We often see how things operate when the pressures of the world are placed upon them. This is true for cryptocurrency and the world changing opportunity before it.
So far, it is falling short of the intended outcome. People who promote decentralization are still referring to an ideal that is not being hit. For this reason, the entire industry is getting a wake up call.
How decentralized is Web 3.0? The reality is that we are not seeing a lot of it. Most of the major names within the industry are proving themselves to be highly centralized. Coupled with the transparent nature of cryptocurrency and this could set the ideals of Web 3.0 on its ear.
There is no doubt that Russia's aggression towards Ukraine is deplorable. The world has a right to be upset with this nation's leadership and take action to counteract it. However, in doing so, we see a fundamental flaw within cryptocurrency: it is too centralized.
Governments appear able to approach the crypto holdings similar to how they operate within the existing financial framework. The idea of sanctioning Russia extends to cryptocurrency. We are seeing some interesting applications joining the mix.
This week, Metamask users in Russia found themselves unable to use their wallets. This was in response to the events that took place over the last few weeks. At the same time, those in Iran and Venezuela found themselves in the same situation. They were barred using geo-blocking.
OpenSea followed with similar actions. While there are claims of outages, it has to make us wonder.
Cryptocurrency was designed as a way around the reach of any government or bank. Unfortunately, the industry took it upon itself to creates it own "banks", points of vulnerability.
Bitcoin still serves this role, at least to a degree. The Bitcoin network operates outside the framework of the established system. We see the point of weakness arising in the applications that tied into it. Of course, for much of the rest, it is evident where this falls on the decentralized scale.
The only true way for things to change is for projects to develop with the intent on being distributed and open source. It is a proven method of countering the actions of governments. For the last 30 years, numerous legal battles were fought regarding encryption and other aspects governments deemed a "threat". Nevertheless, the cases usually went against the establishment.
Here is where we see the problem of WebVC. Venture Capitalists have no interest in either distributed nor open source. That does not fit into their business models. Instead, they seek to centralize as much as they can because that means control. If an application is successful, it is also very profitable.
While this might be a money maker, it is not a great path to freedom. As we are seeing, cryptocurrency and Web 3.0 is far from advertised. With all due respect to Elon Musk, what we do see is highly centralized. It is time for the industry to acknowledge that fact and change its course.
Most of the industry got caught up with monetary aspects of cryptocurrency and failed to focus upon the main objectives. Cryptocurrency was birthed as a means around the existing system. The establishment did a great job at building a system that is highly vulnerable and corrupted. It is also highly exclusionary. Sadly, we are seeing the same thing within Web 3.0 so far.
The bottom line is that if Russians, Iranians, or Venezuelans can be targeted, than anyone can. Here is where we have a problem. We know the power of governments and politicians is dangerous. Few, if any, use it responsibly. The last couple hundred years make this clear. Designing a new system of tyranny does not make much sense.
Of course, with each failure is an opportunity. We can learn from the examples being set forth before us. Since the ideals and focus of the industry are obviously awry, we have the ability to alter the path we are traveling on.
Decentralization is a direction, not a destination. Simply, we can acknowledge where we are at and work to improve. Each day there are opportunities to push the ideals forward. Making sure to protect what is being constructed is vital. We cannot presume that the establishment is not going to go after everything it can. It will.
A lot is evidenced by what we celebrate. Today, there were a number of articles just like this one discussing how the Virginia Senate approved banks within the state to be custodians for cryptocurrency. These are the things we tend to celebrate because we believe it will "moon" what we hold. The reality is we are handing the keys to freedom to those institutions that oppressed people for decades.
Why do we not celebrate and promote those aspects of this industry that are working towards the ideal we all seek? The obvious answer is there is so little that is actually seeking this end. However, when we come upon it, this is something that should be shouted from the rooftops.
Look at what the SpkNetwork is doing. That is a project that is flying under the radar. While that could be an advantage, it is exactly what people in the industry should be seeking out. Yet, when it comes to that, crickets.
Fortunately, there are projects like that out there. As we see more of the centralized aspects of cryptocurrency being exposed, it will likely open the door for those solutions that are outside of the present reach. Wouldn't be ironic if that is where the ultimately success is found? To achieve that end, the existing business structure has to be completely changed. It can happen although it might take some time.
It is important to focus upon the process. If we can keep decentralization as an ideal, and look to distribute different aspects of the industry, over time we will see that expand. That is what is required to truly revolutionize the world and bring Web 3.0 into being.
If not, we simply will hand more power to those entities that seek to control and enslave the masses.
This is not going to change from the top-down. It is going to require the efforts of everyone involved.
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