Council Discussion: The Blockchain Isn't Needed to Solve Every Problem
Jordan Yallen serves as the CEO of the blockchain technology company, MetaTope.
Decentralization and blockchain technology won't cure all the world's issues, as some matters simply don't necessitate decentralization or inclusion on the blockchain.
I join those who believe in the extraordinary potential of blockchain technology, yet realize that when it becomes ubiquitous, it won't become the magic cure-all promoting world salvation, despite what my colleagues might assert. Blockchain technology has the capability to significantly simplify and enhance our lives, but commonsense warns that it can't exist in isolation.
Despite this, some radical thinkers advocate for universal decentralization, while Bitcoin maximalists consider other cryptocurrencies inferior. This all-or-nothing approach jeopardizes the advancements made and escalates asset volatility. To embrace blockchain technologies as legitimate infrastructure and digital assets to evolve as a class, we should curtail the maximalist hype wave.
I am an ardent believer in crypto, NFTs, and blockchain's entire potential, but recognize the current condition of the industry and its true infancy. I don't believe widespread user adoption will happen overnight, nor are we anywhere close to the realization of a Web3 world (we're at Web 2.5 at best).
One lesson from the latest crypto boom was that the industry wasn't ready for widespread adoption. People attempting to navigate DeFi during the 2020-2021 craze found themselves lost, with barriers too high and deficient, user-friendly tech to lean on. Users reported dreadful experiences and eventually abandoned the sector.
Web3 technologies won't solve all the world's problems -- some tasks require no decentralization or immutable ledger improvement. Some sectors and their technologies flawlessly fulfill their respective needs.
Transferring each ticket to an NFT may hold merit, though it might not be necessary for every event type. Similarly, some people might prefer to maintain their original actual property deed instead of immortalizing it on the blockchain, as it's survived for centuries without needing such an upgrade.
Yet, the zealots continue to assert that everything from babies to Robot vacuums should be tokenized on the blockchain.
Maximalism impedes Web3.
Extreme Web3 evangelism also does our industry no favors. No one will pay for a digital copy of their plane ticket or appreciate the prospect of their banking information being exposed.
Instead, they might be open to Web3 benefits if it's explained to them how blockchain technology can ease their lives. The more Web3 is presented as the miracle cure for every problem, the more harm we inflict.
Web3 entrepreneurs also self-sabotage when they solely focus on blockchain tech and neglect exploring alternative avenues of success. Luca Netz, for example, purchased Pudgy Penguins for $2.5 million as an intellectual property venture and launched a Walmart plush toy line, fuelling the brand's exponential growth and securing a $9 million seed round. This is a powerful example of old-school marketing and business strategies complementing new tech, leading to significant success for Netz.
All technologies lie on a spectrum, and the entire tech world functions as an interconnected whole, but things will continuously evolve, so Web3 builders shouldn't be rigid with maximalist notions, such as Bitcoin serving as the only currency required globally. This belief is not only incorrect but also appears ludicrous given the present state of technologies and user sentiments.
This maximalist mentality is most prominent among Bitcoin maximalists, advocating the technology to the point of arguing that all Web3 technologies should be constructed exclusively using Bitcoin, disregarding the reality that it was never designed for such purposes, unlike other protocols, like Ethereum and Solana.
This maximalist belief is oversimplified in its understanding of the underlying technology and contradicts Bitcoin's core purpose. As a decentralized finance pioneer, it should instead be utilized to innovate and address existing issues instead of pursuing maximalist "solutions" to unneeded problems.
Not everything must be Web3.
While stimulating massive change is always difficult, and the brave individuals who embrace that challenge should be commended, achieving a world of widespread Web3 adoption isn't as simple as merely decentralizing every aspect.
Even the U.S.'s founding fathers grappled with the idea of decentralization while constructing our federal system, often debating the extent of government control to implement. The truth is that not everything requires decentralization, and the aspects that could benefit from it aren't always compelled to do so to the maximum.
Similarly, it's not correct that all industries would prosper from a cryptographic ledger. While some clearly would, like enterprise supply chain logistics, it's uncertain whether, for example, health outcomes would substantially improve through the inclusion of medical records on the blockchain.
And much like decentralization, certain aspects that could benefit from a permanent record might not necessitate a record for everything. As I previously mentioned, all technologies operate within a spectrum and often complement each other, so Web3 innovations should adhere to this principle as well.
Driving the idea that every global issue can be resolved through blockchain technology only delays us from actually enhancing anything.
The objective is to boost and simplify people's lives; adding infants and vacuums to the blockchain won't bring us closer to this aim.
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Despite the maximalist views advocating for the tokenization of everything, including babies and robot vacuums on the blockchain, Jordan Yallen, the CEO of MetaTope, understands that not every aspect of life requires decentralization or blockchain technology.
In the context of promoting Web3 technologies and digital assets, it's crucial to curtail the maximalist hype wave to ensure the industry's evolution and success, as suggested by Yallen.
