I was wrong about Web3 adoption and centralization
The cost of reaching mainstream web3 adoption isn't worth the compromise of our mission and values.
A few months ago, I wrote a piece about how web3 needs language market-fit in order to reach a greater audience and achieve mainstream adoption.
I was wrong - somewhat at least. I had always thought that the main goal was to bring web3 mainstream so we can grow this revolution against centralized authority and control. No more censorship, no more gatekeepers, no more uncertainty.
To do this, we would focus on simplifying the language we use to speak to the larger audience and build web2 solutions and experiences that seamlessly onboard individuals to web3.
In other words, we need to make web3 so simple to use and understand through familiarity - whether it's using conventional language, experience or design. It’s normal for us to gravitate towards things that are recognizable and within our 'status quo' because it's safe and comfortable. The great unknown without any guardrails is just too scary and risky for the average person, particularly when it comes to finance.
That's why there was a space for hybrid solutions that offer a bridge to web3 and crypto, while still operating under a centralized organization. It would look, feel and operate like a traditional organization with a team making all the decisions. While there is a very valid argument that these platforms miss the whole purpose of blockchain technology, we also can't deny that Coinbase, Binance and Celsius have brought a lot of people into crypto, and isn't that what we want?
Well, I'm not so sure anymore.
In February, the crypto community erupted into a huge uproar when Canada's law enforcements ordered various centralized crypto exchanges to freeze the accounts of individuals linked to the Freedom Convoy trucker protest.
Even more recently, a major CeFi crypto lending and borrowing platform announced that they would be "pausing all withdrawals, Swap, and transfers between accounts" due to extreme market conditions.
What's even more troubling is that decentralized platforms are also collapsing under the pressure and compromising the core principles they were built upon. Solend, Solana's decentralized lending and borrowing protocol issued a proposal to "grant emergency power to temporarily take over the whale's account so the liquidation can be executed OTC."
All this had added nothing but more fuel to the argument between centralization and decentralization. Some say more regulation to protect users is the path to mass adoption. Others would combat that statement and say that misses the whole point of blockchain technology, which I agree.
The culture of crypto was built upon the aspiration to uproot our traditional financial system and strive towards extreme ownership and responsibility. Beyond decentralizing finance, other applications built upon blockchain technology was meant to move us towards a new era of the internet that is freer, fairer and censorship-resistant.
So what is the debate really about? Well, like any good organization, you have a mission and set of values that it was founded on. However, through these hybrid CeDeFi solutions we've been onboarding a ton of newcomers that don’t necessarily understand the whole ethos of the blockchain or are even ready to take full responsibility and ownership. That’s why we have this debate.
We've been so fixated on this goal to make web3 and crypto mainstream by building consumer-friendly web2 solutions. But maybe we're getting a bit ahead of ourselves. Maybe we should focus our attention back on building solutions for the crypto-natives who understand how to use it and why we use it. Once we build products for them that are so compelling that it makes every other person want to try it, that's when we know we’ve succeeded.
To close my thoughts, I think that what is happening with these centralized platform and the overwhelming market fear is necessary to remind us to stay true to our mission and purpose. This is a minor setback for us, but I'm hopeful that it will progress us in the long run to nurture and build for native web3 users, and welcome others with open arms when they're ready.
Hi, I’m Oleena and welcome to Cryptocurious Creator, a space for courageous and contrarian minded people. If you enjoy going down rabbit holes and exploring different topics, including the future of work and society, the state of media and technology, Web3 and current world issues, let’s go down these holes together 🐰🕳️.