Exploring the True Meaning of "Encryption Native"

With the rapid development of the encryption currency industry, the concept of "encryption native" has gradually attracted widespread attention. Since 2021, this term has frequently appeared in the industry, and almost everyone new to the field is familiar with it. However, even some seasoned practitioners may find it difficult to provide a clear definition of its exact meaning. So, what does encryption native actually represent? Does it simply mean paying attention to encryption currency news every day, investing most assets in Bitcoin or Ethereum, closely monitoring market trends, or frequently using terms like "decentralized"?

In fact, the inherent meaning of encryption may be richer and deeper than these appearances.

Through a comprehensive search of data across the internet, it can be found that the mention frequency of the term "encryption native" shows a significant upward trend. Compared to the previous year, it increased by 5.57 times in 2018, 7.52 times in 2021, and has already increased by 2.85 times in the first 11 months of 2022. This exponential growth trend indicates that the industry's interest in this concept is continuing to heat up.

encryption native development history

The concept of "crypto-native" in the encryption world originates from the decentralized philosophy advocated by Satoshi Nakamoto and Bitcoin. As the cornerstone of cryptocurrency, the decentralized ideology and trustless mechanism behind Bitcoin form the foundation of crypto-native thought.

Since the advent of Bitcoin in 2008, the first true native encryption community has emerged. These early participants believed in cryptographic algorithms and blockchain technology, adhering to the principle of "code is law." At that time, native encryption primarily referred to those who believed in cryptographic algorithms and actually held and used Bitcoin.

As time went by, Bitcoin gradually earned the title of "digital gold," and its commodity attributes began to stand out. The influx of substantial funds and talent has driven the improvement of the encryption industry's infrastructure, including mining machines, payment systems, trading platforms, and financial derivatives.

In 2014, the birth of Ethereum brought new changes to the encryption industry. The emergence of smart contracts has expanded the realm of encryption beyond Bitcoin to a broader field of encrypted assets. This community still firmly believes in the cryptocurrency system built on cryptography and blockchain technology.

The development of the Ethereum ecosystem has sparked endless imagination about the public chain ecosystem. The rise of the ICO financing model and the emergence of a large number of decentralized applications showcase the immense application potential of blockchain technology. The appearance of on-chain financial derivatives has also promoted the prosperous development of centralized exchanges.

Since 2017, the term "encryption native" has started to appear frequently on social media. Initially, it was mainly used to describe young entrepreneurs engaged in cryptocurrency-related projects. This group is considered to be more adaptable to new lifestyles and ways of thinking, able to quickly integrate into the world of encryption.

As time goes by, the connotation of encryption continues to expand. Some view it as a new era and lifestyle, believing that encryption technology will silently change people's daily lives. Others understand it as a new way of operating companies, emphasizing the construction and management of organizations through code rather than traditional laws.

By 2020, some began to define encryption-native from both personal and commercial perspectives. Encryption-native individuals are described as those who hold cryptocurrency before purchasing any traditional assets. Encryption-native businesses are understood as decentralized protocols that support traditional financial or centralized financial functions.

From 2020 to 2022, the rise of DeFi, NFTs, and GameFi injected new vitality into the encryption industry, bringing unprecedented innovation and valuation. However, as the craze subsides, the crypto native community needs to reevaluate the fundamentals and intrinsic value of the industry, returning to its roots.

encryption native core concept

1. Decentralization: In contrast to centralization, encryption natively emphasizes the absence of a single entity controlling the entire system. For example, the decentralized nature of the Bitcoin network allows it to resist control by individuals, companies, or governments.

2. Trustless Mechanism: Encryption natively advocates for the establishment of a system that does not rely on traditional trust mechanisms. This mechanism is based on objective mathematics and cryptographic proofs, rather than subjective promises or trusted entities.

3. No permission required: Encryption natively emphasizes the openness of the market, allowing anyone to freely participate and contribute. This characteristic is particularly evident in Web3 infrastructure, where both resource providers and consumers can freely enter the market.

4. Personal Sovereignty: Encryption natively emphasizes individuals' control over their own data and assets. In the Web3 era, users have ownership of their own data, which possesses a certain degree of censorship resistance.

Nowadays, more and more people are beginning to pay attention to how to tell the story of encryption currency well, how to break the shackles of traditional centralized systems, and how to build a more free and equal world. The encryption native community believes that encryption technology has the potential to solve many deeply rooted problems in the real world. They are practicing the idea of decentralization, developing trustless products, and building permissionless markets, with the ultimate goal of creating a society that truly protects personal sovereignty. This is precisely the vision that encryption native practitioners are pursuing.