Mapping the next phase of the cryptocurrency journey

A new financial system; a more democratized, even more inclusive financial sector; The future of the Internet crypto ecosystem has been described as all of these things. However, as evidenced by digital assets’ inherent correlation with the Nasdaq 100, most people fail to conceptualize blockchain as anything other than an extension of the traditional technology economy. While blockchain supporters praise its virtues and potential, they have not been able to make a comprehensive case for blockchain for ordinary people.

Many crypto-natives expect the “disconnect”, where digital assets become financially independent of traditional technology stocks. But without a clear action plan for how to differentiate decentralized cryptotechnology, industry independence will be unrealized. Those of us who believe in the long-term promise of blockchain technology need to rethink how we can show blockchain to a wider society.

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What is “disconnection”?

The Bitcoin (BTC) white paper – published 14 years ago – demonstrated at its core the ambition to build a world of unauthorized, decentralized payments. To date, this goal has been partially advanced with developments such as El Salvador’s national Bitcoin adoption.

However, the cryptocurrency ecosystem has not replaced traditional finance. In fact, it has become entangled in it. Turn on CNBC and you will hear about the latest older institution entering the crypto area, and you will see minute-by-minute graphs of crypto price trades 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 institutions, or any other defining element of the original cryptoethos.

The result of this broad change in purpose and perception is that crypto – despite being established to reduce dependence on traditional finance – is growing and declining with the movements and behavior of the traditional economy. Obviously, the Fed’s meeting memos and Amazon’s quarterly earnings requests currently have a far greater impact on the crypto ecosystem than anything posted in Satoshi Nakamoto’s white paper.

If cryptocurrency cannot be financially independent of the older financial and technical industry it seeks to replace, what is the purpose of cryptocurrency? Disconnection is not an industrial luxury – it is a necessary step for the industry’s survival.

Related: The meaningful shift from Bitcoin maximalism to Bitcoin realism

How to disconnect crypto?

The wider community must recognize two things. First, you cannot wish for a new economic reality; the disconnection will not happen just because we want to. Secondly, it is said that madness is doing the same thing over and over again while expecting different results. The narratives that have built crypto to its current status reached the limits of their influence; Continued adherence to the same strategy will only perpetuate stagnation.

For complete disconnection, I suggest three broad steps:

• We, in the crypto society, make blockchain technology and stories more accessible;
• We focus on use cases with concrete effects in the real world; and
• We emphasize the clear juxtaposition between crypto and its alternatives.

Approximate blockchain technology and stories

Jargon is the antithesis of accessibility. Technically complex language can be a mainstay in computer science circles, but for the majority of the population, terms such as proof of zero knowledge and layer 2 interoperability protocol can just as easily be Latin. Ironically, for blockchain to be disconnected from technology, the experience of using it must be more like Meta.

Say what you will about Facebook and its sister products, but you can not deny that they have become both indispensable for teenagers and addictive for grandparents – for crypto to maintain long-term growth, it must emulate this model built around accessibility. No one who has an interface with Facebook is forced to understand the difficulties with the basic algorithms. They just write and scroll. This must be the level of intuition required to interact with crypto. Crypto cannot belong exclusively to computer nerds; it must make its case across society.

Related: In defense of crypto: Why digital currencies deserve a better reputation

Use cases with concrete effects from the real world

The crypto community must decide whether blockchain is a master in all industries, or a master in some. While many view blockchain as a universal technology capable of transforming entire industries, there has been little evidence that blockchain alone is a silver bullet for all our modern problems. At least in the short term, it is better to focus on creating transformation in the real world in a few key sectors instead of pursuing a series of theoretical, but unrealized, applications.

The use cases with the maximum potential are the ones at the heart of Nakamoto’s white paper – the ones that are most basic to crypto-natives: a monetary system that is immune to government interference, a cross-border financial system available for 99%, and a new ownership mechanism. able to give people ownership of financial infrastructure. The rest is noise.

Puts blockchain together with the options

The reason I started with crypto is simple: it has unmatched potential to improve specific, yet critical, aspects of our financial system. The vision laid out by Nakamoto’s white paper – designed in the midst of a unique financial crisis – painted a picture of an economically empowered society. While the greed of big banks created financial chaos, Nakamoto described a world where people would in reality be their own bankers. By using new blockchain technology, cross-border transmissions can be completely friction-free. Financial privacy can protect vulnerable people’s savings from large corporations and autocratic authorities. Crypto’s inherently limited offerings can protect against economically corrosive inflation policies.

These core principles are central to the origins of the blockchain and are necessary to secure the future. We already see these principles in action. In El Salvador, Bitcoin institutionalization enables migrant workers to send and receive funds without burdensome transfer fees. In Ukraine, we have seen humanitarian donations flow into the country via blockchain faster than official state aid. While the history of crypto has been far from perfect, these types of use cases continually remind us of how crypto can increase the economic power of the historically disadvantaged.

Rome was not built in a day; blockchain is still a new industry that is barely entering its teens. It has time to realize its potential. However, the inability to effectively promote its core values ​​will continue to “link” to status quo industries. Without disconnection, crypto’s basic ethos will be drowned out by technological volatility, geopolitics, and endless lukewarm comments from CNBC’s talking heads.

To save crypto from this fate, we must double down on what made it revolutionary in the first place.

This article does not contain investment advice or recommendations. All investment and trading movements involve 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.