What is truly Crypto Native

Original title: What is a Real Crypto Native

Kang Shuiyue is the founder of Fox Tech and Way Network and chairman of Danyang Investment

From 2021, Crypto Native gradually entered the crypto industry. Almost every newcomer has heard this word before, because the old people are always saying it. But if you ask what the word "old man" means, some people may not be able to answer. Everyone may have a different answer to what Crypto Native is. But does it mean refreshing information about Crypto on Twitter every day, transferring most of your assets to BTC or ETH, staring at the market data every day, or just talking about big words like "decentralization"? Maybe both, maybe not.

We can see the number of mentions of Crypto Native searches across the web. It increased by 5.57 times in 2018, 7.52 times in 2021, and 2.85 times in the 11 months of 2022. With the passage of time, everyone for the Crypt Native attention shows an exponential growth law, and this growth trend has no signs of slowing down.

  Crypto Native's source of attention data: Meltwater.com

The ins and outs of Crypto Native

Crypto Native in the crypto world is a successor to the idea of decentralization of the original cryptocurrency. Crypto Native's narrative starting point is Satoshi Nakamoto and Bitcoin. As the cornerstone of cryptocurrency, Bitcoin is the origin of the concept of Crypto Native.

Since Bitcoin burst onto the scene in 2008, the world has had its first Crypto Native community. Under the influence of the Mentougou coin theft incident and the dark web "Silk Road", bitcoin peaked in 2011 and entered the winter. This group of people who actually own and trade bitcoin, they believe in cryptographic algorithms and blockchain technology, "Code is Law." In this case, Crypto Native is a person who believes in cryptographic algorithms and owns and uses Bitcoin.

Over time, Bitcoin has been dubbed "digital gold," with its commodity properties stealing the limelight from its monetary properties. Due to the entry of a large number of personnel and funds, the early infrastructure of the crypto industry was gradually built and improved during this period, and mining machines, payment scenarios, trading platforms, and financial derivatives were all gradually mature, which was well demonstrated by the rapid growth of Bitcoin's computing power.

When 2014 came, a significant event happened. Vitalik Buterin, the founder of Ethereum, released the white paper of the first edition of Ethereum, and pre-sold ETH on July 24, 2014. Then came the Ethereum virtual machine EVM and smart contracts, which marked a whole new era for the crypto industry. Similarly, at this time, the holdings of Crypto Native are not limited to Bitcoin, but also include Ethereum or other cryptocurrencies, but this group still believes in the cryptocurrency system established by cryptography and blockchain technology.

With the establishment and improvement of Ethereum ecology, people's imagination of public chain ecology has been given full play. With the endless emergence of ICO, a new financing method, more and more Dapps let people see the application value of blockchain. In addition, on-chain financial derivatives also began to develop, and derivatives such as contracts and loans facilitated the boom of centralized exchanges.

A look at Twitter posts from 2017 onwards gives us a taste of what it means. Jessica Verrilli @jess first used the term on Twitter, dated October 26, 2017, to refer to college entrepreneurs working on cryptocurrency-related projects. New "Internet native" or "mobile native" groups are maturing. Just like the Internet-native before, the so-called X-native seems to be born with stronger adaptability to some life styles and thinking patterns, and feel adapted to Tricky parts of them and can get into the circle more quickly. It is not difficult to see that the most important characteristics of Crypto-native are age and industry, that is, the young people who are likely to get their first exposure to crypto-currency-related jobs.

In 2017, it was the word that was tepid on Twitter. Andrew Spence in December 2017 pointed to Crypto-native as a new era, a new way of life. Crypto will change people's lifestyle imperceptibly and silently.

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Another Twitter user, Ryan Sean Adams, posted in October 2018 that Crypto Native refers to a way of operating a company that is structured under contract law and settled through the Legal system, a successor to a legal-native joint-stock company. It will be built through code, settled through blockchain. Here, Crypto-native tends to refer to a kind of underlying governance logic, that is, whether the source of normative behavior comes from law or code, and whether it comes from the business operation mechanism generated by the compliance with some kind of entity rules. The source of normative behavior comes from code known as DAOs (decentralized organizations).

 

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Beyond the literal meaning of the word, Crypto Native also represents a business model, In December 2020, Daniel explained the definition of crypto-native from the perspective of Crypto Native Person and Crypto Native Business:

1. A Crypto Native Person is a person who buys cryptocurrencies before owning any other assets (stocks, bonds, etc.).

2. Crypto Native Business is a decentralized protocol that supports functionality currently provided by CeFi or tradFi.

Daniel Chainview first divides and defines Crypto-native as the decentralized collection of people or businesses with specific keywords "buy", "asset", "decentralized" etc. Here, Crypto-native Business is understood as the decentralized business provided by TradFi or CeFi.

