Charles Hoskinson Keynote at Paris Blockchain Week 2025: Fourth Generation of Cryptocurrencies

Summary

The speaker discusses the transformative potential of blockchain technology and the importance of decentralization within the crypto industry. They emphasize the need for a system that prioritizes inclusivity, stability, and fairness, steering away from centralized control by large institutions. Highlighting the project’s testnet release and the decision to give it away rather than conducting an ICO, the speaker advocates for a finance system that works for everyone, ensuring transparency and predictable rules. The message centers around the vision of empowering the masses and creating a more decentralized and sustainable future in finance.

Takeaways

• 😀 Crypto is at an inflection point, with a critical choice: who controls it? Will it be decentralized, or will a few centralized players dominate?
• 😀 The rise of decentralized finance (DeFi) emerged as a response to global economic instability, including crises like the 2008 financial crash.
• 😀 First-generation crypto (Bitcoin) focuses on decentralized value transfer, while second-generation (Ethereum) introduced programmable smart contracts.
• 😀 Third-generation blockchains prioritize scalability, interoperability, and governance to enable a more efficient decentralized system.
• 😀 The fourth generation of crypto aims to enhance privacy, identity, and integration between traditional finance (TradiFi) and decentralized systems.
• 😀 Current blockchain networks often operate in isolation, leading to a fragmented industry where cooperation is essential for growth.
• 😀 Future success in crypto depends on cooperation among networks rather than competition (e.g., 'Ethereum killers' or 'Solana killers').
• 😀 Big companies like Apple and Microsoft entering the crypto space could create new challenges and force the industry to adapt.
• 😀 *Midnight* is a project focused on integrating multiple consensus mechanisms to enable privacy and cross-network functionality in blockchain ecosystems.
• 😀 The speaker urges the community to embrace a cooperative, inclusive approach, which will help decentralize finance and create a stable, predictable financial future.
• 😀 The blockchain industry is here to stay, and the future of crypto will depend on broad adoption, inter-network cooperation, and technological innovation.

Q & A

What is the main goal of the speaker's project?

The main goal is to create a decentralized ecosystem that empowers individuals, where people can freely build and innovate without central control, enabling them to participate in the financial system.

Why does the speaker emphasize decentralization?

Decentralization is seen as essential for ensuring control remains in the hands of the masses rather than being centralized with a small group of exchanges and venture capitalists. This allows the system to be more democratic and fair.

What does the speaker believe will happen if decentralization is not achieved?

If decentralization is not achieved, the speaker fears the crypto industry could become a tightly centralized system controlled by a few large entities, leading to reduced innovation and fairness.

How does the speaker view the future of crypto?

The speaker believes that crypto is here to stay, but the key question is who will control it—whether it will be controlled by individuals, the masses, or a small group of centralized entities.

What is the significance of the test net mentioned in the script?

The test net is an early version of the platform that allows developers and users to start building and experimenting. It was released without an ICO to encourage open usage and contributions.

What is the speaker's stance on Initial Coin Offerings (ICOs)?

The speaker chose not to do an ICO or sell tokens, believing that giving away the platform for free would encourage more people to use it, rather than focusing on financial gain.

What is the role of Midnight and Iron Barack in this project?

Iron Barack is introduced as the CEO of Midnight, the company behind the project. The speaker refers to Midnight's product team as well, emphasizing that they are responsible for the platform's development and testing.

Why does the speaker think the current financial system is flawed?

The speaker points out that the current financial system operates unpredictably, with rules that change unexpectedly depending on leadership. This instability hinders trust and fairness in finance.

What is the ultimate vision of the speaker for the financial industry?

The speaker envisions a financial world that is stable, transparent, and predictable—where decentralized finance (DeFi) is integrated into a functioning system that works for everyone.

What is the significance of the location and the conference in the speaker’s message?

The speaker is at a conference in Paris, a large event with around 10,000 people. The location is used to highlight the scale of the event and the opportunity for networking, reinforcing the global importance of the project.