Opinion by Jordan Yallen, CEO of MetaTope
As I write this article, Bitcoin (BTC) has reached a new all-time high, and the excitement is palpable. However, amidst the celebration, I’d like to offer a dose of reality to those who follow the "Bitcoin maximalist" ideology.
The Misconceptions of Bitcoin Maximalism
At its core, Bitcoin’s blockchain was designed to decentralize finance. However, the maximalist attitude, which advocates for building all Web3 technologies exclusively on Bitcoin, is fundamentally against what Bitcoin stands for. The reality is that not everything needs to be decentralized or on-chain.
Let’s take a closer look at some examples that illustrate this point:
TakeBitcoin Puppets
Some people are paying exorbitant amounts of money (over $17,000) for images supposedly drawn by children. These intentionally sloppy and basic creations shouldn’t exist. Similarly, Bitcoin Ordinals, while an innovative solution to representing information on-chain through inscribing data on single satoshis, are inefficient and clog the Bitcoin network. Binance’s decision to shut down support for Ordinals indicates that, despite their appeal to purists or maximalists, they are merely novelties.
The Broader Impact of Maximalism
The Bitcoin maximalist belief influences Bitcoin adoption, the development of all blockchain-related technologies, and the broader narrative around the Web3 industry itself. However, this ideology is not only flawed but also limiting the potential of our nascent industry.
The Blockchain Isn’t Right for Everything
Many Web3 builders continue to ignore a crucial reality: the blockchain isn’t right for everything. It’s not true that every industry would benefit from decentralization or that an immutable ledger would improve every organizational system. In fact, some things work perfectly fine with the technologies we have today, and the blockchain should complement these systems rather than replace them outright.
A More Nuanced Approach
Rather than trying to force-fit every problem into a decentralized solution, we should focus on blending Web2 and Web3 to create the best user experience possible. This approach will allow us to leverage the strengths of both worlds and avoid the limitations of a single technology.
All Technologies Exist on a Spectrum
Another essential reality that Web3 builders need to accept is that all technologies exist on a spectrum and work together in one way or another. The internet still serves as the basis for everything we do, Web2 technologies will continue to dominate online infrastructure for the foreseeable future, and the need to transact fiat currency is unlikely to ever disappear.
Even static pages and fillable forms from the early days of the web (Web1) are still alive. Any blockchain system, particularly those in finance, will have to find a way to coexist with more traditional systems that represent the current standard.
Humans Will Always Be Involved
Blockchain technology will always require human administrators and institutions to run the systems, at least to some degree. While trustless systems with minimal human input are desirable, they will only be as good as the underlying code itself. In cases where things go wrong, humans still need to intervene.
The Concept of "Trust"
Maximalists often confuse the concept of ‘trust’ with ‘verification’, which is what the blockchain does. Records on an immutable ledger enable you to see the history of whatever was put on-chain, but this doesn’t necessarily mean that trust has been established. In fact, many people don’t even know their wallet holds the cryptographic key to access their tokens rather than the tokens themselves.
Decentralization: A Misconception
Blockchain technology often relies on the systems it’s designed to replace, which is more akin to shifting the work elsewhere, not actually decentralizing the processes, rules, and access underlying the system. The fact that only 1.86% of Bitcoin addresses hold 90% of the total supply in circulation mirrors the distribution of wealth worldwide.
Focusing on a Durable Ecosystem
Web3 builders should focus on establishing a durable, flexible, wide-ranging ecosystem rather than overly relying on one blockchain or another at the expense of the wider industry. Even if that chain’s token has surpassed $100,000, we should prioritize the growth and development of our ecosystem over individual interests.
Conclusion
In conclusion, Bitcoin maximalism is misguided and limiting the potential of our nascent industry. By acknowledging the complexities and nuances of blockchain technology and its applications, we can create a more inclusive and robust ecosystem that benefits everyone involved.
Jordan Yallen is the CEO of MetaTope, a 3D-focused Web3 tech company. Jordan attended Loyola Law School and became a licensed California attorney.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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