Coming back from some crypto events, from Zug to Dubai, via the Plan B Forum in Lugano, I brought home a thought, which is more of a question. Can you have an engaged and empowered blockchain community (ensuring the transparency and liquidity of its coin, as with Bitcoin) while respecting the strict rules and requirements of institutional businesses, like banks or pharmaceutical companies, that want to profit from the blockchain? efficiency of distributed ledgers, but should it align with industry standards and national laws? Is Bitcoin the future of blockchain? No.
Can a bank store all data in its own country and use the potential of a chain, without disturbing the community, which may reside in countries that its government considers non-compliant or with which it has difficulty trading, like China? Can an industrial group maintain the confidentiality of its information and differentiate itself from its competitors, using blockchain to certify world-class operations and bringing cryptographic advantages and benefits to new generations?
After 10 years of Ethereum, which is the ultimate incarnation of first generation blockchains, this dilemma remains. Will businesses or governments use Bitcoin or Ethereum, knowing that the majority of transactions are approved outside of their jurisdiction? Blockchains have failed businesses and the majority of individual investors.
For what? Ledgers do not guarantee scalability, as costs and transaction finality lag behind off-chain networks like VisaNet. Not all major chains (like Ethereum or Solana) accurately measure and actually reward the quality of node owners or coin holders. They don’t consider the scalability required by heavily regulated businesses, much less HIPAA or FDA certification, to name two. Channels are still infested with bad actors, and we all know and accept it, which alienates B2B use cases and long-term institutional investors.
On the other side of the dilemma, if I’m a miner or fan operating a node, all I want is a chance to prove my worth and fair compensation for being a member, thus breaking the big oligopoly whales, which harvest the most. advantages brought by mechanical algorithms. If I own a token, all I need is liquidity and some price predictability, which can be improved if companies join the party, because their game is always long term. A high-quality blockchain that rewards reputation and gradually eliminates bad actors will benefit both token holders and businesses.
Is there any way out of this? New chains are emerging that operate to give businesses the scalability and security to operate in heavily regulated markets, while providing the community with features such as proof of reputation and higher compensation than traditional channels. standard channels, so it can act as a decent community. member can turn into a real source of income, while breaking the cartel of all other extremely concentrated on-chain communities, including Bitcoin.
Without making this article too technical, the dilemma of serving both the community and businesses comes down to a choice. My options must be different whether I am CEO of Pharma Inc. or Bank Inc. (fantastic names) or I’m a young blockchain manager, based in Nigeria and just wanting to make a living from Web3. It’s marketing 101. You’re meeting the needs of two different audiences, and you have to do it beautifully.
Businesses need protocols for protection, localization and auditing, while reaching new audiences that only public channels can access. Node operators and token holders want fair treatment and higher incentives compared to a simple speculation system, otherwise they will always remain day traders.
Technology can solve this problem. The story of New Gen chains (and there are many) is one of innovation sought after and designed to become the new industry standard. We need choices. We must have decentralization, privacy and the ability to segment a chain. The world needs huge efficiency gains, and there is room for more than one dominant player.
A new chapter opens in the history of blockchain. It is about innovation on the business side, through national compliance, speed and efficiency, and innovation on the community side, with higher incentives, proof of reputation and a plan to long term for its token, which will make the community significantly richer. and committed.
10 years of blockchain have passed and we – the blockchain people – have failed businesses and consumers, except for a minority of individuals (let’s say so), who have gotten rich, continue to take the lead of the Top 50 and divert the media debate. . We need better for the next 10 years. We must serve the community and businesses equally, by making chains and cryptocurrencies fair and business-friendly.
Frank Pagano
