Cointelegraph reports that the foundational cypherpunk values that inspired early smart contract platforms may fade over the next decade due to the rising influence of institutional adoption, which emphasizes speed and compliance. In a blog post dated September 30, Jesse Walden, managing partner of Variant Fund, highlighted this transformation, noting that the first decade of blockchain development was rooted in Bitcoin’s cypherpunk ideals of censorship resistance, open source, and permissionlessness, aiming to create a democratic internet on a shared world computer.

Walden pointed out that today’s smart contract platforms are increasingly driven by factors like performance, cost-efficiency, profitability, and legal compliance, rather than the noble principles of the past. Many current applications, such as stablecoins and tokenization of real-world assets, do not necessarily require decentralization or permissionless access; they instead utilize the underlying blockchain’s decentralization for openness and interoperability.

The cypherpunk movement emerged in the 1980s as a reaction to government surveillance and censorship on the early internet. Bitcoin’s creator, Satoshi Nakamoto, is often seen as embodying cypherpunk values due to Bitcoin’s uncensorable design. Walden believes this shift does not signify the end of cypherpunk blockchains but rather “probably the end of the beginning.”

He noted that the commercialization of crypto necessitates certain compromises, like relaxing decentralization to enhance user accessibility. This is akin to how mainstream music often undergoes repackaging for commercial appeal, though some pioneering artists manage to maintain their core principles while reaching wider audiences. Walden argues that this blend of determination and pragmatism can drive cultural progress on a larger scale.

For those who feel disillusioned by the dilution of the original crypto values in the mainstream market, Walden encourages a different perspective, suggesting that the commercialization of crypto could signify the beginning of significant new opportunities.