Introduction
The recent all-time high reached by Bitcoin has sparked excitement among its holders. However, this enthusiasm is not shared by the entire cryptocurrency community. The maximalists, who evangelize the technology to the point of arguing that all Web3 technologies should be built exclusively on Bitcoin, are a prime example of this phenomenon. But what exactly is maximalism in the context of Bitcoin?
What is Maximalism?
Maximalism refers to the idea that Bitcoin is the only cryptocurrency worth using and investing in. Proponents of this view argue that other cryptocurrencies, including Ethereum, are inferior and should not be used for building decentralized applications (dApps) or smart contracts.
A Misguided Focus on Decentralization
At its core, Bitcoin’s blockchain was created to decentralize finance. However, the maximalist attitude is fundamentally against what Bitcoin is meant to do. In fact, it’s ironic that proponents of decentralization are so focused on one particular technology that they neglect the very principles of decentralization.
The Problem with Decentralization
Decentralization is not a binary concept; rather, it exists on a spectrum. Some things work perfectly fine with traditional technologies, and the blockchain should complement these systems rather than replace them outright. The idea that every industry would benefit from decentralization or that an immutable ledger would improve every organizational system is overly simplistic.
The Limitations of Blockchain Technology
While the trend over the past few years has been to "bridge" Web2 and Web3, we should instead shift our focus to blending the two worlds to take what works from each and have the best user experience possible. It’s good to evolve and try new things, but it doesn’t help when Web3 builders fight complementary Web2 technologies.
All Technologies Exist on a Spectrum
Another reality that Web3 builders need to accept is that all technologies exist on a spectrum and work together in one way or another. The internet still serves as the basis for everything we do, Web2 technologies will continue to be the dominant online infrastructure for the foreseeable future, and the need to transact fiat currency is unlikely to ever go away.
Humans Will Always Be Involved
Indeed, if done right, we should be able to create trustless systems that require minimal human input. However, in reality, blockchain technology will always require human administrators and institutions to run the systems, at least to some degree.
The Concept of Trust
Trust is a concept that is often confused with verification. Records on an immutable ledger enable you to see the history of whatever was put onchain, but that doesn’t mean that thing onchain is trustworthy. Trust as a concept is much more malleable and almost emotional. It stems from things like reputation, history, and community acceptance.
The Reality of Blockchain Distribution
Blockchains today are far more distributed than decentralized, and Bitcoin is a perfect example. As of July 2024, just 1.86% of Bitcoin addresses held 90% of the total supply in circulation, which is not only far from any notion of "decentralization" but mirrors the distribution of wealth worldwide.
Web3 Builders Should Focus on Establishing a Durable Ecosystem
Web3 builders should focus on establishing a durable, flexible, wide-ranging ecosystem, not overly relying on one blockchain or another at the expense of the wider industry, even if that chain’s token has surpassed $100,000.
Conclusion
The maximalist mentality is holding back Web3 adoption by emphasizing decentralization to the point of exclusivity. By accepting that all technologies exist on a spectrum and working together, we can create a more inclusive and diverse ecosystem that benefits everyone involved. It’s time for Web3 builders to focus on establishing a durable, flexible, wide-ranging ecosystem, not overly relying on one blockchain or another at the expense of the wider industry.
About the Author
Jordan Yallen is the CEO of MetaTope, a 3D-focused Web3 tech company. Jordan attended Loyola Law School and became a licensed California attorney. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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