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A Stronger Web 3.0 Means (Strategically) Working With Centralized Entities

A Stronger Web 3.0 Means (Strategically) Working With Centralized Entities

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The crypto industry is unlike any other space for many reasons. But perhaps the primary difference between crypto and Web 3.0 in general and mainstream tech or the auto industry, for example, is removing dependency on centralized, trusted authorities.

From DAOs and DEXs to DApps, DeFi (decentralized finance) is an irreplaceable tenet of crypto and blockchain and therefore Web 3.0.

Now that traditional financial institutions the polar opposite of decentralized organizations seek exposure to crypto and DeFi, the industry is at a fork in the road.

Many industry voices recognize this interest in crypto as an amazing growth opportunity and can find room for compromise, while decentralization purists or ‘degens’ take a more hardline approach.

But with TradFi (traditional finance) and centralized entities creeping into Web 3.0, how can the industry maintain growth while safeguarding its core principles?

Collaboration over isolation

As we witness more partnerships and collaborations between blockchain protocols or Web 3.0 organizations with mainstream finance or other centralized entities, both sides still hold some reservations.

While TradFi wants to leverage blockchain technology to offer tokenized RWAs (real-world assets) and provide clients exposure to DeFi and top-performing tokens, there are legitimate compliance concerns alongside sizable industry sentiment that crypto is run by scammers.

On the other hand, a vocal minority of crypto enthusiasts see any outside participation by a centralized authority as an existential threat and as betraying the industry’s ethos.

However, both sides need a different perspective on the inevitable overlapping of digital and traditional assets.

Just because two entities are fundamentally opposed on almost every matter doesn’t mean they can’t find common ground when it’s mutually beneficial.

Take, for example, today’s top global superpowers – the US and China.

These two international heavyweights are economic, political and ideological rivals, but that doesn’t prevent them from collaborating in areas such as trade and scientific research if it serves their national interests.

Between decentralization purists, speculators and idealistic builders who hold major sway over the industry’s future, they must acknowledge that the ultimate shared goal of the Web 3.0 movement is to facilitate growth and adoption.

Achieving this goal requires…

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