The crypto ecosystem is described as a new financial system, a more democratic, more inclusive financial sector, and the future of the internet. As is evident by the inherent correlation between digital assets and the Nasdaq 100 most people don’t see blockchain as anything but an extension of the existing tech economy. Although blockchain advocates are enthusiastic about its potential and virtues, they have not been able to present a complete case for it to the general public.
Many crypto natives envision “the decoupling,” where digital assets will become financially independent of traditional tech equities. Industry independence will not be realized if there is no clear plan for distinguishing decentralized crypto technology. We who believe in blockchain technology’s long-term potential need to reconsider how we present blockchain technology to the wider society.
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What is “the Decoupling”?
The Bitcoin (BTC), whitepaper, published 14 years ago, demonstrated the desire to create a world where decentralized payments are possible. This goal has been partly achieved with developments such as El Salvador’s adoption of Bitcoin.
The cryptocurrency ecosystem isn’t replacing traditional finance. It has become a part of traditional finance. CNBC will show you the latest crypto-related institution. You will also see minute-by-minute graphs showing crypto price movements alongside traditional equity market models. It is unlikely that you will hear any industry leader or blockchain commentator speak about improving financial transactions, eliminating third party banking institutions, or any other aspect of the original crypto ethos.
This broad shift in purpose and perception has resulted in crypto growing and declining with traditional economic behavior, despite its being established to reduce dependence on traditional finance. Evidently, the Fed’s meeting memos, and Amazon’s quarterly earnings call have a greater influence on crypto ecosystems than anything in Satoshi Nakamoto’s whitepaper.
What is cryptocurrency’s purpose if it cannot be financially independent of the legacy financial and technological industry it seeks? It is not an option for the industry to be a luxury, but it is necessary for its survival.
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How does crypto decouple?
Two things must be acknowledged by the wider community. The first is that you can’t wish your way to a new financial reality. It won’t happen because we want it. It’s also said that you can’t do the same thing over and again expecting different results. Crypto’s current status was built on the strength of the narratives; a continuation of the same strategy will only perpetuate stagnation.
Three broad steps are required to fully decouple.
The crypto-community makes blockchain technology and narratives more accessible. We focus on real-world use cases; we emphasize the contrast between crypto and its alternatives.
Blockchain technology and narratives are aproachable
Jargon is the antithesis to accessibility. Although technical language is a common feature in computer science circles, it may not be the most popular. However, terms such as zero-knowledge proofs and layer 2 interoperability protocols might be more familiar to the general population. To decouple blockchain from tech, it is necessary that the user experience with blockchain be similar to Meta.
You can say what you like about Facebook and its sister products. But you can’t deny that they are indispensable for teenagers and addictive to grandparents. For crypto to continue to grow, it must follow this approach built on accessibility. Facebook users are not required to understand the complex algorithms. They simply type and scroll. This is not the way to interact with crypto. Cryptography cannot be confined to computer geeks. It must appeal to all members of society.
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Cases with real-world effects
Blockchain is not a one-size fits all technology. The crypto community must decide whether blockchain can be a master of any trade or a jack in all trades. Although many people believe that blockchain can transform entire industries, there is little evidence that it can solve all our problems. It is better to concentrate on creating real-world, transformational change in just a few sectors than trying to implement a variety of theoretical applications.
The most promising use cases are those that Nakamoto describes in his whitepaper. They include a money system free from government interference, cross-border financial systems accessible to the 99%, as well as a new ownership mechanism that allows people to own financial infrastructure. Rest is just noise.
Combining the blockchain and its alternatives
My reason for getting into crypto is simple. It has the unrivaled ability to improve certain, but critical aspects of our financial systems. Nakamoto’s whitepaper, which was created in the midst a financial crisis unprecedented, painted a picture that depicted an economically empowered society. Nakamoto imagined a world in which people could be their bankers, whereas greedy big banks created financial chaos. Cross-border transfers can be made frictionless by using novel blockchain technology. Financial privacy could help protect the savings of vulnerable individuals from large corporations and autocratic governments. Crypto’s limited supply could protect against inflationary policies that can be economically damaging.
These core principles are essential to the development of blockchain technology and will be vital to its future success. These principles are already being applied. Bitcoin institutionalization in El Salvador allows migrants to send and receive money without paying transfer fees. We have seen humanitarian aid flowing into Ukraine via blockchain more quickly than official state aid. Although the history of crypto is not perfect, these use cases continue to remind us how crypto can increase the economic power for the historically poor.
Blockchain is still very young and it was not built overnight. It still has plenty of time to reach its full potential. Inability to promote its core values will result in continued “coupling” with the status quo. Crypto’s founding ethos won’t be preserved if it isn’t decoupled from tech volatility, geopolitics and the endlessly lukewarm comments of CNBC’s talking heads.
We must double down on the things that made crypto revolutionary to save it from this fate.
This article is not intended to provide investment advice. Every trade and investment involves risk. Readers should do their research before making any decision.
These views, thoughts, and opinions are solely the author’s and do not necessarily reflect the views or opinions of Cointelegraph.
Dennis Jarvis, a highly skilled executive, is passionate about creating great teams and promoting economic freedom via cryptocurrency adoption. Jarvis brings years of experience from previous global management positions at Apple, Rakuten, and blockchain startup Orb. Dennis joined Bitcoin.com as Chief Product Officer in 2018. He was promoted to CEO at Bitcoin.com by Orb in 2020.