Encryption Native: The Pioneer of the Blockchain World

Since 2021, the term "crypto-native" has gradually become popular in the blockchain industry. Almost every new member has heard of this term, as it is frequently mentioned by industry veterans. However, if you ask these veterans about the specific meaning of the term, you may get different answers. Does "crypto-native" mean following cryptocurrency news on social media every day, transferring most of your assets to Bitcoin or Ethereum, analyzing market data daily, or frequently using professional terms like "decentralized"? It could be all of these, or none of them.

Data shows that the mentions of "encryption native" across the network have grown exponentially. In 2018, it increased by 5.57 times compared to the previous year, in 2021 it grew by 7.52 times compared to the previous year, and in the first 11 months of 2022, it increased by 2.85 times compared to the previous year. Over time, people's attention to "encryption native" continues to rise, and there are no signs of this growth trend slowing down.

Origin and Development of Encryption

The concept of "crypto-native" in the encryption world originates from Satoshi Nakamoto and the decentralized philosophy of Bitcoin. As the cornerstone of cryptocurrency, Bitcoin's underlying decentralized philosophy and trustless mechanism are the starting points of the "crypto-native" concept.

After the emergence of Bitcoin in 2008, the first "crypto-native" communities appeared in the world. Influenced by some major events, Bitcoin reached a peak in 2011 before entering a period of stagnation. This group of people who truly own and use Bitcoin believes in cryptographic algorithms and Blockchain technology, advocating "code is law." At that time, "crypto-native" referred to those who believe in cryptographic algorithms and simultaneously own and use Bitcoin.

As time has passed, Bitcoin has been given the title of "digital gold," with its commodity attributes surpassing its monetary attributes. The influx of large numbers of people and funds has driven the improvement of early infrastructure in the encryption industry, including mining machines, payment scenarios, trading platforms, and financial derivatives. The rapid growth of Bitcoin's computing power is the best proof of this.

In 2014, the founder of Ethereum released the initial white paper for Ethereum and conducted the ETH presale. Subsequently, the Ethereum Virtual Machine and smart contracts were born, marking the entry of the encryption industry into a new era. At this time, the scope of "crypto-native" expanded to include other cryptocurrencies, including Ethereum, but this group still firmly believes in the cryptocurrency system built on cryptography and Blockchain technology.

The establishment and perfection of the Ethereum ecosystem have stimulated people's imagination about public chain ecosystems. New financing methods are emerging one after another, and more and more decentralized applications are demonstrating the practical value of Blockchain. At the same time, the development of on-chain financial derivatives has also promoted the prosperity of centralized exchanges.

Since 2017, discussions about the term "crypto-native" have gradually increased on social media. Some compare it to a new generation of "internet-native" or "mobile-native" groups, believing that these individuals have a stronger adaptability to certain lifestyles and mindsets, allowing them to quickly integrate into the industry. At that time, "crypto-native" primarily referred to young cryptocurrency practitioners.

Between 2017 and 2018, some people began to view "crypto-native" as a new era and lifestyle, believing that encryption technology would subtly change people's lives. Others defined it as a new type of company operation based on code rather than law, known as decentralized autonomous organizations (DAO).

By 2020, some have provided a definition of "crypto-native" from both personal and business perspectives:

1. Encryption native individuals: Those who purchase cryptocurrency before buying any other assets (such as stocks, bonds).
2. Native Encryption Enterprises: Decentralized protocols that provide functions currently offered by centralized finance or traditional finance.

From 2020 to 2022, the booming development of decentralized finance, non-fungible tokens, and game finance injected new vitality into the industry. However, the craze will eventually fade, and speculation will ultimately fail. When the market returns to rationality, all crypto natives need to re-examine the fundamentals and intrinsic value of the industry and return to their original intentions.

The Core Concept of Native Encryption

1. Decentralization: In contrast to centralization, decentralized networks are not controlled by individuals, companies, or governments. Even under regulatory pressure, decentralized systems can continue to exist globally.

2. Trustless mechanism: It does not rely on traditional trust assumptions or trusted third parties, but is based on mathematical and cryptographic proofs. This mechanism provides an efficient form of global cooperation based on rules, without the expensive costs of trust.

3. Permissionless: Anyone can freely enter the market, whether providing resources or consuming resources. This is fundamentally different from traditional Web2 platforms, which typically have barriers on the supply side.

4. Personal Sovereignty: Emphasizes the individual's ownership of their data and assets. In the Web3 era, user-generated content and data belong to the users themselves and possess a certain degree of censorship resistance. This ownership is confirmed and verified through Blockchain technology at the moment the data is generated.

The native encryption community is practicing the concept of decentralization, developing trustless products, and building permissionless markets to create a society that protects personal sovereignty. They believe that encryption technology can solve many deeply rooted problems in the real world and bring a freer and more equal future for human society.