Vitalik explains the four roles in the cryptocurrency ecosystem: Unraveling the mystery of motives and symbiosis

Ethereum co-founder Vitalik Buterin, as he approaches the age of 30, wrote "My Childhood Ended" to reflect on the changes in his life over the years. One chapter discusses four roles in the crypto field, where these roles may mock each other but also mutually benefit, and he believes that enhancing mutual understanding among these four roles is an ideal state of peace.

When you think about those you often debate with in the crypto space, which role or roles do you and they belong to?

The Complex Cryptocurrency World Weaves Idealism with Pragmatism

Vitalik believes that the landscape of blockchain and cryptocurrency is a complex tapestry, integrating diverse motivations and roles. It is where idealism meets pragmatism, and the future of decentralized technology is shaped by numerous contributors, with four roles coexisting symbiotically.

1. Token Holders and DeFi Enthusiasts: Financial Pillars

Token holders and DeFi enthusiasts form the financial bedrock of the crypto world. They play a significant role in funding innovation, pushing technologies from concepts to production, be it consensus algorithms or zero-knowledge proofs. Driven by profit, utility, and interest, their actions provide the financial impetus for the crypto machinery to operate.

2. Intellectuals: Ideological Compasses

Intellectuals are the thinkers and visionaries injecting meaning into the crypto space. They challenge the status quo, foster debates, and generate key ideas to ensure that the ecosystem is not just existing but meaningful. From academic researchers to Twitter commentators, they serve as the ideological compasses guiding the trajectory of blockchain technology.

3. Application Builders: Bridging Theory and Practice

Builders are the doers in the crypto field, transforming lofty ideas into tangible applications. The employees of blockchain companies and software engineering teams work tirelessly to build applications that not only serve users but also embody the idealistic visions of intellectuals. They are the crucial bridge that translates theory into practice.

4. Pragmatic Users: Core of the Ecosystem

The core of the ecosystem comprises pragmatic users. Often coming from lower-income backgrounds, they turn to crypto to meet needs mainstream systems fail to fulfill. Whether saving stablecoins, trading NFTs, or participating in Play-to-Earn platforms, their actions are driven by utility and necessity. They represent the people whom the ecosystem aims to serve and benefit.

Crypto Community Livelihoods: Detailed Symbiotic Relationships

While each group may have different motivations, they are closely interconnected, creating a complex web of interactions that can be harmonious or conflicting at times. The ecosystem is not without friction. Occasionally, actions driven by motivations may not be conducive to the collective interests of the community, such as when users inadvertently strengthen the network effects of extractive applications, or when intellectuals become overly enamored with theory at the expense of practical solutions.

From the symbiotic relationships in the diagram below, one can understand the balance between "want" and "need" for cryptocurrencies between "Token Holders and DeFi Enthusiasts" and "Pragmatic Users"; while between "Application Builders" and "Intellectuals," the balance lies in whether these applications are "closer" or "farther away" from users.

There are relationships among different roles that provide services and funding, as well as those that can create network effects, and relationships that guide direction with ideas and meaning.

Towards Mutual Understanding and Respect

Vitalik believes that to move towards a harmonious crypto ecosystem, fostering mutual understanding and curbing excessive behavior is essential. Recognizing the interdependence of each group can lead to a balanced coexistence. This is not just about peace within the crypto realm; it is about engaging with neighboring communities that share core values and future visions.