As cryptography becomes more popular, can it remain decentralized? – Tech Crunch

as global markets Continuing to face downward trends, crypto markets anticipate greater adoption as people see the digital asset sector as a hedge against inflation (although some prices are currently down from their 52-week mark).

Whether it’s first-time buyers of cryptocurrencies or people learning more about NFTs, Bitcoin, and the general cryptocurrency ecosystem, there has been a global rise in awareness of cryptocurrencies, and thus, the data suggests that.

About half of all cryptocurrency holders in the United States, Latin America, Asia Pacific, Brazil, Hong Kong and India first purchased digital assets in 2021, marking a major achievement for the nascent industry, according to a Gemini report. Globally, 41% of individuals surveyed who do not own cryptocurrency said they would be interested in learning more or buying it in 2022, the report added.


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At the end of 2021, the global crypto market had 295 million users, but that number could reach one billion by the end of 2022, based on last year’s growth rate, according to a report by Crypto.com. But given the current volatility in the market, with the total cryptocurrency market capitalization down 46% year-to-date, it is uncertain whether this billion will reach over the next six months.

Prevailing adoption amid a decentralized spirit

As cryptography has become more popular, regulators around the world have been closely monitoring the space (they say) to protect consumers. Just last week, the Group of Seven, an international political forum with members from the United States, Canada, France, Germany, Italy, Japan and the United Kingdom, called for rapid, consistent and comprehensive regulation of crypto-asset issuers and service providers.

But it can be encrypted truly Where governments globally stay in their home in the industry?

Decentralization can mean different things to different people, but most of the web3 community would agree that it is one of the main factors of what makes good cryptography, encryption. Therefore, as regulators enter the space and begin to chart frameworks and guidelines, decentralization must remain prominent across the industry if it is to uphold the core principles on which it was founded.

“Decentralization is at the heart of web3’s ethos, and should remain at its core as mainstream crypto adoption increases,” Wilson Wei, co-founder and CEO of CyberConnect, told TechCrunch. “For decentralization to remain central to cryptography and Web 3 as a whole, it starts with the infrastructure.”

Decentralization boils down to data ownership, Wei said. The problem with Web 2.0 is that a handful of tech giants like Facebook and Instagram own most of the users’ data, but in web3, the data should not be owned by the platform, he said: “In order to maintain decentralization, we need to make sure that the apps actually create Services on top of decentralized infrastructures, which ensure the supremacy of user data.”

This is a parallel development and one that complements one another, Jonathan Schimul, co-founder and CEO of Aleph.im, told TechCrunch. “There is, and will continue to be, cryptocurrencies and decentralized applications that people use and support because of the benefits they offer over decentralized options.”

For example, Aave is a decentralized lending protocol that allows users to obtain collateral-backed loans without authorization without the need for personal information or KYC/AML (know your customer/anti-money laundering) documents, Schemoul noted. But by contrast, centralized crypto platforms like BlockFi also offer loans secured in cryptocurrencies and operate in a permissible manner, more intrusive and less transparent than decentralized alternatives.

A world that coexists with Web 2.0 and web3

In some ways, Schemoul said, cryptography will remain decentralized while it is moving toward centralization in others. “That’s totally fine; web3 won’t replace web 2.0.”

“The ethos is not just decentralization for decentralization,” said Kurt Heemker, COO of the MENA Foundation and former head of commercial operations at Meta-Dim Association. “On the contrary, the underlying decentralized design is what makes cryptocurrency revolutionary.”

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