Introduction:
I would dare to say that Blockchain, Crypto, NFTs and Web3 are one of the greatest tech innovations of all time. Even though it is not perfect as it keeps evolving, it is definitely an amazing breakthrough for our lives and society. The core principles of decentralization, transparency and empowerment are very bold statements, challenging the status quo. But after a couple of years, proven examples of great and successful projects and initiatives, we also can see bad things happening such as scammers are growing, Ponzi schemes are increasing and even racism, sexism and what not.
So, the question is how are we sure we are going in the right direction? Are we failing Blockchain, Crypto, NFT and Web3 core purpose?
The Core Foundation of Crypto, Web3, Blockchain, and NFTs:
At their core, cryptocurrencies, Web3 platforms, blockchain technology, and NFTs are founded on principles of decentralization, transparency, and empowerment. They offer innovative solutions for trustless transactions, decentralized governance, and ownership verification, promising to revolutionize industries and empower individuals worldwide.
Bitcoin (Satoshi Nakamoto) = Satoshi Nakamoto saw Bitcoin as a decentralized digital currency, free from the control of central authorities such as governments and banks. The fixed supply to fight inflation and cryptographic security, Bitcoin's objective was to provide a peer-to-peer electronic cash system, secure, with no border transaction limits, and without intermediaries.
Ethereum (Vitalik Buterin) = Vitalik Buterin, co-founder of Ethereum, started the project with a vision to build a global platform for decentralized applications (DApps) and smart contracts. This would enable blockchain developers to create programmable agreements and decentralized protocols, innovating finance, governance, and beyond.
Cardano (Charles Hoskinson) = Charles Hoskinson founded Cardano with a focus on scalability, interoperability, and sustainability. Cardano's blockchain focuses on providing secure and scalable infrastructure for the future of finance and governance.
Polygon/Matic Founders (Jaynti Kanani, Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic) = The founders of Polygon (formerly Matic Network) aimed to address the scalability challenges of Ethereum. Polygon enables faster and cheaper transactions on Ethereum.
Solana (Anatoly Yakovenko) = Anatoly Yakovenko created Solana with the goal of delivering high-performance blockchain with low fees. The Proof of History mechanism enables fast and cost-effective transactions, facilitating the scalability and usability of Web3 applications.
These founders, among others, embraced the potential of blockchain technology to build platforms prioritizing decentralization, transparency, and accessibility, paving the way for a more inclusive and decentralized digital economy.
Tech Evolvement vs. Social Impact:
Crypto has indeed made significant and disruptive changes in technology, without a doubt. Considering the three core principles—decentralization, transparency, and empowerment—it's clear that decentralization and transparency have seen substantial progress. Yet, while empowerment is present, its translation into tangible real-world issues, such as combating poverty, addressing unequal opportunities, and promoting fair wealth distribution, still has a long way to go. I mean, why not use this amazing technology to address social issues that our current social models or centralized governments have failed to tackle?
Utopia?
Considering what we see the most in the crypto, web3, NFT space are communications such as:
Buy it now and make millions!
Or Drop your wallet to get thousands of coins
Or even worse things.
Yes. It sounds unreal. Especially if we look at the principles we have mentioned, we may come to the same conclusion of Polynya, in her article “Crypto's broken moral compass”. Where she highlights the lack of morals within the crypto community, leading to Scams, Ponzi models, Racism, sexism and others unethical behaviours.
But as a complementary view we can be aware of this and try to see things like Vitalik Buterin, in his paper "What else could memecoins be?" Where he proposes ideas for positive impact like charity coins or Robin Hood games, contributing to social good while still providing entertainment value.
Intentional or lack of knowledge?
We can’t deny, scams and intentional Ponzi schemes exist, but as in life, nothing is so straightforward. There are many up and down, many turns and corners that we need to be aware of.
I’ve seen many projects starting with good intentions, but due to lack of knowledge or a still learning approach, or many other adversities, things went bad.
For example:
You may have the better idea to create a good project, with genuine intention. If the Tokenomics are not well thought out and sustainable, the project might not even last 1 day and you might be faced as a scammer.
This happened with the person who launched the PEPE coin. @Rhett Mankind. He has shared it on his YouTube video, on how after the 1st liquidity pool he had to close and relaunch the project.
What to do then? Block people from launching their projects? Of course not. This goes against the freedom we all expect. To begin with, what about making educational content reliable and easily available, so people can be more aware of how technology and Tokenomics work, but also many other things related to blockchain, crypto.
You might say, c’mon we have plenty of content out there. Yes, I agree, however, how to distinguish between what is reliable or not. That is the challenge today.
Maybe @ElonMusk could help us on that, by adding a tag on twitter saying the level of reliability of that profile. (that could work as a feedback from the community, not allowing the person to change it, just displaying it or not).
Greed and Empathy
Despite very few people, I assume it is correct to say that 99% of the people in the crypto community are there for the chance to become a millionaire and “hang up the boots” from one day to another.
Well, I’m not here to tell you what is right or wrong. Everyone is free to do whatever you want with your life.
But blockchain technology, more precisely Crypto and NFTs, gives you an opportunity to give it back to the community.
I’m not talking about posts such as: I’m feeling generous today, drop your wallet and I will give 10 coins for the first 100 people. If you want to do that. It is up to you.
I’m talking about giving back in a way to empower the community.
You could fund projects you like, by adding more liquidity to it.
You could sponsor a NFT artist, that is struggling and write in the NFT contract to receive back some %
You could participate in platforms funding crypto projects and invest on it
You could share your knowledge, your experience, your failures.
Remember who you were and from where you came from:
Before Crypto, you might have been a person working 9-5p.m., 5 days a week and worried with monthly bills.
