The crypto sand castle collapsed once more. The current cryptocrash, one of the deepest to date, doesn’t come as a surprise. The intrinsic value of most cryptos is still highly questionable. Furthermore, the mainstream blockchain technologies show limited scalability until now, whereby even near zero cost Proof-Of-Stake (POS) chains are insufficiently sustainable. The NFT and crypto speculation hype of 2021 are over. Because we stopped trusting the crypto industry. It became, against its founding principles, overly centralized and interdependent. Moreover, the industry didn’t resolve the teething troubles of its underlying technologies satisfactorily.
In this light, it’s only healthy and logical that the crypto market lost more than 70% of its hype value over the past twelve months. Listed Coinbase lost even 81% of its value and took a $431 million hit in the first quarter of 2022. Bad crypto players like stable coin TerraUSD, bank Celsius, hedge fund Three Arrows Capital, and lender Vauld all but collapsed. The domino effect of crumbling interdependent actors not only represents a major clean up in this fintech space. But, also reveals crime, Ponzi schemes, the lack of intrinsic value creation and a risky centralization of resources and influence. Logically, the US and EU enforce more regulation to protect the small investor and limit the impact on the economy.
The crypto market is literally built on sand. Because the underlying technologies are not sustainable and scalable. Our own experiments with ICURY revealed over and over that the use case of mainstream blockchain tech doesn’t meet our high-volume low-cost expectations. Proof-Of-Work (Ethereum) and POS based tokens, including NFTs, are not sufficiently scalable. So, even the so-called near-zero cost blockchain networks (POS) are too inefficient for large-scale use cases.
Moreover, the DeFi (decentralized finance) bypasses are typically too centralized and thus vulnerable for attacks and crises. It’s only when we fully resolve such fundamental technological challenges in a completely decentralized crypto protocol layer as part of the wider IP stack, that the crypto market which is build on top of it, can start to become a stable and valuable part of our digitizing economies. In other words, we want a crypto transfer to be as easy, low-cost, and decentralized as sending an email.
Therefore, we can only fix the fundamentals of the crypto market with a zero fee crypto protocol. A protocol which we adopt like the common internet protocols. Only this guarantees equal access to a proven, global infrastructure. An infrastructure that inspires us to build meaningful solutions for every day life. Like what we all did on top of the internet.
To realize this, we have to ditch our fascination with the highly inefficient bitcoin and its POW-altcoins. We already have lost too much time with that. We also have to forget about the POS evolution, which brings too small benefits, and start to look at the zero cost protocols such as IOTA, x42, Nano or still others. Off these, IOTA seems to be the most serious approach, given the support by DELL and other industry players. After ample testing, a winning zero fee crypto protocol needs to be elected as a global standard at the expense of other initiatives. To ensure it’s widespread adoption in any browser or terminal. Only then, we can realize the dream of a decentralized and trustless crypto. And, avoid rebuilding a crypto sand castle in the future, doomed from the start.
Read further: ICURY, bitcoin, crypto, ethereum, iota, nft, POS, zero fee protocol
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