Sergey Nazarov, the creator of Chainlink, recently shared his thoughts on the potential for mass adoption of cryptocurrencies, particularly in the context of a failing banking system.
Sergey Nazarov is best known as the co-founder of Chainlink Labs, where he has spent nearly four years helping to develop hybrid smart contracts. Before Chainlink, he co-founded SmartContract, a company that connects smart contracts to external data and bank payments. Nazarov also had a role in Secure Asset Exchange, a decentralized platform for real-time revenue sharing. Additionally, he was a General Partner at QED Capital, focusing on venture capital for tech teams in Russia and Eastern Europe. With experience in both venture capital and blockchain technology, Nazarov is a significant player in the cryptocurrency and smart contract sectors.
According to a report by The Daily Hodl, in a recent interview on the Bankless podcast, Nazarov outlined two possible scenarios that could unfold for the crypto and blockchain sectors over the next decade.
Nazarov presented two contrasting scenarios for the future of crypto. The first, which he calls the “slow case,” involves the crypto industry and its underlying technology continues to grow at their current pace. This gradual growth would slowly siphon value away from the traditional financial system.
The second scenario, termed the “fast case” by Nazarov, is more dramatic. It envisions a rapid collapse of the traditional financial system, leading to widespread financial distress. This would force people to acknowledge the advantages of cryptographic money systems that offer verifiable transactions.
In Nazarov’s “fast case” scenario, the collapse would be so severe that it couldn’t be mitigated by government intervention. Such a collapse would result in significant financial hardship for society, increased political tension, and international issues. Nazarov argues that this would make people realize the fragility of existing financial systems and make a cryptographically secure world highly appealing.
He further elaborates that any entity not offering cryptographic guarantees for economic transactions would be at a disadvantage in such a world. According to Nazarov, not being part of this “verifiable web” would be akin to not being on the internet.
Even if the “slow case” scenario plays out, Nazarov believes that the crypto industry is on a trajectory toward a $10 trillion market cap. He suggests that this path was set when the industry crossed the $200 billion mark.