A new financial system. a more democratic and inclusive financial sector; The future of the Internet – The crypto ecosystem has been described as all of these things. However, as evidenced by the inherent association of digital assets with the Nasdaq 100, most people fail to envision blockchain as anything other than an extension of the traditional tech economy. While blockchain proponents praise its virtues and capabilities, they have been unable to make a comprehensive argument about blockchain for ordinary people.
Many cryptocurrency holders anticipate a “decoupling,” as digital assets become financially independent from traditional tech stocks. But without a clear business plan for how to distinguish between decentralized crypto technology, industry independence will not be achieved. Those of us who believe in the long-term promise of blockchain technology need to completely rethink how we bring blockchain to the wider community.
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What is “chapter”?
In essence, the Bitcoin (BTC) whitepaper – published 14 years ago – demonstrated the ambition to build a world of decentralized, unlicensed payments. So far, partial progress on this goal has been made with developments such as the adoption of the national bitcoin currency in El Salvador.
However, the cryptocurrency ecosystem has not replaced traditional finance. In fact, I got rooted in it. Turn on CNBC and you’ll hear about the latest old institution to enter the crypto space, and you’ll see minute-by-minute charts of cryptocurrency price action along with traditional stock market models. You likely won’t hear any commentator or industry leader talking about improving financial transactions, eliminating third-party banking institutions, or any other specific element of native crypto ethics.
The result of this broad change in purpose and perception is that cryptocurrency – although created to reduce dependence on traditional finance – grows and declines with the movements and behaviors of the traditional economy. It is clear that the Fed meeting notes and Amazon’s quarterly earnings call are, at the moment, having a much greater impact on the crypto ecosystem than anything mentioned in Satoshi Nakamoto’s white paper.
If cryptocurrency is not financially independent of the legacy financial industry and technology that seeks to replace it, then what is the purpose of cryptocurrency? Segregation is not an industrial luxury – it is a necessary step for the survival of the industry.
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How does the encryption separate?
The broader community must acknowledge two things. First, you cannot wish your way into a new financial reality; Separation won’t happen just because we want it. Second, insanity is said to do the same thing over and over again while expecting different results. The narratives that built cryptocurrency into its current state have reached the limits of their influence; Continuing to stick to the same strategy will only perpetuate the recession.
For the complete separation, I suggest three general steps:
We, in the crypto community, are making blockchain technology and combo more accessible;
We focus on use cases with tangible, real-world impacts; And the
We emphasize the clear juxtaposition of cryptocurrencies and their alternatives.
User-friendly blockchain technology and narratives
Linguistic terms are the antithesis of accessibility. A technically complex language may be a mainstay in computer science circles, but for the majority of the population, terms like zero-knowledge evidence and Layer 2 interoperability protocol may be Latin as well. Paradoxically, for blockchain to decouple from technology, the experience of using it must be more like that of Meta.
Say what you will about Facebook and its sister products, but you can’t deny that they’ve become indispensable for teens and addictive for grandparents — for cryptocurrency to sustain long-term growth, it must emulate this model built around accessibility. No one interacting with Facebook is forced to understand the intricacies of its underlying algorithms. They just write and transmit. This should be the level of intuition required to interact with cryptocurrencies. Cryptocurrency cannot belong exclusively to computer geeks; It must make its case across the community.
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Use cases with tangible, real-world impacts
The cryptocurrency community needs to determine whether the blockchain is the socket for all trades, or the master of some. While many blockchains are in the playing field as a global technology capable of transforming entire industries, there is little evidence that blockchain alone is a silver bullet for all of our modern-day problems. At least in the short term, it is better to focus on bringing about transformative change in the real world in a few key sectors rather than pursuing many theoretical, but unrealized applications.
Use cases for maximum potential