Starting in 2021, Crypto Native will gradually enter the encryption industry. Almost every newcomer who has just entered the circle has heard this term, because the old people in the circle always talk about it. But if you want to ask what the word “old man” means in the circle, some people may not be able to answer it. As for what Crypto Native is, everyone may have different answers. But does it mean refreshing information about Crypto on Twitter every day, transferring most of the property to BTC or ETH, staring at the market every day to analyze market data, or just talking about big words such as “decentralization”? Maybe both, maybe not.
We can see that the number of mentions of Crypto Native searched on the entire network increased by 5.57 times in 2018 compared with the previous year, increased by 7.52 times in 2021 compared with the previous year, and increased by 2.85 times in 11 months of 2022 compared with the previous year. With the passage of time, everyone’s attention to Crypt Native has shown an exponential growth law, and this growth trend shows no sign of slowing down.
The Ins and Outs of Crypto Native
Crypto Native in the encrypted world is the continuation of the idea of decentralization of native cryptocurrencies. The narrative starting point of Crypto Native is Satoshi Nakamoto and Bitcoin. As the cornerstone of cryptocurrency, Bitcoin, the decentralized idea behind it, and the trustless mechanism are the origin of the Crypto Native concept.
Since the birth of Bitcoin in 2008, the world has had the first batch of Crypto Native groups. Under the influence of the Mentougou coin theft incident and the dark web “Silk Road”, Bitcoin entered the cold winter. This group of people who actually own and trade Bitcoin believe in cryptography algorithms and blockchain technology, and advocate “Code is Law”. At this time, Crypto Natives are people who believe in cryptographic algorithms and own and use Bitcoin at the same time.
Over time, Bitcoin has been given the title of “digital gold”, and its commodity attributes have robbed the limelight of currency attributes. Due to the entry of a large number of people and funds, the early infrastructure of the encryption industry was gradually built and improved during this period, and mining machines, payment scenarios, trading platforms, and financial derivatives were gradually matured. The rapid growth of Bitcoin computing power is a good proof .
When the time came to 2014, a significant event happened. Vitalik Buterin, the founder of Ethereum, released the first white paper of Ethereum, and pre-sold ETH on July 24, 2014. Then the Ethereum virtual machine EVM and smart contracts came into being, which marked that the encryption industry has entered a new era. Similarly, the holding objects of Crypto Native at this time are not limited to Bitcoin, but also include Ethereum or other cryptocurrencies, but this group still firmly believes in the cryptocurrency system established by cryptography and blockchain technology.
With the establishment and improvement of the Ethereum ecology, people’s imagination of the public chain ecology has been fully utilized. With the emergence of new financing methods such as ICO, more and more dAPPs have made people see the application of the blockchain. value. Not only that, financial derivatives on the chain have also begun to develop, and derivatives such as contracts and loans have also promoted the prosperity of centralized exchanges.
In post-2017 Twitter posts, we can savor the connotations of the term. Jessica Verrilli @jess first used the word on Twitter on October 26, 2017, referring to college student entrepreneurs engaged in cryptocurrency-related projects. A new “Internet native” or “mobile native” group is maturing. Just like the Internet-natives that appeared before, the so-called X-natives seem to be born with a stronger ability to adapt to certain lifestyles and thinking patterns, and feel adaptable to the tricky part of it and can enter the circle more quickly. It is not difficult to see that the most important characteristics of Crypto-native are age and industry, that is, young people who may be the first to come into contact with cryptocurrency-related jobs.
2017 was a year when the term was still tepid on Twitter. Andrew Spence pointed Crypto-native to a new era and a new way of life in December 2017. Crypto will subtly and silently change people’s way of life.
Another Twitter user, Ryan Sean Adams, posted in October 2018 that Crypto Native refers to a company operating method constructed according to contract law and settled through the legal system, which is the successor of a Legal-native joint-stock company. It will be built by code and settled by blockchain. The Crypto-native here tends to refer to a kind of underlying governance logic, that is, whether the source of normative behavior comes from laws or codes, and whether it is a business operation mechanism based on compliance with which entity rules. The origin of normative behavior comes from the code that we know as DAO (Decentralized Organization).
In addition to the superficial interpretation of the word, Crypto Native also represents a business model. Daniel explained the definition of Crypto-native from the perspective of Crypto Native Person and Crypto Native Business in December 2020:
- A Crypto Native Person is someone who bought cryptocurrency before owning any other assets (stocks, bonds, etc.).
