The True Essence of Encryption

In recent years, the concept of encryption native has gradually emerged in the encryption industry. Although many newcomers have heard this term, different people may have different understandings of its specific meaning. So, does encryption native simply mean paying attention to cryptocurrency news every day, investing most of one's assets in Bitcoin or Ethereum, or frequently using terms like "decentralized"? The answer may not be that simple.

Data shows that the attention to encryption natives across the network has grown exponentially. In 2018, it increased by 5.57 times compared to the previous year, in 2021 it increased 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. This growth trend does not seem to have slowed down.

The origin of the encryption native concept can be traced back to Satoshi Nakamoto and Bitcoin. As the cornerstone of cryptocurrency, Bitcoin's underlying decentralization philosophy and trustless mechanism form the foundation of the encryption native concept.

Since the advent of Bitcoin in 2008, the first group of encryption native communities emerged in the world. These people believe in cryptographic algorithms and blockchain technology, and uphold the idea that "code is law." Over time, Bitcoin has been given the title of "digital gold," and its commodity attributes gradually surpassed its monetary attributes. The infrastructure of the encryption industry gradually improved during this period, including mining machines, payment scenarios, trading platforms, and financial derivatives.

The emergence of Ethereum in 2014 marked the beginning of a new era for the encryption industry. The concept of encryption native also expanded, not only including Bitcoin but also encompassing Ethereum and other cryptocurrencies. This community still firmly believes in the cryptocurrency system built on cryptography and blockchain technology.

With the development of the Ethereum ecosystem, people's imagination about public chain ecosystems has been fully realized. The emergence of new financing methods and decentralized applications has showcased the application value of blockchain. The development of on-chain financial derivatives has also contributed to the prosperity of centralized exchanges.

Since 2017, the term "native encryption" has become popular on social media. Some describe it as a new era and lifestyle, believing that encryption technology will quietly change people's lives. Others interpret it as a new way of operating a company, built on code and settled through blockchain, rather than the traditional legal system-based approach.

Encryption native is also defined as a business model. Some categorize it into encryption native individuals and encryption native businesses. The former refers to individuals who purchase cryptocurrency before owning any other assets, while the latter refers to decentralized protocols that support functions currently provided by centralized finance or traditional finance.

From 2020 to 2022, the rise of decentralized finance, non-fungible tokens, and gaming finance injected new vitality into the industry. However, the hype will eventually fade, and speculation will ultimately fail. When the tide goes out, all encryption natives need to reassess the fundamentals and intrinsic value of the industry and return to their original intentions.

The core concepts of encryption are decentralization, trustless mechanisms, permissionless access, and personal sovereignty. Decentralization means that there is no centralized authority for macro control. Trustless mechanisms provide a form of global cooperation based on rules rather than subjective commitments. Permissionless access means that anyone can freely enter the market, whether to provide resources or to consume them. Personal sovereignty emphasizes that the ownership of data and assets belongs to the users themselves.

The encryption native community believes that the technology of the encryption world can solve many problems in the real world. They are practicing the idea of decentralization, creating trustless products, and building permissionless markets to create a society that effectively protects individual sovereignty. This is the goal pursued by encryption native practitioners.