Crypto’s technical debt: 10 items on the backlog

3 days ago

The pursuing is simply a impermanent station from John deVadoss, Co-Founder of the InterWork Alliancez.

The crypto beingness is presently obsessed with generative AI, with the conception of “Agents,” putatively powered by crypto “rails” and coordinated via on-chain astute contracts. This is not a bully thought for the elemental crushed that 1 cannot physique “Agents” connected the stochastic quicksand that is simply a Large Language Model (LLM). LLMs person a relation to play with respect to the originative procreation of ideas and contented (e.g., code); however, the aforesaid creativity manifests via malicious latent behavior, i.e., deception. Caveat venditor.

It is besides successful vogue to sermon quantum computing—towards post-quantum encryption and “futureproofing” crypto protocols. Elliptic-curve cryptography, arsenic presently implemented, is simply a risk, yes; however, overmuch of the remaining aboveground country is astatine champion taxable to polynomial standard threats, and entree to quantum volition apt effect successful lifting each boats (e.g., Proof of Work becomes that overmuch harder for everyone). But present is the nub: real-world quantum computing is simply a fewer decades away. Hakuna Matata.

While we are distracted by these shiny caller objects, halfway plan priorities, choices, and trade-offs are accumulating rust and are astatine hazard of becoming “good enough” erstwhile they should beryllium aggressively reexamined. I database 10 of these below:

Social Consensus. If ever determination were an anachronism successful the crypto ecosystem, this conception of “Social Consensus” exemplifies it. Social Consensus is however alleged assemblage leaders tally their clans; it has nary spot successful a crypto protocol successful the twelvemonth 2025.
On-chain Governance. Following connected from societal consensus, what happened to on-chain governance? Too difficult? Did we conscionable springiness up? And yet, we judge we tin govern AI Agents on-chain?
Miner-extractable Value.Is it present acceptable that miners and artifact proposers tin siphon gross by manipulating however transactions are prioritized, excluded, rearranged, oregon altered successful the blocks?
The Oracle Problem. Has it present go accepted contented that the oracle occupation is an economical occupation and is nary longer a method problem? Is this collateral harm from the displacement to Proof of Stake? And isn’t this a slippery slope backmost to pseudo-centralization?
Centralized Stablecoins. Talking astir centralization—aren’t centralized stablecoins fundamentally CBDC-lite? Why the two-faced pushback connected (private) Central Banks erstwhile the wheels of crypto are greased by (private) centralized stablecoins?
Settlement Layers; and L1s vs L2s.There is nary specified happening arsenic a colony layer, and determination is nary specified happening arsenic an L1 vs. L2. Any concatenation (including alleged L1s and alt L1s) tin go an L2 of different concatenation by posting ledger information and deploying a span contract. We person to halt confusing ourselves and cleanable up the terminology.
Privacy. Somewhere on the way, we person mislaid the tone of the Cypherpunk and the imperative for privacy. Perhaps the conception of Privacy Pools is however crypto protocols volition yet equilibrium regulatory compliance and privacy. Fwiw, it volition beryllium a first-rate usage of zero-knowledge proofs.
Rollups. In applicable terms, Rollups done close are mini-blockchains. Unfortunately, they person flown mostly nether the radar and gotten distant with a big of issues—from multi-sig rug-pulls done to centralized sequencer MEV and CR, and each the mode successful between. We request a whole-scale clean-up of terminology and execution semantics regarding rollups.
Centralized staking and artifact building. With the mandate to determination to Proof of Stake, we are stuck with the expanding consolidation (centralization) of some staking and artifact building. Increasingly, this weakens censorship resistance, arsenic backstage bid flows dominate. This takes america backmost full-circle: whither permissionless and trustless? Or bash we not attraction arsenic agelong arsenic the fig goes up?
Public goods funding. Number goes up brings up the longer-term situation and question of backing nationalist goods. The accidental continues to beryllium beforehand and halfway for crypto protocols to play a unsocial and meaningful relation successful backing nationalist goods. We request to punctual ourselves that this is simply a high-priority backlog item.