GuShiio.com The first path leads to more freedom and adventure, while the second path means stronger control and restraint.
Author: hitesh.eth
Compiled by: Shenchao TechFlow
I won’t confirm or challenge your beliefs with charts, historical structural comparisons, or popular theories-so if you’re just looking for approval or expecting to see information that matches your expectations, you may be disappointed. Because what I’m going to talk about next requires you to focus on every detail I share.
Two paths forward
Currently, the crypto market is at a critical crossroads, facing two different paths forward-each with its own unique advantages and disadvantages.
The first path leads to more freedom and adventure, while the second path means stronger control and restraint.
The nature of encryption: the pursuit of anarchy
Encryption is not an emerging concept-its concept has been in the works for fifty or sixty years. Thousands of cryptographers laid the foundation for today’s technological development. Their goal is to build a true “cryptographic anarchy.”
This is a world that does not require legal identity, a society where everyone can be anonymous, and an ecology completely free from government control. In this ecosystem, everything such as governance, currency, communication, interaction and collaboration is achieved in a decentralized way through encryption.
In such a world, people are free to create open markets, conduct unconditional transactions, avoid taxes, and control their wealth and lives.
However, our lives have long been controlled by corrupt governments and banks. By creating a false sense of security, the government has made us never realize that we have been trapped in this economic trap for centuries.
Bitcoin: The call for awakening
We need an awakening, and Bitcoin is the call for this awakening.
Bitcoin points the way for building cryptographic anarchy. It provides a new alternative to the traditional financial system, giving individuals complete control of their wealth without relying on banks or governments. For the first time, Bitcoin has achieved a truly decentralized, censory-resistant and transparent monetary system. “The word anarchy is controversial to many people, often conjuring up chaos that is completely out of control. However, in fact, this is not what it really means. Anarchy simply refers to a system without a ruler or central authority, in which all cooperation and coordination are based entirely on voluntary behavior between individuals within the system. Etymology, the Greek word anarhkia literally means that there is no ruler, where an means no and arkhia means ruler.
This concept is the core foundation for Bitcoin to function properly as a distributed network and protocol. In the Bitcoin network, no one has absolute control. If there was a centralized controller, Bitcoin would no longer be a distributed system of autonomous individuals who interacted with each other on a voluntary basis.
Some people tend to view Bitcoin as an objective truth similar to the laws of physics and believe that it can serve as a frame of reference for human behavior. However, this view is not correct. It actually confuses the differences between objectivity, intersubjectivity and subjectivity.
Objective truth is a fact that exists whether people believe it or not. For example, the law of universal gravitation states that an object with sufficient mass exerts a gravitational effect on other objects around it. Even if all of mankind-every man, woman and child-were convinced that gravity didn’t exist, it wouldn’t change the fact that gravity continued to work on them.”
Photo source: BitcoinMagazine
In 2008, Satoshi Nakamoto released a white paper on Bitcoin. This is not only a technological revolution, but also an ideological change. It questions centralized monetary control and reveals the inherent flaws of the fiat currency system controlled by governments and financial elites. This marks the first step in human civilization’s beginning to extricate itself from long-term economic oppression.
The emergence of Ethereum has further promoted the development of blockchain technology. It builds a complete development infrastructure that allows developers to explore various application scenarios of blockchain, setting off the first wave of cryptographic anarchy.
Tokenize everything
In order to achieve encrypted anarchy, we need a strong infrastructure that allows people to tokenize everything-whether concepts described in words or content presented in images, give it new value and build liquidity markets around these things.
“Computer technology is entering a new era that will empower individuals and groups of people and the ability to communicate and interact in a completely anonymous manner. Two people can exchange information, conduct business, and sign electronic contracts without knowing the other person’s real name or legal identity. With extensive rerouting of encrypted packets and almost completely tamper-resistant encryption protocols, interactions on the network will become untraceable. In such an environment, reputation will become the most important asset, even more important than today’s credit ratings. The development of these technologies will revolutionize the way governments regulate, affect their ability to tax and economic control, and will also subvert traditional ways of information confidentiality and even reshape the definition of trust and reputation.
The theoretical basis for this upcoming revolution-which will undoubtedly be a dual social and economic revolution-was established a decade ago. Its core technologies include public key encryption, Zero-Knowledge Interactive Proof Systems, and a variety of software protocols for interaction, authentication, and verification. In the past, these studies have focused mainly on academic conferences in Europe and the United States and have been closely monitored by the National Security Agency. However, until recently, computer networks and personal computers were fast enough to make these theories a reality. Further technological developments over the next decade will make these ideas economically feasible and almost impossible to stop. Technologies such as high-speed networks, ISDN, tamper-resistant devices, smart cards, satellites, Ku-band transmitters, multi-core high-performance personal computers, and encryption chips under development will be the key to driving this change.
