30s Summary

Ethereum founder Vitalik Buterin and MicroStrategy head Michael Saylor debate over the better way to hold cryptocurrencies. While Saylor advocates for their control by regulated bodies, Buterin supports the self-custody concept. However, existing wallets make managing this difficult due to their complexity and number, making it easier to make mistakes. Nevertheless, the future might involve a unified account for all crypto assets, simulating how Apple Pay operates. Even as we can’t revert the fragmentation of Web3 systems, there’s optimism for more user-friendly and interoperable systems.

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In a recent conversation, Ethereum founder Vitalik Buterin wasn’t happy with MicroStrategy boss Michael Saylor’s views on crypto’s taking care of itself. Saylor reckons crypto works better when it’s held by official, regulated bodies. Of course, this goes against the whole idea of letting crypto be its own thing, which Vitalik thinks is better.

Saylor says that moving Bitcoin into the hands of regulated bodies like BlackRock and Fidelity lends it a level of trust and protection you might not get if you look after crypto yourself. But others are not having it – they argue that relying on a third party to look after your crypto actually makes it more vulnerable.

Vitalik and Saylor don’t see eye-to-eye here, but a solution could be on the horizon – multichain self-custody wallets.

Self-custody means you’re in charge of your own stuff. It can be a lot to handle, particularly if you’re new to the world of crypto. But things are improving. With options like Farcaster and Passkeys, managing your crypto is no longer a total headache.

Vitalik reckons self-custody still has a future. The thing is, users still need to manage different types of wallets for different types of transactions.

The challenge is that there are too many wallets across too many different chains. This leads to a complex, messy system that’s fraught with risks – just imagine sending your money to the wrong address by mistake.

In just the first half of 2024 alone, over 70 new layer 1s were created, bringing the cumulative total to nearly 50 for the previous year. If anything, this means that managing your crypto only gets more challenging.

This disjointed arrangement affects the flow of crypto and how well it works. Users are supposed to be able to use their assets efficiently, but this is hard to do when their assets are spread across multiple wallets and blockchains.

With all that said, we need to address these problems if we’re to have a friendlier, more easy-to-use web.

This new approach can simplify how we manage crypto in the same way Apple Pay has done for regular payments. You’ll be able to see all your assets in one place and transact with them smoothly and easily.

So, what’s next for the future of self-custody in crypto? Distilled down, both Saylor’s and Vitalik’s thoughts seem to lean toward the idea of a single, unified account for all types of crypto asset owners.

Saylor thinks holding crypto is a good idea for the folks that are up for it. With a multichain approach, it seems more and more people might just be. Self-custody is certainly making strides and we’re likely to see a future with crypto systems that are more friendly and interoperable.

For now, one thing is for certain – we cannot reverse the fragmented nature of Web3 systems. Just like evolution, we have to keep moving forward, making these systems easier to use and more efficient.