The Disconnect in the Crypto Revolution: Bridging the Gap for Real-World Impact

The Promise of Blockchain Technology

Recently, I had a conversation with a young blockchain entrepreneur at a café in Warsaw during the Onchain Economy Conference. He was excitedly sharing his latest achievement: integrating zk-rollups with dynamic wallet composability across 20 different blockchain networks to enhance global financial inclusion. While I appreciated his enthusiasm, my immediate thought was, “Can everyday people, like your aunt in Tel Aviv, actually use this to buy something as simple as falafel?”

The Reality of Crypto’s Potential

The reality of the cryptocurrency movement is both impressive and frustrating. Blockchain technology is undoubtedly one of the most transformative innovations since the advent of the Internet, with the potential to redefine money, identity, governance, and ownership. However, we find ourselves in a peculiar situation where the technical advancements are remarkable, yet the practical benefits for users often feel inadequate, reminiscent of a failed crowdfunding campaign.

A Closer Look at Global Usage

To illustrate this disconnect, consider Nigeria, where over 2.7 million individuals hold approximately $198 million in cryptocurrency, yet they struggle to use it for basic purchases, such as a subscription to ChatGPT. In Ghana, 65,000 users possess $7 million in crypto, but attempting to pay for Twitter Premium with stablecoins is nearly impossible.

A Moral Shortcoming in Design

This issue is not merely a technical oversight; it reflects a deeper moral failing. The crypto industry promised to “bank the unbanked,” yet many developers have created wallets so complex that they require advanced degrees to navigate. They have built payment systems that overlook the very individuals who need them most, all while discussing “financial inclusion” from luxurious rooftop bars in Miami.

The Need for Practical Solutions

The unbanked population doesn’t require elaborate presentations; they need functional payment systems, affordable off-ramps, and user-friendly wallets that resemble Venmo rather than advanced physics.

Innovations Driving Change

Take Polygon, for instance—a project focused on making Ethereum more scalable and cost-effective. Through strategic partnerships with companies like Addressable, they are pioneering a new metric called Cost Per Wallet (CPW), which connects marketing investments to actual wallet creation, rather than superficial engagement metrics. This innovative approach could align interests across growth, utility, and cost in the Web3 landscape.

Emerging User Engagement Trends

Recent findings from Dune Analytics indicate that a significant portion of engaged crypto users—those actively participating in DeFi, NFTs, and governance—are concentrated within specific protocol ecosystems like Marinade Finance on Solana. This suggests that users are not merely speculating on tokens; they are actively participating in the digital economy, akin to citizens rather than mere tourists.

The Path Forward: Empathy in Development

The next phase of crypto innovation lies in creating community-driven, protocol-first ecosystems designed by users. The primary barrier to this evolution is not regulatory issues, scalability, or user experience; it is a lack of empathy. Many developers are focused on optimizing returns on U.S. treasury yields while entire regions are in desperate need of straightforward, reliable payment solutions.

A Call to Action for 2025

I propose that we make 2025 the year of the Crypto Realists. It’s time to move beyond superficial fintech portrayals and focus on tangible solutions for real-world problems. Let’s prioritize metrics like CPW, conversion rates in cities like Lagos, and user retention in Manila. Each wallet should be viewed not merely as an address but as an individual with unique needs.

The True Promise of Cryptocurrency

The future of cryptocurrency does not lie in fragmenting Ethereum into countless threads. Instead, it should empower individuals, such as a mother in Kampala, to pay for her child’s education without relying on peer-to-peer merchants or incurring exorbitant transaction fees. This is the genuine promise of cryptocurrency—the real return on investment. It’s time to stop pretending to be financial revolutionaries and start delivering on that promise.

The author is a professor of Business and Economics at Ariel University, specializing in international economics and cryptocurrencies.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.