Now, you have more than enough. Not only for the month, but for the year and some, even have more than enough for decades to come.
But like you were before, there are still many out there. They are still struggling, still in pain and debt, still worried on how to make the money last to the end of the month.
And I’m not only talking about people outside of the crypto world, in the crypto community we still have many people struggling like this
So, yes! Greed can be a problem if you let it guide you**. Mix that greed with a good dose of Empathy** and not only you will be better, but the crypto community will be better.
P.S.: By the way**, do we have a platform** out there**, where people can create a personal or group funding** and NFT artists or Blockchain Developers can apply to receive it for their projects? They would have to fulfil some requirements and explain a bit of the project to be accepted or not, but that could be a good idea. If you know, share it.
Adoption Challenges and Global Reach:
While crypto adoption has increased a lot over the past years, with millions of users worldwide, yet it remains a niche market compared to the global population. Less than 10% of people around the world have crypto and less than 1% of the world's population actively engages with blockchain technology. Even though the market has more than 2.5 Trillion Dollars, at the moment I’m writing this paper.
How to overcome this awareness gap and widespread education initiatives to onboard more individuals into the crypto ecosystem? Not forgetting we still need to fix the broken moral compass with scammers, ponzi models and what not.
How can we increase blockchain adoption and make the desired empowerment principle come true?
We seek inspiration. We look to people that are trying to make a positive impact. Because, despite all the challenges, several influential figures are actively engaged in the crypto, web, and NFT space, contributing positively and paving the way for a brighter future. Some of them:
Elon Musk, known for his innovative ventures and advocacy for cryptocurrency, continues to push boundaries and explore new possibilities.
Gary Vee (Gary Vaynerchuk), a prominent entrepreneur and investor, frequently discusses the potential of blockchain technology and its role in shaping the future economy.
Andreas M. Antonopoulos, a renowned Bitcoin advocate and author, educates audiences worldwide about the transformative power of decentralized technologies.
Meltem Demirors, Chief Strategy Officer at CoinShares, is a vocal advocate for Bitcoin and blockchain adoption, advocating for transparency and innovation in the crypto space.
Balaji Srinivasan, an entrepreneur and former Coinbase CTO, champions decentralized technologies and their potential to empower individuals and communities.
Laura Shin, a crypto journalist and host of the "Unchained" podcast, provides valuable insights into the world of blockchain and cryptocurrency, fostering understanding and awareness among her audience.
Chris Burniske, a partner at Placeholder Ventures and author of "Cryptoassets," is committed to advancing the crypto ecosystem through research, investment, and education.
Nick Szabo, a computer scientist and cryptographer, is widely regarded as one of the pioneers of blockchain technology, with his contributions laying the groundwork for the development of cryptocurrencies.
Emin Gün Sirer, founder of Avalanche and a professor at Cornell University, is dedicated to creating scalable and secure blockchain solutions that drive innovation and empower users.
Caitlin Long, founder and CEO of Avanti Financial Group, is a prominent advocate for blockchain-friendly regulation and financial inclusion, working to bridge the gap between traditional finance and the crypto industry.
Anthony Pompliano (Pomp), co-founder of Morgan Creek Digital and host of the "Pomp Podcast," is a vocal proponent of Bitcoin and blockchain technology, promoting their adoption and mainstream acceptance.
Development Team such as 0xPARC
There are many others out there, these are just a few of them. For example, check this list of Initiatives for Social Impact:
Gitcoin - facilitates crowdfunding for open-source software projects, fostering collaboration and innovation within the developer community.
The Giving Block - enables cryptocurrency donations to nonprofits, expanding philanthropic opportunities and increasing transparency in charitable giving.
Impact Market - is a decentralized platform for investing in impact-driven projects, empowering individuals to allocate capital towards social and environmental causes.
Giveth - is a decentralized platform for charitable giving, empowering donors to support causes they care about directly. The platform utilizes blockchain technology to ensure transparency and accountability in donations.
AidCoin - is a blockchain-based platform that facilitates transparency and traceability in charitable donations. By tokenizing donations, AidCoin ensures that funds are allocated efficiently and reaches intended beneficiaries, reducing the risk of fraud and corruption in the philanthropic sector.
Conclusion:
In conclusion, the principles of decentralization, transparency, and empowerment form the bedrock of the blockchain and cryptocurrency industry. Visionaries like Satoshi Nakamoto, Vitalik Buterin, and others have laid the foundation to make it possible. However, despite the technological improvements and the efforts of numerous individuals and projects, significant challenges remain in translating these principles into tangible social impact.
As we reflect on the contributions listed on this paper, it becomes clear that collaboration is essential to overcome the obstacles ahead. While projects like Gitcoin, The Giving Block, and Impact Market are doing good in leveraging blockchain for positive change, some questions are still opened:
It is not how many scams and fraud schemes. But why do they feel so comfortable in the crypto space, and how can we address the root causes?
It is not about Memecoins, because they have their good side, mostly being the entry point or starting point for many people in crypto. However, what factors contribute to the proliferation of Ponzi and rug-pull schemes within the meme coin ecosystem, and how can we promote responsible innovation?
Why do individuals feel ok to propagate racism, sexism, and unethical behaviour in their crypto projects, and what measures can be taken to create a more respectful community?
How can we ensure that crypto stops doing what is happening in the society with unequal wealth concentration? What can we do to ensure wealth in crypto space is distributed equally?
Facing these questions as an invitation for a collective reflection and action. Let’s engage in an open dialogue and collaborative problem-solving, we can work towards a future where blockchain technology fulfils its promise of decentralization, transparency, and empowerment for all.
I believe in it.
If you also believe join the discussion in the Community Are We Failing Crypto Value
Sincerely,
b.a.r.
April 2nd, 2024