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From 2020 to 2022, DeFi, NFT, and GameFi came on strong, with countless projects pouring out to give the industry a shot in the arm. Crypto has never had such imagination and sky-high valuations. But the heat will pass and the speculation will fail. When the tide goes out, someone will be swimming naked after all. All Crypto natives need to re-examine the fundamentals and intrinsic value of the Crypto industry and return to the original heart.

Crypto Native

         

Decentralized

They are Centralized, Single-point, as opposed to centralized. Under the guidance of this philosophy, there is no centralized institution to do macro-control. Bitcoin, for example, is managed by a decentralized network, so it is independent and fearless. He does not fear the control of individuals, corporations or states. For example, if one country bans bitcoin and all other cryptocurrencies, another country might gladly take over as a way to attract entrepreneurs built on blockchain or miners who want to take advantage of the country's low energy prices. Even if governments around the world banded together to ban bitcoin and related cryptocurrencies completely, cryptocurrencies would not be eradicated as long as there were still connections and communications between individuals in society.

Untrust the Trustless mechanism

The opposite of that is Trust Assumption, Trusted Setup, Trusted Parties. The most Crypto Native way of transactions based on the cryptocurrency industry is to adopt the de-trust mechanism to provide a brand new product different from the traditional system, which only provides the basic rules and the way of proof rather than the overall subjective control. In essence, the crypto industry provides an efficient rules-based form of global human cooperation without expensive trust costs. The industry is based on objective proof (mathematics or cryptography) rather than subjective promises, discounting entities that were once widely trusted or trusted. A good example is Fox Tech. As the Ethereum expansion scheme zkRollup, Fox adopts zkFOAKS, a zero-knowledge proof system, which does not require any Trusted entity (No Trusted Setup) to participate in the process, and ensures the consistency, completeness and verifiability of information through pure cryptography and mathematical means. Thus, safer, more efficient and less costly results can be achieved.

Permissionless without permission

The opposite of that is Permission. Let's take Web3 infrastructure, basic resources, as an example. Its most important feature is a decentralized market that does not require licensing and has no barriers to entry. The so-called "no permission" means that anyone can enter the market. The most typical form of the market is a bilateral relationship, that is, the person who provides the resources and the person who consumes the resources. Permissionless means that no matter for whom and for what role, anyone can provide the resources and no matter who can consume the resources. This is fundamentally different from Web2.

For example, storage providers like AWS have provider threshold, and only their families can do this centralized provider. Although it is open to all consumer ends, there is no threshold at the consumer end, we don't think it is Permissionless. Whereas a decentralized storage like Arweave allows free access to the supply side, we would think of it as Permissionless.

Crypto Native believes that no matter who, for what kind of role, anyone can provide resources, and anyone can consume resources. Before Web3, we rarely saw such a market structure, where both the supply side and the consumer side of the market became Permissionless.
           

Individual sovereignty Sovereignty  Individual sovereignty

Crypto Native also places a special emphasis on individual sovereignty, which is a major difference between Web3 and Web2, especially the ownership of tokens and data. Writing, Posting, chatting, commenting on traditional Web2 content is censored and may be deleted. However, in the Web3 era, these data belong to the users themselves, and the data does have a certain degree of anti-censorship ability, it is difficult to lose. Why is it possible for Web3 to make ownership decisions that Web2 can't? An important technique is to have verifiability at the time the data is generated, which allows ownership of assets and data. The moment they are connected, the blockchain generates a verifiable time series to establish ownership at the consensus level. When our articles and other content are published in the traditional central server, single point server, there may be several backups, but these servers are all managed by some service providers, service providers can also do ownership certificate, but the data ownership belongs to these centralized entities. Look at Mirror, a content platform that delivers NFT to Ethereum and stores content on decentralized storage like Arweave. Even if one day Mirror is shut down, anyone can get the data restart 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 has this wave seemed so intense and widespread. The deep goal implied by Crypto Native is that this group believes that the technology brought by the crypto world can solve many deep-rooted problems in the real world. In the big stage of Web3 world, Crypto Native group is practicing the Decentralized concept, perfecting Trustless products and building Permissionless market, thus creating a society that effectively protects individual sovereignty. This is the light I see in the eyes of Crypto Native practitioners.

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