Opinion of: Dr. K, co -founder of Quai Network
While Bitcoin should enable people to ward off from state-related monetary systems, the blockchain industry has lost its way since then. Today we see the specter of the federal government over -control along with blockchain solutions that prioritize the scalability and performance before decentralization.
The rise of networks comparable to Ethereum and Solana was definitely fascinating, but these blockchains include basic values in exchange for the introduction of user -friendliness and institutions. In order to realize the mission that Satoshi began, Bitcoin's worse money -ethos must return, which is credible neutral, unchangeable money that can’t be manipulated.
Unexpection is king
With a set supply of 21 million coins and regular half -time events, Bitcoin radiates the monetary certainty. No central authority or discovery can change Bitcoin's offer. This positions Bitcoin as an incredibly predictable value memory against the background of the cash pressure and the rampant inflation and distinguishes it from other types of the currency. In addition, the principles of Bitcoin are extremely difficult to vary, which builds up long -term trust within the network.
Flexibility and performance, but at what costs?
Key Layer -1 (L1) plagues comparable to Ethereum and Solana offer unsurpassed flexibility and performance, but with an alarming compromise. Ethereums of governance-guided updates that influence the gas fees and hire rewards doesn’t at all times like those with ETH stands. In addition, Solana prioritizes speed and performance, especially what makes it vulnerable to increased centralization levels. As a results of compromises, L1 networks comparable to Ethereum and Solana are strongly weakened in view of censorship and manipulation, be it by governments, supervisory authorities or powerful company interests.
By March 2024, Coinbase will check 3.84 million ETH at 120,000 validators, which corresponds to 11.42% of the whole ether, and is the biggest solo ether operator. This concentration creates centralization problems, since a handful of huge players comparable to Coinbase could threaten the decentralization of Ethereum and trigger regulatory risks. In addition, it takes control of the person and puts it back into the hands of a giant, centralized company – the precise opposite of the unique vision for cryptocurrency.
The role of the chance capital in crypto
The crypto industry began as a riot against Big Tech and the Gatekeeping of Silicon Valley, where only accredited investors support startups and profit from the winnings on the early stage. Crypto turned this paradigm the wrong way up. For the primary time, strange people, no VCS or insiders, could participate within the creation of latest technologies from the primary day. But now that the industry had a while to mature, Venture Capital has set itself up again and spent crypto in a way that appeals precisely the systems that attempted to disturb it.
Youngest: Metaplanets Bitcoin 'Premium' costs 600,000 US dollars per BTC
While enterprise capital innovation hurts, it also centralizes control through token distributions, board seats and control over product roadmaps. Solana is one in every of the leading blockchains which have received many investments from firms comparable to A16Z and Polychain Capital. This investment promoted quick growth, but additionally led to a centralization of tokens and decision -making powers for a handful of investors.
The best known crypto projects comparable to Ethereum and Solana – whether cynical for the old system or not – are ultimately inbuilt such a way that they serve institutions of their current state. Foundation teams block large pre -mines, give the early investors positively inclined terms and structure incentives for any exits and never for long -term decentralization. These behaviors usher in many similar performance dynamics that Bitcoin desired to remove.
Decentralization is just not optional
Decentralization is the essence of resistance from censorship and individual economic freedom. Bitcoins resistance against change protects it to be kidnapped by strong interests. Networks that consider decentralization as a compromise risk falls under the control of a brand new gatekeeper class. In order to preserve the promise of crypto, decentralization must remain the best priority.
The strength of Bitcoin lies in its neutrality and unchangeable, not in its programming or speed.
The Crypto ecosystem must return to those values as a way to avoid the errors of the normal economic system. Instead of trends or institutional approval, the industry must set the event of instruments for absolute financial independence. Return to Bitcoins original vision is the one method to separate the currency from the state and to regain control of cash through a trustless censor -resistant system.
Opinion of: Dr. K, co -founder of Quai Network.
This article serves general information purposes and mustn’t be thought to be legal or investment advice. The views, thoughts and opinions which can be expressed listed here are solely that of the creator and don’t necessarily reflect the views and opinions of cointelegraph or don’t necessarily represent them.
