Independence is more important than ever

When Nakamoto Atoshi released his Bitcoin (BTC) white paper, the vision was clear. It involves diversifying finances, empowering individuals and eliminating the need for financial intermediaries. It was a response to the failure of the traditional financial system, and a blueprint for something else that held personal responsibility at the forefront.

As Crypto is increasingly integrated with traditional finance, we now risk losing some of its original vision based on personal responsibility. Independent things in which individuals hold and protect digital assets and private keys are now overlooked in favour of exchange with custodians. It seems that security, autonomy and personal responsibility are quietly placed on the roadside, and is back towards the same traditional setup that Satoshi tried to confuse.

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Risks inherent to management systems

There is certainly an illusion of safety when people hand over exchanges, platforms, custodians and digital assets that promise to secure their assets. When users control third parties, they effectively waive ownership, but in many cases they are not fully aware of it. Unlike regulatory banks with established surveillance, many crypto managers operate with transparency, uncertain conditions and minimal user support if something goes wrong.

The collapse of FTX, freezes of assets above Celsius, and recent Buybit Hacks are all examples of asset mismanagement by centralized platforms, showing what happens when users rely on third parties. It is surprising that the industry has forgotten these lessons as centralized custody directly counters the establishment principles of code and its decentralized nature.

Independent things are not perfect

It’s dishonest to say that independence is simple and perfect, or that it should be used by all aspects of the cryptographic or all customers. Technical understanding, discipline and greater personal responsibility are required than leaving a third party. You can make mistakes, such as losing a recovery phrase or falling into a phishing attack, which can be costly, but is a trade-off if the control is on the user or if you are completely responsible for the assets.

However, it is important to recognize that these challenges can be overcome. These are areas that require innovation, such as better wallet infrastructure, improved security UX, more comprehensive user education, and tools that help individuals manage their private keys securely. The key difference is that in the self-reliance model, risk is transparent and power remains with the users and owners of the assets, rather than behind legal disclaimers or hidden in the fine print of the platform’s terms of service.

Traditional regulations are not suitable for cryptographic purposes

Governments around the world are currently exploring ways to regulate custody of digital assets, with the real risk of returning to legacy frameworks designed for traditional finance.

Applying those same rules to a fully decentralized system will completely miss the point. Surveillance is important, but it must be designed with the unique nature of cryptography in mind. When regulators deal with independence in the same way as traditional finance, they risk reverting innovation to centralized exchanges and wallet providers that are easier to manage, but more vulnerable to attacks and mismanagement.

Instead of trying to remodel older models, new regulations should focus on transparency, responsible product design, and clear disclosure. Independence should not be discouraged. It should be supported, correctly regulated and more accessible to everyday users.

Independence is the future path

Independence reflects broader cultural changes to individual responsibility. In a world that tackles economic volatility, geopolitical tensions and declining trust in traditional institutions, the tools for people to directly control their financial futures are more relevant than ever before.

The fundamental advantage of Crypto is that it allows a system in which individuals can own and manage wealth independently of others. This is a powerful concept and should not be diluted as the industry matures and becomes more mainstream.

To realize this vision, one must continue to prioritize self-duty as a technical solution and as a fundamental pillar of what cryptography is and what it means.

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