Jesse Walden, managing partner at Variant Fund, predicts that the original cypherpunk ideals behind smart contract platforms may diminish in the coming decade as institutional adoption prioritizes speed and compliance.
In a recent blog post, Walden noted that the early blockchain development was fueled by Bitcoin’s cypherpunk values—censorship resistance, open-source principles, permissionlessness, and the vision of a more democratic internet powered by a shared world computer.
However, today’s smart contract platforms are increasingly influenced by performance, cost-effectiveness, profitability, and legal compliance, overshadowing the noble ideals of the past.
Walden highlighted that many popular applications for smart contracts, such as stablecoins, real-world asset (RWA) tokenization, and decentralized physical infrastructure networks (DePIN), often do not require decentralization or permissionlessness. Instead, they focus on leveraging the underlying blockchain’s features for openness, interoperability, and settlement.
The cypherpunk movement emerged in the 1980s as a reaction against government surveillance and censorship, championing free speech in the digital age. Bitcoin creator Satoshi Nakamoto is often viewed as a cypherpunk for the uncensorable and permissionless design of the Bitcoin network.
While Walden acknowledges this shift, he believes it signifies “the end of the beginning” for cypherpunk blockchains rather than their demise. He emphasizes that as crypto becomes more commercialized, certain compromises are inevitable—such as sacrificing some decentralization to accelerate user access to wallets and applications.
This evolution isn’t entirely negative. Walden compares it to how mainstream music transforms over time, often losing some edge in exchange for broader appeal. He cites pioneering artists who successfully navigate the balance between core principles and mass-market palatability, ultimately amplifying their cultural impact.
In summary, as the crypto landscape matures, the integration of commercial interests may redefine its foundational values, steering it towards greater mainstream acceptance while still retaining traces of its cypherpunk origins.
4o mini
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
