Mapping the next phase of the crypto journey

A new financial system; a more democratized, even more inclusive financial sector; the future of the internet – the crypto ecosystem ha...


A new financial system; a more democratized, even more 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 correlation of digital assets with the Nasdaq 100, most people fail to conceptualize blockchain as anything other than an extension of the traditional tech economy. While blockchain proponents praise its virtues and potential, they have been unable to present a full case for blockchain to ordinary people.

Many crypto natives anticipate “decoupling,” in which digital assets become financially independent from traditional tech stocks. But without a clear action plan on how to differentiate 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 present blockchain to society at large.

Related: A New Intro to Bitcoin: The 9 Minute Read That Could Change Your Life

What is “decoupling”?

Bitcoin (BTC) white paper – released 14 years ago – demonstrated, at its core, the ambition to build a world of permissionless decentralized payments. To date, this goal has been partially advanced with developments such as National Bitcoin Adoption in El Salvador.

However, the cryptocurrency ecosystem has not supplanted traditional finance. In fact, he anchored himself there. Turn on CNBC and you’ll hear about the latest legacy institution entering the crypto space, and you’ll see minute-by-minute charts of crypto price action alongside traditional stock market patterns. You probably won’t hear any blockchain commentators or industry leaders talk about improving financial transactions, eliminating third-party banking institutions, or any other defining element of the original crypto ethos.

The result of this broad shift in focus and perception is that crypto – despite being established to reduce reliance on traditional finance – rises and falls with the movements and behaviors of the economy. traditional. Clearly, Fed meeting notes and Amazon quarterly earnings calls have a far greater influence on the crypto ecosystem right now than anything presented in the whitepaper. by Satoshi Nakamoto.

If cryptocurrency cannot be financially independent of the legacy financial and technical industry it seeks to replace, what is the purpose of cryptocurrency? Decoupling is not a luxury for the industry, it is a necessary step for the survival of the industry.

Related: The significant shift from Bitcoin maximalism to Bitcoin realism

How does crypto decouple?

The wider community needs to recognize two things. First, you can’t make your way to a new financial reality; decoupling will not happen just because we want it to. Second, insanity is said to be doing the same thing over and over while expecting different results. The narratives that built cryptography to its current status have reached the limits of their influence; continued adherence to the same strategy will only perpetuate stagnation.

To decouple completely, I propose three main steps:

  • We in the crypto community are making blockchain technology and stories more accessible;
  • We focus on use cases with tangible real-world effects; and
  • We highlight the clear juxtaposition between crypto and its alternatives.

Accessible blockchain technology and stories

Jargon is the antithesis of accessibility. Technically complex language may be a mainstay in computer circles but, for the majority of the population, terms like evidence without knowledgeand layer 2 interoperability protocol, might as well be Latin. Ironically, for blockchain to decouple from technology, the experience of using it needs to be more like Meta.

Say what you will about Facebook and its sister products, but you can’t deny that they’ve become both indispensable for teenagers and addictive for grandparents – so crypto can sustain long-term growth. , it must imitate this model built around accessibility. No one interfacing with Facebook is required to understand the intricacies of its core algorithms. They type and scroll. This must be the level of intuition required to interact with crypto. Crypto can’t belong exclusively to computer nerds; she must assert her point of view in society.

Related: In Defense of Crypto: Why Digital Currencies Deserve a Better Reputation

Use cases with tangible real-world effects

The crypto community must decide whether the blockchain is a jack-of-all-trades or a master of some. While many tout blockchain as a universal technology capable of transforming entire industries, there is little evidence that blockchain alone is a silver bullet to all of our modern woes. At least in the short term, it is better to focus on creating transformational change in the real world in a few key areas than to pursue a multitude of theoretical, but unrealized applications.

The use cases with the maximum potential are those at the center of Nakamoto’s white paper – the most fundamental for crypto natives: a monetary system free from government interference, a cross-border financial system accessible to 99% and a new ownership mechanism capable of giving people ownership of the financial infrastructure. The rest is noise.

Juxtaposing blockchain with its alternatives

The reason I got into crypto is simple: it has unparalleled potential to improve specific, yet critical, aspects of our financial system. The vision presented by Nakamoto’s white paper – forged in the midst of an unprecedented financial crisis – painted the picture of an economically self-sufficient society. As the greed of big banks created financial chaos, Nakamoto described a world where people were, in effect, their own bankers. By using the new blockchain technology, cross-border transfers could become completely seamless. Financial privacy could protect the savings of vulnerable people from big business and autocratic governments. Crypto’s inherently limited supply could protect against economically corrosive inflationary policies.

These fundamental principles are at the heart of the origins of blockchain and are necessary to ensure its future. We are already seeing these principles in action. In El Salvador, the institutionalization of Bitcoin allows migrant workers to send and receive funds without onerous transfer fees. In Ukraine, we have seen humanitarian donations flow in the country via blockchain faster than official state aid. While the history of crypto is far from perfect, these types of use cases continually remind us of how crypto can increase the economic power of historically disadvantaged people.

Rome was not built in a day; Blockchain is still a nascent industry just entering its teenage years. He has time to realize his potential. However, failure to effectively promote its fundamental merits will mean continued “coupling” with status quo industries. Without decoupling, the founding ethos of crypto will be drowned out by tech volatility, geopolitics, and endless lukewarm commentary from the talking heads of CNBC.

To save crypto from this fate, we need to redouble our efforts on what made it revolutionary in the first place.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Denis Jarvis is an accomplished executive who is passionate about building great teams and driving economic freedom through cryptocurrency adoption. He brings years of experience from his previous global management roles at Apple and Rakuten as well as blockchain startup Orb. Dennis joined Bitcoin.com in 2018 as Chief Product Officer and became CEO of Bitcoin.com in 2020.