
20:55 Electronic Markets 1.0
29:09 Options and Removing Lawyers 1.0
38:08 Experimenting and Crashes 1.0
46:19 New Players & Regulation 1.0
52:19 Electronic Markets 2.0
1:00:08 ETFs and Consolidation 2.0
1:14:26 Before and After 2.0
1:23:00 Removing Lawyers 2.0
1:28:00 Electronic Markets 3.0
1:37:40 Experimenting and Crashes 3.0
1:46:07 Removing Lawyers 3.0
1:52:50 New Risks 3.0
2:00:35 Financial Crisis 3.0
2:09:10 Closing & Disclaimers
------
Resources:
Tarun on Twitter
https://twitter.com/tarunchitra?s=20
Gauntlet Network
https://gauntlet.network/
Inside Job: The Looting of America's Savings and Loans
https://www.amazon.com/Inside-Job-Americas-Forbidden-Bookshelf-ebook/dp/B013S42VF6
More Money Than God: Hedge Funds and the Making of a New Elite
https://www.amazon.com/More-Money-Than-God-Relations/dp/0143119419
When Genius Failed: The Rise and Fall of Long-Term Capital Management
https://www.amazon.com/When-Genius-Failed-Long-Term-Management/dp/0375758259
-----
Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.
Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here:
https://newsletter.banklesshq.com/p/bankless-disclosures
Transcript
Click on a timestamp to play from that location
| 0:00.0 | Welcome to Bankless, for weeks before the frontier internet money and internet finance. |
| 0:18.8 | This is how to get started, how to get better, and how to front run the opportunity. |
| 0:23.1 | I'm Ryan Sean Adams. |
| 0:24.1 | I'm here with David Hoffman, and we're here to help you become more bankless. |
| 0:29.4 | David, great episode today, Trune Chitra, on the podcast. |
| 0:34.0 | He is a polymath, he's got, he spans so many different ideas, such a big brain, but this |
| 0:40.6 | episode we really drew his attention to the history of the markets, in particular the history |
| 0:46.4 | of the electronic markets. |
| 0:48.6 | What did we cover today? |
| 0:49.6 | Yeah, really the concept or story being told here is that the internet, as we all know, |
| 0:54.2 | changed everything, and it especially changed how markets are structured. |
| 0:57.9 | So as soon as the internet started to invade the world of financial markets, an interesting |
| 1:02.3 | story is told. |
| 1:03.7 | And so Trune has delineated the growth in this story into three phases, phase one, two |
| 1:08.4 | and three of the growth of electronic markets, where we stopped yelling at each other inside |
| 1:13.3 | of the pits about what trades we wanted to make, and instead we just started typing our |
| 1:16.8 | trades into computers. |
| 1:19.0 | And that has gone from people order routing into various exchanges in the 80s and 90s, |
| 1:23.7 | into consolidation to brokerages like your Charles Schwab and your e-trades online in the |
| 1:28.6 | 90s and early 1000s, to where we are today, with DeFi markets and crypto exchanges. |
| 1:33.0 | And each one of these phases has similar story or similar themes throughout each one. |
| 1:37.6 | There's themes of what happens when a financial crisis happens, because we're talking about |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from Bankless, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of Bankless and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2026.