Crypto’s technical debt: 10 items on the backlog

The next is a customer post from John deVadoss, Co-Founder of the InterWork Alliancez.

The crypto universe is presently smitten by generative AI, with the notion of “Brokers,” putatively powered by crypto “rails” and coordinated thru on-chain super contracts. Right here will not be any longer a correct recommendation for the easy reason that one can’t form “Brokers” on the stochastic quicksand that’s a Broad Language Model (LLM). LLMs have a blueprint to play with admire to the ingenious technology of tips and affirm material (e.g., code); alternatively, the equal creativity manifests thru malicious latent behavior, i.e., deception. Caveat venditor.

Moreover it’s a ways in vogue to focus on about quantum computing—in direction of post-quantum encryption and “futureproofing” crypto protocols. Elliptic-curve cryptography, as presently applied, is a possibility, certain; alternatively, remarkable of the final ground space is at very best discipline to polynomial scale threats, and entry to quantum will doubtless live in lifting all boats (e.g., Proof of Work becomes that remarkable extra difficult for each person). However right here is the nub: accurate-world quantum computing is just a few decades away. Hakuna Matata.

While we are distracted by these radiant glossy objects, core impact priorities, decisions, and commerce-offs are collecting rust and are at possibility of turning into “correct sufficient” when they wants to be aggressively reexamined. I list 10 of those beneath:

1. Social Consensus. If ever there have been an anachronism within the crypto ecosystem, this idea of “Social Consensus” exemplifies it. Social Consensus is how so-known as neighborhood leaders hasten their clans; it has no space in a crypto protocol within the 300 and sixty five days 2025.
2. On-chain Governance. Following on from social consensus, what came about to on-chain governance? Too sophisticated? Did we accurate quit? And but, we think we are in a position to manipulate AI Brokers on-chain?
3. Miner-extractable Tag.Is it now acceptable that miners and block proposers can siphon revenue by manipulating how transactions are prioritized, excluded, rearranged, or altered within the blocks?
4. The Oracle Scenario. Has it now change into stale records that the oracle discipline is an financial discipline and is now no longer a technical discipline? Is this collateral damage from the shift to Proof of Stake? And isn’t this a slippery slope support to pseudo-centralization?
5. Centralized Stablecoins. Talking about centralization—aren’t centralized stablecoins unquestionably CBDC-lite? Why the two-faced pushback on (personal) Central Banks when the wheels of crypto are greased by (personal) centralized stablecoins?
6. Settlement Layers; and L1s vs L2s.There will not be any longer any such thing as a such ingredient as a settlement layer, and there will not be any such thing as a such ingredient as an L1 vs. L2. Any chain (along side so-known as L1s and alt L1s) can change into an L2 of every other chain by posting ledger recordsdata and deploying a bridge contract. We must live confusing ourselves and clean up the terminology.
7. Privacy. Somewhere along the system, we have misplaced the spirit of the Cypherpunk and the crucial for privateness. Perchance the idea of Privacy Pools is how crypto protocols will in a roundabout map stability regulatory compliance and privateness. Fwiw, it’ll be a predominant-price exercise of zero-records proofs.
8. Rollups. In involving phrases, Rollups accomplished appropriate are mini-blockchains. Unfortunately, they’ve flown largely beneath the radar and gotten away with a bunch of disorders—from multi-sig rug-pulls thru to centralized sequencer MEV and CR, and all the system in between. We want a full-scale clean-up of terminology and execution semantics concerning rollups.
9. Centralized staking and block constructing. With the mandate to transfer to Proof of Stake, we are stuck with the increasing consolidation (centralization) of both staking and block constructing. Increasingly extra, this weakens censorship resistance, as personal characterize flows dominate. This takes us support plump-circle: whither permissionless and trustless? Or attain we no longer care as lengthy as the number goes up?
10. Public items funding. Number goes up brings up the longer-term explain and demand of funding public items. The chance remains to be entrance and center for crypto protocols to play a particular and meaningful blueprint in funding public items. We must remind ourselves that right here’s a high-precedence backlog merchandise.