Opinion: Dr. K, co-founder of Quai Network
Bitcoin was meant to allow people to opt out of the state-centric money system, but the blockchain industry has since lost its way. Today we pose threats with government threats and blockchain solutions that prioritize scalability and performance over decentralization.
The rise of networks such as Ethereum and Solana is certainly attractive, but these blockchains form core values ​​in exchange for ease of use and adoption of institutions. To achieve the mission that Satoshi has begun, we need to return to the original money spirit of Bitcoin.
Invariance is the king
With a fixed supply of 21 million coins and regular harving events, Bitcoin exudes financial certainty. Central authorities and discoveries cannot change the supply of Bitcoin. This positions Bitcoin as a highly predictable and valuable reservoir against the backdrop of money printing and ramping inflation, setting it apart from other forms of currency. Furthermore, Bitcoin rules are extremely difficult to change, building long-term trust in the network.
Flexibility and performance, what is the cost?
Key Layer 1 (L1) players like Ethereum and Solana offer unparalleled flexibility and performance, but with amazing trade-offs. Ethereum’s governance-driven updates affecting gasoline fees and staking rewards are not always pleased with ETH Holdings. Furthermore, Solana prioritizes speed and performance above all else, making her vulnerable to increased levels of centralization. As a result of the trade-offs, L1 networks such as Ethereum and Solana have been severely weakened in the face of censorship and manipulation from the interests of governments, regulators, or strong companies.
As of March 2024, Coinbase controls 3.84 million Eth with 120,000 validators, accounting for 11.42% of total stained ether, making it the largest solo ethereum node operator. This concentration raises the issue of centralization as a small number of major players like Coinbase can threaten Ethereum’s decentralization and pose a risk of regulation. Furthermore, it takes control from individuals and brings it back to the hands of large, centralized businesses. This is the exact opposite of the original vision of cryptocurrency.
The role of venture capital in crypto
The crypto industry began as a rebellion against big technology and gatekeeping in Silicon Valley. There, only certified investors could back up the startup and benefit from early stage profits. The code has turned that paradigm into your mind. Rather than VCs or insiders, ordinary people were able to participate in creating new technology from day one for the first time. But now that the industry has time to mature, venture capital is reasserting itself and distributing it in a way that appeals to the very systems that are trying to disrupt crypto.
Recently: Metaplanet’s Bitcoin ‘Premium’ approaches $600,000 per BTC
Venture capital accelerates innovation, but also centralizes control through token distribution, board sheets and product roadmap. Solana is one of the leading blockchains that has received a lot of investment from companies such as A16Z and PolyChain Capital. This investment has fueled rapid growth, but also created centralisation of tokens and decision-making power among a small number of investors.
Most notable cryptographic projects such as Ethereum and Solana, whether it’s the irony of the old system or not, are ultimately built to serve current state agencies. The founding team locks up large pre-mines, gives early investors a favorable terminology, and constitutes an incentive towards the final exit rather than a long-term diversification. These behaviors reintroduce many similar power dynamics that Bitcoin has attempted to eliminate.
Decentralization is not an option
Decentralization is not only the economic freedom of individuals, but the essence of censorship resistance. Resistance to Bitcoin’s change protects it from being hijacked by strong profits. A network that views decentralization as a trade-off risk under the control of a new gatekeeper class. Decentralization must remain a top priority in order to maintain cryptographic promises.
Bitcoin’s strength lies in its neutrality and immutability, not its programmability or speed.
Crypto ecosystems need to return to these values ​​to avoid repeating mistakes in traditional financial systems. Rather than trends or institutional approval, the industry should recommend developing instruments for absolute financial independence. Returning to Bitcoin’s original vision is the only way to separate currency from the nation and regain control over money through a system that can withstand unreliable censorship.
Opinion: Dr. K, co-founder of Quai Network.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
