The blockchain and cryptocurrency industry is yet to reach maturity until its regulators can read and audit code, according to Ava Labs CEO and founder Emin Gün Sirer. Speaking at the annual Cornell Blockchain conference, Gün Sirer stated that regulators are currently far from being able to do so, and are preoccupied with other matters. Cryptocurrency, particularly in the US, is under the scrutiny of regulators following the collapse of the FTX exchange and other related incidents in 2022. However, even the most severe clampdowns will not eradicate cryptocurrency, Gün Sirer noted. As he said, “Generation Z is digital-first, and they will not allow this technology to go away. They have seen how amazing these new rails can be.”
Gün Sirer identified several areas that require improvement in order to bring the next billion users into the cryptocurrency space, including scalability, ease of use, and adaptability. However, when asked about the potential of zero-knowledge proofs (ZKP) to reach that scale, he expressed skepticism. Gün Sirer referred to such technologies as “Godot” solutions, named after Samuel Beckett’s absurdist play “Waiting for Godot,” in which the main characters are constantly waiting for something that never arrives. “If something doesn’t work today, there is usually a very good reason for that,” he said. “ZKPs are fantastic tech but for scalability they are completely unproven. I have friends who are working on this, and I wish them the best. But if it does work, the latency will always be greater, and I worry about the user experience.”
The cryptocurrency industry has faced numerous challenges in recent years, including regulatory crackdowns, market volatility, and security breaches. However, it has continued to grow in popularity among investors and consumers alike. In order to continue its growth trajectory, the industry needs to address its scalability issues, according to Gün Sirer. He believes that the industry needs to focus on creating solutions that are both user-friendly and adaptable to different use cases. As he stated, “We need to make sure that the technology is usable by everyone, not just the tech-savvy. And we need to create solutions that can be used in a variety of different contexts, from finance to healthcare to social media.”
Despite the challenges facing the cryptocurrency industry, Gün Sirer remains optimistic about its future. He believes that the industry has the potential to revolutionize the way we think about money and finance, and that it will continue to attract new users and investors in the years to come. As he stated, “Cryptocurrency is still in its infancy, but it has already achieved so much. I can’t wait to see what the future holds.”
