Opinion by: Dr. K, co-founder of the quai network
While Bitcoin is intended to enable people to opt out of currency state currency systems, the blockchain industry has since gone. Now, we see the government’s threat Overreach Blockchain solutions include prioritizing scalability and performance in decentralization.
Increasing networks such as Ethereum and Solana are certainly appealing, but these blockchains are made up of basic values in exchange for the use and adoption of institutions. To achieve the mission that Satoshi started, there was a scandal to return to the original Bitcoin currency ethos, which was a blessed neutral, unchanged money that could not be manipulated.
Inability is king
With a fixed supply of 21 million coins and regularly halt of eventsBitcoin releases financial certainty. No central authority or discovery can change Bitcoin’s supply. This position is Bitcoin as an incapable -believed to be predicted store of value against the back of money printing and extensive inflation, setting it from other forms of money. In addition, Bitcoin policies are very difficult to change, building long -term trust in the network.
Flexibility and performance, but at what cost?
Layer-1 (L1) major players such as Ethereum and Solana offer incompatible flexibility and performance, but with a stressful trade-off. The Management of Ethereum’s administration Updates Affecting gas fees and staking rewards are not always please with eth holders. In addition, Solana prioritizes speed and performance than everyone else, leaving weakly with increasing centralization levels. As a result of trade-offs, L1 networks such as Ethereum and Solana are severely weakened before censorship and manipulation, from governments, regulators, or strong corporate interests.
Until March 2024, Coinbase Controls 3.84 million ETH staked in 120,000 validators, representing 11.42% of the total staked ether, and this is the largest solo Ethereum node operator. This concentration brings centralization issues, as a number of large players, such as Coinbase, can threaten Ethereum’s decentralization and stigma Regulation risks. In addition, individual control is required and it is placed back into the hands of a large, centralized corporation – the complete opposite of the original vision for cryptocurrency.
The role of venture capital in crypto
The crypto industry began as a rebellion against Big Tech and the Gatekeeping of the Silicon Valley, where only accredited investors could return to startups and benefit from those earned in the early stages. The crypto hit that paradigm on its head. In the first instance, ordinary people, not VCs or insider, may participate in the creation of new technologies from one day. But now that the industry has had some time to mature, the venture capital has reassured itself, the dispensing crypto in ways that appealed to the systems itself is trying to disrupt.
Recently: Metaplanet’s Bitcoin ‘Premium’ is close to $ 600k per BTC
While the venture capital is in a hurry to change, it also controls control through token distribution, board chairs and control of product roadmaps. Solana was among the top blockchains who received a lot of investments from companies such as A16Z and Polychain Capital. This investment has fueled rapid growth but has also created a centralization of tokens and decision-making powers to a number of investors.
The most popular crypto projects, such as Ethereum and Solana – cynical of the old system or not – are eventually built to deliver institutions to their current state. Founding teams lock large pre-mines, provide favorable terms tiled to first investors, and structure incentives towards the release finally rather than long-term decentralization. These behavior re -produce many similar dynamic powers that Bitcoin sought to be eliminated.
Decentralization is not optional
Decentralization is the essence of resistance to censorship as well as individual economic independence. Bitcoin’s resistance to change protects it from being a hijack of powerful interests. Networks seeing decentralization as a trade-off risk falling under the control of a new gatekeeper class. To maintain the promise of crypto, decentralization must remain highest priority.
Bitcoin’s strength is in neutrality and inability, not its programmability or speed.
The crypto ecosystem needs to return to these values to avoid repeating the errors of the traditional financial system. Instead of institutional trends or approval, the industry should recommend developing instruments for full financial freedom. Returning to Bitcoin’s original vision is the only way to separate money from the state and regain control of money through an unreliable, censorship -resistant system.
Opinion by: Dr. K, co-founder of the Quai Network.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
