South Korean court issued a warrant to arrest Terra co-founder Do Kwon, will this change the crypto space in the future?

I think it will hardly change even though Do Kwon was in charge of fraud under the security law in South Korea.

Here is why:

Team Integrity

Open source projects do not mean open law projects. The project provides individual freedom in certain aspects, but the team who created such projects has their accountability behind the project. What makes those team members accountable?

There has no way to validate the team's integrity, but it solely depends on the person who kept themselves accountable.

Revealing your identity does not help the team on the accountability but increases a little hope from people who wants to join the project and support them.

We still have no history of understanding what kind of teams are behind the project and how we can protect ourselves from when the scheme collapses unexpectedly.

Co-founders of a project can still walk away freely without explaining why their project collapsed. Investors may never be satisfied on their losses to be compensated in the future if possible.

Because the original intent from investors is to make a project impactful for society and put their hope into the project, how can law provide the loss of hope?

Decentralization

There is no way any centralization can provide any compensation for the hope, and punishing individuals may only have a temporary warning effect in the crypto space. Yet, scams and rug-pulling continue in the space.

People will continue losing money in the crypto projects they later got scammed from.

Only true decentralization can help and prevent all troubles bad actors made in the crypto.

One who wants to enter and join into crypto should genuinely understand what decentralization means to you and identify true decentralization before entering any project funding support or spending your hard-earned money.

True Decentralization

Here are 3 conditions of true decentralization:

1. a mechanism to prevent central figurehead
2. a mechanism to validate everything is true
3. a mechanism to prevent duplication

You will have to pass these 3 tests to get true decentralization.

Otherwise, every crypto project is a potential risk of failing into a single-point failure - a catastrophic event to collapse the project entirely.

Bitcoin is a nearly true decentralization, except they closely validate everything is true.

Ethereum, on the other hand, is centralized because it fails the first test.

Ethereum 2.0 improves its decentralization a little more.

In conclusion

Decentralization is a key to making crypto sustainable.

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Photo by Wesley Mc Lachlan

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