In the early days of cryptocurrency, it embodied a dual revolution of technology and politics. The Cypherpunk movement advocates for decentralization, privacy, and financial autonomy, aiming to free individuals from the control of traditional financial institutions and governments over their funds. However, as the industry gradually integrates with traditional finance, a quiet discussion has emerged regarding whether “decentralization still has a future and if Cypherpunk is merely an ideal.”
Traditional Finance x Crypto Technology: The Rise of Fintech Crypto
A tweet from professional risk manager Santisa has sparked heated discussions. He pointed out that current crypto technologies are being absorbed and integrated by traditional finance (TradFi), forming a “financial infrastructure built on crypto rails.”
TradFi on crypto rails will provide amazing improvements to people’s lives.
Allowing provable reports, interoperability and cryptographic one-block settlement for transactions will change the UX for billions of users.
This is not the dream of the cypherpunk crew that joined…
https://t.co/XNmJvcp8n2
These technologies grant unprecedented capabilities to traditional transactions, such as provable reports, interoperability, and one-block settlement. These innovations not only enhance efficiency but also provide a smoother and safer experience for billions of users worldwide. He lamented, “This is not the ideal future envisioned by Cypherpunk; it no longer centers on individual rights and does not exist to resist centralized structures.” However, it is undeniable that this represents a significant advancement for the world, a rational technological choice replacing utopian dreams.
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Cypherpunk Ideals: From Core Beliefs to Marginal Culture
As a once-passionate believer in crypto, Santisa admitted, “When most people can subscribe to Netflix instantly with just a credit card, who would still want to spend time setting up a P2P sharing network? Similarly, when TradFi can provide efficient and secure financial services, most people will no longer insist on self-custody and censorship-resistant financial tools.” However, he does not completely deny the future of Cypherpunk. He stated that, just like file-sharing technology, which accounts for less than 1% of global internet traffic, still exists: “The applications of Cypherpunk may also follow a similar niche path.” Even if 99% is used for debt settlements of physical assets, we can still do some cool, very Cypherpunk things with the remaining 1%.
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Why Cypherpunk Cannot Become Mainstream?
The difficulty of mainstreaming Cypherpunk ideals lies not only in its high demands for personal responsibility (such as managing private keys and understanding self-custody risks) but also in its design being insufficiently “user-friendly.” While anonymous transactions, censorship resistance mechanisms, and trustless frameworks are significant, they are too complex and not intuitive enough for the majority of users: the core selling point of fintech is “convenience,” which is a part that the Cypherpunk movement has always found hard to compromise. Just as the era of file sharing was replaced by streaming platforms, crypto applications are rapidly moving towards platformization, service-oriented models, and even “centralization.” This compromise, though deviating from the original intent of Cypherpunk, has greatly lowered the barrier to entry for users, further promoting the large-scale adoption of technology.
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A Transformation of Technology and Belief: Crypto is Dead, Long Live Crypto
At the end of his piece, Santisa proclaimed, “Crypto is dead. Long live crypto,” announcing the decline of the Cypherpunk ideal, emphasizing that the dream of Cypherpunk is still alive, just no longer mainstream. This seemingly contradictory declaration reveals an emerging trend: “The crypto we once knew, as a symbol of the decentralization revolution, has indeed gradually entered history. But the new generation of crypto technologies, as the underlying infrastructure for financial tools, is moving towards the mainstream, integrating with existing systems, becoming an invisible but indispensable presence.”
This may not be a betrayal but a transformation. As Santisa said, “The era of fintech crypto is beginning.” It focuses on efficiency and scalability, from on-chain settlements, cross-border payments, digital identities to the tokenization of physical assets. These applications may no longer promote anonymity and anti-establishment sentiments, but they have practically improved global financial infrastructure.
Repositioning Ideals, Grounded Technology: Is Cypherpunk Really Dead?
Perhaps the Cypherpunk ideal was never meant to become mainstream under the paradox of convenience; perhaps Cypherpunk will still flourish on Ethereum; perhaps centralization and decentralization will coexist, achieving a dual-track system of risks and returns. But the seeds it has sown will continue to influence today’s technological designs: values such as “open-source code, censorship resistance, and user sovereignty” have never disappeared. In the future, the spirit of Cypherpunk may evolve like hacker culture, becoming a continuously iterating marginal culture that drives a few to pursue ultimate freedom, while also becoming the roots and soul of the new crypto era, waiting for the next awakening and breakthrough.
Risk Warning
Cryptocurrency investments carry a high level of risk, with prices potentially fluctuating wildly, and you may lose all your principal. Please assess the risks carefully.