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In a recent blog post titled “Make Ethereum Cypherpunk Again,” Ethereum co-founder Vitalik Buterin expressed concerns about the veering trajectory of Web3 from its original vision.
Buterin contends that the foundational principles of Web3 have gradually receded as various projects within the cryptocurrency space shift focus away from the core idea of decentralization.
Web3’s Ideological Shift: A Growing Divide
Buterin identifies a substantial ideological divide, where segments of the non-blockchain decentralization community view the crypto world as a distraction rather than a kindred spirit and potent ally.
Initially coined by Ethereum co-founder Gavin Wood, the term Web3 was conceived not merely as ‘Bitcoin plus smart contracts’ but as part of a broader set of technologies forming the foundation of a more open internet stack.
However, Vitalik Buterin observes that the practical use of cryptocurrency for financial transactions in many countries often relies on centralized means, such as internal transfers on centralized exchange accounts or trading USDT on platforms like Tron.
Vitalik Blames Rising Transaction Fees for the Shift
Vitalik Buterin points to a significant culprit behind the observed shift — the surge in transaction fees. When the cost of interacting with the blockchain was minimal, ranging from $0.001 to $0.1, developers envisioned diverse applications using blockchain technology in both financial and non-financial realms. However, with transaction fees surpassing $100, Buterin highlights the increasing prominence of ‘degen gamblers’ – high-risk traders – as a dominant user group.
As degen gamblers become the primary users on a large scale, Buterin argues that this reshapes public perception and internal culture within the crypto space. He emphasizes that the rise in transaction fees has played a pivotal role in steering Web3 away from its decentralized ethos.
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