- Crypto Native Business is a decentralized protocol that supports functionality currently provided by CeFi or tradFi.
Daniel Chainview divided and defined Crypto-native for the first time, that is, a collection of people or businesses with specific keywords such as “buy”, “asset”, “decentralized”, etc. Here Crypto-native Business is understood as TradFi or CeFi providing decentralized business.
From 2020 to 2022, DeFi, NFT, and GameFi will rise strongly, and countless projects will emerge, giving the industry a dose of stimulant. Crypto has never had such imagination and sky-high valuation. But the heat will eventually pass, and speculation will eventually fail. When the tide goes out, someone is swimming naked. All Crypto Natives need to re-examine the fundamentals and intrinsic value of the Crypto industry and return to their original intentions.
Similar keywords to Crypto Native
The opposite is Centralized, Single-point. Under the guidance of this concept, there is no centralized institution to do macro regulation. For example, Bitcoin is governed by a decentralized network, so it is independent and fearless. It is not afraid of personal, corporate or state control over him. For example, if one country bans bitcoin and all other cryptocurrencies, another country may gladly take over as a way to attract entrepreneurs building on blockchains, or miners who want to take advantage of the country’s low-cost energy. Even if governments around the world band together to completely ban Bitcoin and related cryptocurrencies, as long as there is still connection and communication between individuals in society, cryptocurrencies will not be eradicated.
The opposite is Trust Assumption, Trusted Setup, Trusted Parties. The most Crypto Native way of trading based on the cryptocurrency industry is to use a trustless mechanism to provide a brand new product that is different from the traditional system. This product only provides basic rules and proof methods without doing a comprehensive subjective control. In essence, the encryption industry provides a rule-based efficient form of global human cooperation without expensive trust costs. The industry is based on objective proofs (mathematics or cryptography) rather than subjective promises, abandoning entities that were once widely or deeply trusted.
The opposite is Permission. Let’s take Web3 infrastructure and basic resources as an example. Its most important feature is a decentralized market without permission and without thresholds. The so-called “permission-free” means that anyone can enter this market. The most typical form of this market has a bilateral relationship, that is, those who provide resources and those who consume resources. Permissionless means that no matter who or what role, anyone can provide resources, and no matter who can consume resources. This is an essential difference from Web2. For example, storage providers like AWS have provider thresholds. Only they can be this centralized provider. Although it is open to all consumers and has no threshold on the consumer end, we don’t think it is permissionless. . However, decentralized storage such as Arweave allows the supply side to enter freely, and we would consider it Permissionless. Crypto Native believes that no matter who or what role, anyone can provide resources and anyone can consume resources. Such a market structure was rarely seen before Web3, and both the supply side and the consumer side of this market have become permissionless.
Crypto Native also places special emphasis on personal sovereignty, which is also a major difference between Web3 and Web2, especially the ownership of Token and data. Use the traditional Web2 to write articles, post, chat, and comment, all of which will be reviewed and may be deleted. In the Web3 era, these data belong to the user, and the data does have a certain ability to resist censorship and is difficult to lose. Why can Web3 make ownership but it is difficult for Web2? A very important technology is to have verifiability when the data is generated, which allows these assets and data to have ownership. The moment they are on-chain, the blockchain generates a verifiable time series that establishes ownership at the consensus level. When our articles and other content are published on traditional central servers and single-point servers, there may be several backups, but these servers are all managed by some service providers, and service providers can also provide proof of ownership, but Data ownership belongs entirely to these centralized entities. Looking at the content platform Mirror, it sends NFT to Ethereum and stores the content on decentralized storage such as Arweave. Even if Mirror is turned off one day, anyone can get the data to restart the platform and trace, verify and confirm the data and assets.
Now more and more people are concerned about how to tell the story of Crypto well, how to break the shackles of centralized finance, network, and society, and how to build a free and equal world. Never before in human history does this wave seem to have been more intense and widespread. The deep-seated goal implied by Crypto Native is that this group believes that the technology brought by the encrypted world can solve many deep-rooted intractable diseases in the real world. The Crypto Native group on the world stage of Web3 is practicing the concept of Decentralized, polishing Trustless products, and building a Permissionless market, thus creating a society that effectively protects individual sovereignty. This is exactly the light I see in the eyes of Crypto Native practitioners.