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Last winter , I plant myself at a dinner party political party in the city . It was a mixed bunch , by which I mean hoi polloi who understood my work , those who did n’t , or those who were questioning of it . I ’m a crypto attorney and insurance proponent , so I ’m used to questions like : Are you a lawyer for Bitcoin ? And do you even use a cant ?
As we all know , the crypto industry had been rock at the end of 2022 , which meant I fielded more questions than common . At one point , a Quaker pulled me aside and ask , “ Is this the end of crypto ? Are you hunky-dory ? ”
Now , a class later , I can answer with trust : Not only was it not the final stage , but 2023 was also actually in force for crypto . I’m more committed to this blank space than ever , and going into 2024 , I ’m tell that the engineering science will persist — that crypto is here to stay — even in the aspect of repeated disconfirming printing press , continued naysayers , and lasting global regulatory pressure .
The optimist ’s case for crypto is simple : Technical maturity is occurring in tandem with regulative headway and extensive adoption .
But to be an optimist in crypto is actually to be a realist , to receipt not only the exciting developments we see entering 2024 , but also the challenge we must take head - on in the year ahead . I call this approach “ crypto optimist realism ” : an recognition of both how far we have issue forth and how far we have to go .
Even if 2023 exceeded the expectations of optimists like myself , it does not have in mind that 2024 will be a cakewalk . In fact , in the three subject that count most to crypto — expert promotion , regulatory progression , and espousal — the tailwinds taking us into 2024 will be met with continued headwind we must subdue to progress into a mature industriousness .
The technology advanced faster than anyone imagined. Now we need to show why that matters.
In the wake of centralized “ crypto - in - name - only ” financial collapses , 2023 bore out a vitalized recommitment to advancing sustainable , hardened , decentralized networks . The technology , across wide-ranging networks , is finally getting to a place that can dextrously handle what “ normies ” would expect from the net itself , whether it be for financial , social , communicating / messaging , or informational applications .
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Last twelvemonth , the industry obsessed over zero - knowledge technology , zkEVMs , and scaling solutions , rightly so . Massive technological leaps come to life at scale , resist the expectations of many who believe that if such technology were possible outside of numerical theorems , it would n’t be potential for decades .
There are now faster , more affordable , and more effective ways to transact and interact on the internet , secured by decentralized database hosted by computers globally that allow soul to preserve and control their own data , value , and capacity . The current state of blockchain definitely feels like something out of “ Neuromancer . ”
But here we are , living it .
Now the challenge is ensuring that millions of masses worldwide can live this future tense , too .
The first chasm to cross is how to talk accessibly about what blockchains actually do and why they ’re better , at least for certain use caseful , than what we have now . The use of insider price ( “ rollups , ” “ smart contracts , ” “ oracle ” ) with the traditional world is often counterproductive . Jargon makes the tech and the manufacture esoteric , isolationist , and unobtainable . So much of the lexicon connect with blockchain developed for a little , developer consultation , which imply to grow alongside the boom reach of the tech , we must change how we talk about it , too .
With some tech challenges well on their manner to being solve at scale leaf , a primary hurdle stay to make the why of blockchain better understood .
This means explaining how the technology provides existent , tangible benefit in a manner easy grasped on a ball-shaped basis and across tekki , normies , and industry .
“Regulatory clarity” advanced in unexpected ways, but the AML quicksand requires a solution
For those of us engaging on policy matters , the end of 2022 was existential . It was hard to sound how regulator and policymakers could engage meaningfully after the industry writ prominent had been plastered with integrity issues that arose from the downfall of business that shall not be refer ( and that you have intercourse well by now ) . Much to my pleasant surprise , last year saw significant battle by policymakers around the orb on crypto matters , in many overconfident way I could not have prognosticate . Globally , 2023 look :
In analog , advancement on crypto policy in the U.S. also came in hope - for but unexpected decision from the Court .
