- The evolution of blockchain and smart contracts is shifting focus from cypherpunk ideals to market demands for speed and compliance.
- Decentralization remains crucial, yet scalability may require compromises, pushing for a balance between principles and practicality.
- Commercializing blockchain tech could enhance accessibility, even if it dilutes original decentralization values.
The next decade of smart contract blockchains will most likely experience a change in the original idea of decentralization, openness, and censorship resistance compared to the market requirements. Jesse Walden recently posted an X post about how this technology that came from Bitcoin’s cypherpunk principles is now changing as it moves towards more practical concerns like speed, price, revenue, and regulation.
The origins of the blockchain were much closer to cypherpunk values as exemplified by the Bitcoin. These were censorship resistance, open-source, and permissionless systems. But the market that is considered primary focuses on performance, cost, and compliance. According to Walden, this conflict of interest will define the future of blockchain.
Decentralization in Blockchain
The analyst pointed out that most of the blockchain applications such as stablecoins and real estate assets need to be completely decentralized. However, their structure requires a permission less approach than the previous ones in many instances. This change is forcing early adopters to question the worth of large cap cryptocurrencies and base assets of new chains.
The analyst has said this is something that might be difficult to accept, but thinks it is a good thing. He said that commercialization of these technologies make them available to more people. It may mean some concessions, but it shapes the world more than anything else. Other factors that make technology to grow and become relevant are commercialization.
Walden admitted that some decentralization might be an inevitable cost of scalability. Other solutions such as rollups or integrated architectures may allow for systems to scale while not forgetting the initial concepts. Once blockchain gains more usage, the next frontier is to enhance decentralization.
In his opinion, blockchain is like other movements that had to reconcile between the principles and the real world. He said that although the ideology may seem watered down, the fact that it is reaching more people is important. This process may make more progress in the long run than the other approach.
According to Walden, it is just the beginning of the commercialization of crypto. The technology could therefore be able to reach more users across the globe by adjusting to market conditions. Though the way may not always be perfect, it does provide the platform for those basic principles of blockchain to expand further.
