The disconnection policy file: Mapping the next phase of the cryptographic journey

The disconnection policy file: Mapping the next phase of the cryptographic journey – Mail Bonus

ADVERTISEMENT
>

New financial system; the more democratic financial sector, which is even more inclusive; the future of the internet – the cryptocurrency ecosystem has been described as all these things. However, as evidenced by the inherent correlation of digital assets with the Nasdaq 100, most people fail to understand blockchain as anything other than an extension of a traditional tech economy. While blockchain advocates promise its virtues and potential, they have not been able to provide a comprehensive argument for blockchain for everyday people.

Many indigenous peoples anticipate the “disconnection” that digital assets will become financially independent of traditional technical stocks. But without a clear plan of action on how to differentiate distributed cryptographic technology, industry independence would be unrealistic. We who believe in long-term promises of blockchain technology need to completely reconsider how to deploy blockchain to a wider community.

Connected: New introduction to Bitcoin: 9 minutes of reading that could change your life

What is “disconnection”?

The Bitcoin (BTC) White Paper – published 14 years ago – basically showed the ambition to build a world of unlicensed, distributed payments. To date, this goal has been partially advanced with developments such as El Bitcoin’s domestic Bitcoin adoption.

However, the ecosystem of the cryptocurrency has not replaced traditional finance. In fact, it has taken root. Turn on CNBC and you will hear about the latest senior institution entering the cryptocurrency space and you will see graphs of cryptocurrencies minute by minute along with models of traditional stock markets. You probably won’t hear any blockchain commentator or industry leader talk about improving financial transactions, eliminating third-party banking, or any other defining element of the original cryptographic ethics.

The consequence of this far-reaching change in purpose and perception is that cryptocurrencies – despite being established to reduce the dependence on traditional finances – grow and shrink with the movements and behavior of a traditional economy. Clearly, the Central Bank’s meeting reports and Amazon’s quarterly earnings calls currently have a much greater impact on the cryptocurrency ecosystem than anything set out in Satoshi Nakamoto’s White Paper.

If cryptocurrency can not be financially independent of the legacy of the financial and technology industry that it seeks to replace, then what is the purpose of cryptocurrency? Disconnection is not a luxury in industry – it is a necessary step for the industry to survive.

Connected: The significant shift from Bitcoin maximalism to Bitcoin realism

How to disconnect crypto?

The wider community must recognize two things. First, you can not wish your way into a new financial reality; the disconnection will not be just because we want it to be. Second, it is said that insanity is doing the same thing over and over again and expecting different results. The narratives that have codified the current situation have reached the limits of their influence; continued adherence to the same policy will only perpetuate stagnation.

To completely disconnect, I suggest three broad steps:

  • We, in the cryptocurrency community, make blockchain technology and storytelling more accessible;
  • We focus on use cases with tangible real effects; and
  • We emphasize the clear composition of cryptocurrency and its options.

Accessible blockchain technology and storytelling

Jargon is the opposite of accessibility. Technically complex language can be a cornerstone of computer science circles, but for the majority of the population, concepts such as zero-knowledge proof and layer 2 synergistic protocols could just as well be Latin. Ironically, for blockchain to disconnect 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 not deny that they have become both essential for teenagers and addictive for grandparents – in order for cryptocurrencies to sustain growth in the long run, it must emulate this model that based on accessibility. No one connected to Facebook is forced to understand the intricacies of its basic mask. They just write and scroll. This needs to be the intuition needed to communicate with cryptography. Crypto can not only belong to computer nerds; it must be felt throughout society.

Connected: In defense of cryptocurrencies: Why digital currencies deserve a better reputation

Use cases with tangible real effects

The cryptocurrency community needs to decide if the blockchain is dominant or the master of some. While many interpret blockchain as a comprehensive technology capable of transforming entire industries, there has been little evidence that blockchain alone is a silver bullet for all of our modern problems. At least in the short term, it’s better to focus on creating real transformation in a few key sectors rather than pursuing a number of theoretical, yet unrealistic, applications.

The maximum-potential use cases are at the heart of Nakamoto’s White Paper – the basics for native cryptocurrencies: a money – immune system, a 99% cross – border financial system and a new ownership system. able to provide people with ownership of financial infrastructure. The rest is noise.

Putting a blockchain together with its choice

The reason I went into cryptocurrency is simple: it has unparalleled potential to improve certain, yet important, aspects of our financial system. The vision set out in Nakamoto’s White Paper – set in the midst of an unprecedented financial crisis – paints a picture of an economically strong society. While the greed of big banks created financial turmoil, Nakamoto described a world where people were, in fact, their own bankers. Using new blockchain technology, cross-border transfers could become completely frictionless. Financial privacy could protect the savings of vulnerable people from big business and dictatorships. By its nature, Crypto’s limited supply could protect against economically corrosive inflation policies.

These principles are central to the origins of the blockchain and are necessary to secure its future. We are already seeing these principles put into practice. In El Salvador, Bitcoin institutionalization allows migrant workers to send and receive money without burdensome transfer fees. In Ukraine, we have seen humanitarian contributions flow into the country through the blockchain faster than public aid. Although the history of cryptocurrencies is far from perfect, these types of use cases constantly remind us how cryptocurrencies can increase the economic power of those who are in a difficult situation in history.

Rome was not built in a day; blockchain is still a start-up industry barely entering its teens. It has time to realize its potential. However, the inability to effectively promote its core merits will mean a continued “connection” with unchanged industries. Without disconnecting, the founding ethic of crypto will be drowned out by technological fluctuations, geopolitics, and endless lukewarm comments from CNBC’s talking heads.

To save cryptography from this fate, we need to double what made it revolutionary in the first place.

This article does not include investment advice or advice. Every investment and trading business involves risk and readers should do their own research when making a decision.

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

Dennis Jarvis is a talented executive who is passionate about building a team of people and promoting economic freedom through the adoption of cryptocurrency. He brings many years of experience from his previous international management roles at Apple and Rakuten as well as the blockchain launch of Orb. Dennis joined Bitcoin.com in 2018 as Product Manager and became CEO of Bitcoin.com in 2020.