Numerous federal Book of Judges — appointed by presidents from both parties — show a particular understanding of the nuances and departure presented by the engineering and the style the industry occasion . TheRipple , Grayscaleand Uniswap royal court all recognized much of the tilt around decentralization and ego - detention that the industry has been making for years . In doing so , these courts show that certain regulators ’ positions really judge to fit the crypto square rowlock into the TradFi round hole , with limited results .
The determination in Risley v. Uniswap Labs et al . is particularly remarkable for two reasons . First , the decision dives late into the applied science around decentralised finance . It recognizes that software system developers innovate with new engineering can not be liable for the actions of nameless , unaffiliated third parties who may employ in “ high-risk act ” via the software ( a corollary to the decisions in Napster and Grokster more than two decades ago ) . Second , the decision realise that we do n’t know what crypto assets are at this time — “ security system , good or something else . ” Making that differentiation is a conclusion in Congress ’ purview . This latter realisation is also remarkable since the SEC ’s case against Coinbase , which hinge in large part on whether “ item are security , ” is before the same court .
Despite these advancements , the industry does not have the “ regulative lucidity ” for which it has been asking . In fact , the challenge for 2024 is greater than ever : How do we process with regulators and policymakers globally to combat unsound histrion using crypto for outlaw means ? This question , one that ’s generally referred to as the AML ( anti - money laundering ) issue , is crucial for crypto to not only prosper , but also to survive .
How the industriousness can and should come up to the question of AML requires its own article ( or article ! ) , but our challenge on the regulative front is clear . The industry must band together to put up viable solutions that speak to the regulatory goal of detection and intimidation of forged histrion .
Broader use cases now abound, but we need to make them more useful
It will come as no surprise that I would dub 2023 “ the Year of the Use Case . ” It was a year in which I was need in helping set in motion an open , interactive website , The Value Prop(thevalueprop.io ) , to showcase habit cases for blockchain engineering all over the world . This site aggregates novel blockchain - base applications already in existence .
Think avatars on Reddit , digital shoes on Nike , or loyalty NFT reward programs with Starbucks . Think major brand experimenting with what it looks like to let go of total control over loyalty programs and decimal point , alternatively relinquishing these into the custody and ownership of users . The California DMV look intotokenizing car titles ; there are experimentation with puttingland registration on - chainin Peru ; and aroundhalf of Indian stateshave set about to incorporate across unlike services , includingpolice complaints .
recall tokenization of off - strand assets in the financial sector and beyond , where JPMorgan , Franklin Templeton , BNY Mellon , Mirae Asset Securities , and many others have already begun tokenizing plus , withsome estimatesputting the turn of total tokenized assets already at $ 3 billion . projection like Courtyard and Regen connection allow for tokenization of asset like Pokémon cards and carbon credit .
While the former group will allow our current fiscal system to move more quickly and expeditiously , the latter will transform who can take part in the economy , and how .
Across nearly any upright you could conceive of , some component of blockchain has commence to appear .
Although more and more people are interact with some aspect of some blockchain every 24-hour interval , many without even knowing it , the challenge now is focusing the industry on use case that are themostimpactful , themostgame change . Builders need to keep building , but in ways that have powerful appeal . That signify call back beyond the long - standing tale of “ banking the unbanked , ” which , for in effect or for worse , is a write up we have moved beyond .
In gild to control that adoption proliferates and the value of this technology is swallow , especially in the face of very cheap crypto pessimist ( the doomers ! ) , builders should lean into product - market burst ( PMF ) that is already strong with some crypto habit cases , like stablecoins . Building and introduce on this succeeder means think beyond quondam story , with PMF in mind .
This will be a challenge . So much of this outer space has been focused on price and loudness for a number of year , index of adoption .
This winter , I skitter the dinner party parties , opt to bring and plan for some of the challenge talk over above . The momentum of 2023 has led to a grow sense , even among friends and acquaintances who do n’t follow the space closely , that the industriousness and I are okay , that crypto is here to stay .
Regardless of the challenge the industry face up going into 2024 , I am as affirmative as ever : Those who are still build are the good , most passionate people who will allow the manufacture — and this engineering — to reach its full potential .
