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The majority of people criticizing crypto lack basic knowledge crypto. They
are:
In this article, I’ll share my opinion about the crypto space by going through
the different critics.
As I have a web2 background (web development, and pen-testing), and a
web3. (dev and smart contract security) I can be more objective about the
critics and unravel the truth.
As of today in 2023, this is true, crypto is not scalable. (unless you sacrifice,
the decentralization or the security which is, of course, not an option)
7–20 transactions per second on Bitcoin and Ethereum is far from being
acceptable.
Moreover, as of today, L1 blockchains scaling solutions, like Solana failed to
deliver they promise of a stable & secure & scalable blockchain.
But there are 2 proven (and already working at a some extent) solutions to the
scaling problem (so it’s not just a “false promise”) :
They may be implemented in the near future and bring crypto to beyond 10s
thousands of transactions per second.
It’s true that a lot of web3 DApps were either “over-hyped” (NFT, shitcoins,
weird DEFI protocols) or can easily be done in web2. (without the need for
decentralization)
This is a small fraction of possible use cases of blockchain, although it’s not
revolutionary, there is more than enough to improve the world beyond simple
speculation.
In Ethereum, only 5 entities control more than half of the Ethereum stake.
https://pro.nansen.ai/eth2-deposit-contract
Moreover, the blockchain is still far less censored than traditional banks and
institutions as there are it’s economically inefficient.
Currently this is true, let’s be honest guys, most of people in crypto are here
only for the sake of money and don’t give a shit about the rest.
Although there are some real-life application described above, a lot of them
struggle to thrive.
As a result, I don’t foresee a lot scams coming for 2023 as most of people are
now aware of these scams.
Only, “value added” projects will survive the crypto winter, and the next bull
run may be “more serious”, note that this is just a prediction, it may end-up
way more differently.
This the case for only PoW currencies which require a lot of energy,
they represent only 3 out of the top 20 most capitalized crypto.
(Top1: Bitcoin, Top9: Dogecoin, Top:13 LiteCoin)
So this is true for only a limited share of crypto currencies, all new
blockchains don’t use this model and are more energy efficient.
Bitcoin was born in the beginning of 2009, and as of 2023 Crypto signed
his 14th birthday, today it’s regularly used by 10–300 million users
(depending on the estimation and the frequency, source: Cryptocurrency users
worldwide 2016–2022 | Statista)
If you compare it to the internet (born in 1991), 14 years later in 2005 internet
was used by 1 billion people (source: https://ourworldindata.org/internet)
So yes, this is true internet is a “more” revolutionary technology than crypto.
In fact, Internet was born on the 1960th…. (the ARPANET project) and a lot
of protocols you use everyday were created before the 1990…
Although crypto is quite old, The argument of “we’re not early anymore” is
false.
It’s more fair to compare the beginning of the internet with the beginning of
“web3” when Ethereum was created in mid-2015, 7.5 years a go (as of 2021.
The crypto community is still very strong and new technological advances are
coming to gradually improve most of the crypto drawbacks. (although
unfortunately they are very slow to implement.)
How will be the future of the crypto industry ?
Here is how I see the future of the industry in the next 5/10/20 years:
The crypto will mature, the prices will be less volatile. And they
will be no more scams than today in web2.
Fast improvement in cryptography will improve the blockchain (or
even create new types of “blockchain”) and help it to scale/reduce
the fees.
Integration of blockchain is some aspects of real life.
This was my opinion about the crypto space, If you have, an opinion too, let’s
share it in the comments of this article!