Of course, countries will try to stop the spread of the technology through various means, including national security, the possibility of technology being used by drug dealers and tax evaders, and concerns about the collapse of social order. These concerns have some merit: Cryptographic anarchy could allow state secrets to be freely traded and could also create a market for illegal and stolen goods. Even anonymous computerized markets may be prone to disturbing transactions such as assassination and extortion. Various criminal organizations and foreign forces may also become major users of “CryptoNet”. However, these resistance will not stop the spread of crypto anarchy.
Just as the invention of printing weakened the dominance of medieval guilds and social power structures, cryptography technology would fundamentally change the way businesses and governments intervened in economic transactions. Combined with the emerging information market, cryptographic anarchism will create a freely traded market for anything that can be expressed in words and pictures. Just as seemingly simple inventions-such as barbed wire-revolutionized the concept of land and property rights in the Western Frontier by fending vast pastures and farmland, discoveries from an unpopular branch of the field of mathematics will become tools to cut the barbed wire of intellectual property.
You have nothing to lose except the barbed wire fence that binds you!”
Source: "Declaration of Encryption Anarchy"
In 1988, legendary cryptopunk Timothy C. In his “Cryptographic Anarchy Manifesto”, May paints a future world full of freedom and privacy. He envisions a society that transcends government control and centralized control by giving humans privacy, autonomy and freedom through encryption. In his vision, encrypted communications, anonymous transactions and decentralized systems would render traditional oppressive institutions useless. His declaration is not only a technical blueprint, but also an ideological enlightenment that laid the ideological foundation for Bitcoin and the entire cryptocurrency movement. The manifesto became a call to developers and thinkers to see cryptography as the ultimate tool for human liberation.
Bonding Curve: The key to unlocking new markets
If you put aside price fluctuations in the market for a while and focus only on the trends behind them, you will find that a key liquidity start-up tool was unlocked last year-the Bonding Curve.
The Bonding Curve is a mathematical model that creates thousands of different liquidity markets around anything that can be described in words. For image assets, we have already witnessed the explosion of NFT (non-homogeneous tokens) in the last crypto market cycle. Today, this emerging experiment is gradually leading us to build more liquidity markets to meet the needs of different fields.
Use Memes as a Market
On the surface, creating liquid markets for things that may be meaningless may seem absurd, but in fact, the core concept of this behavior is Memes. We are creating markets after markets because we believe that there will always be people willing to speculate around a Meme or concept. So we provide them with an opportunity to participate and profit from online transactions.
When people engage in speculation, they often have beliefs about what they are investing in based on certain theories or data. So, essentially, we are building liquidity markets for various tokenized beliefs. These markets not only meet the needs of speculators, but also promote the diversification of the entire crypto ecosystem.
The Wild West of Encrypted Anarchy
In crypto anarchy, people can trade all kinds of things, including opinions, trends, stories, articles, songs, Memes, research papers, reputations, gossip, reviews, recipes, and even many things we haven’t imagined yet. Content… it’s a very free and open state.
It all started before Timothy C. It was foreseen in May’s “Declaration of Cryptography Anarchy”. We were supposed to reach this stage one day, but now, with advances in technology and infrastructure, we are able to support all kinds of novel liquidity markets. However, the main problem right now is that most of these markets are being manipulated by powerful players who are trying to achieve more benefits through centralization.
To achieve fair allocation of incentives in these liquid markets, an important solution is to build a reputation layer. The system allows market participants to verify the creator’s reputation before trading, and creators can also verify the user’s reputation before accepting users into the market. https://x.com/eli5_defi/status/1830538370046673067
Now, we already have technologies like ZkTLS, a zero-knowledge transport layer security protocol, and infrastructure like @nillionnetwork. These tools provide us with the possibility to build reputation systems that achieve a fairer allocation of incentives at the application level. As these technologies mature, we will eventually solve the reputation issues in cryptographic anarchy.
Future: Two clear paths
The future of the crypto world will present two very different development paths, and you can switch between these two paths based on your needs and preferences.
The first path is to participate in an evolving state of crypto anarchy. Here, new markets emerge one after another, attention shifts rapidly, and wealth fluctuates in the speculative cycle. Those who can adapt quickly to change and take action will have an advantage in this environment.
The second path leads to a regulated and controlled cryptoeconomy. Here, stability, compliance and structured investment opportunities are at the core. This path is more suitable for traditional financial institutions and large institutional investors, who tend to operate in a more predictable but also more restricted environment.
We are at a critical watershed in the history of encryption. When the United States officially introduces encryption regulations, the boundary between these two paths will become clearer.
Regulated markets will focus on Web3 companies that generate real revenue and projects with abundant cash flows, which will also be the starting point of the first bull cycle under authoritative supervision.
At the same time, in the midst of crypto anarchy, changes in marginal markets will continue to advance at an alarming rate. If you face 100 markets, 99 of them may experience declines, while the remaining one may absorb liquidity from other markets and rise rapidly. In this environment, attention will become particularly valuable, and those who can keenly understand trends and respond flexibly to change will still have an advantage in this competition.
Somewhere in the anarchy of encryption, there is always a bull market quietly brewing. Whether you can discover it and seize the opportunity depends on your vision and action.
Cheer up! You have nothing to lose except the obstacles that hold you back.
