In his latest blog post, dated September 30, Jesse Walden, managing partner of Variant Fund, makes a stark observation: the values of the first blockchains are deeply rooted in “cypherpunk” ideology. However, they seem to be gradually moving away from today’s projects.
Indeed, the first decade of blockchain development was based on the original “cypherpunk” values of Bitcoin. Today, however, smart contract platforms are based more on the values of “performance, cost, profitability” and legal compliance than on the nobler ideals of the past.
Reasons for This Evolution Over Time
Born in the 80s as a reaction to state surveillance and online censorship, the “cypherpunk” movement advocated anonymity and freedom on the Internet. Satoshi Nakamoto, the creator of Bitcoin (BTC), is often regarded as its heir. Indeed, his creation embodies the Cypherpunk ideals of decentralization and resistance to censorship.
However, Jesse Walden of Variant Fund suggests that these core values may be fading in smart contract platforms. The pressure for institutional adoption is driving a focus on speed and compliance, to the detriment of outright decentralization. Applications such as stablecoins or the tokenization of real assets illustrate this trend.
A New Era for Smart Contracts
The democratization of cryptography, while bringing many advantages, sometimes requires making concessions. To make these technologies more accessible to the general public, certain fundamental principles of decentralization are sometimes relaxed slightly.
However, it is important to highlight the existence of pioneers capable of reconciling ideals with the mass market. This commercialization, while diluting certain aspects, opens up new prospects for a wider impact.
