Dominic Williams, the Chief Scientist and founder of Dfinity Foundation, doesn’t mince words when discussing the state of the crypto and blockchain industry, an arena he’s been immersed in for close to a decade.
In a recent conversation with The Block, Williams expressed his concern over the rampant investment in what he terms as “snake oil” within the industry. He observes a trend where investors prioritize flashy marketing over substance, leading to widespread confusion and misguided investments. Williams, whose organization is behind the Internet Computer Protocol (ICP), a project that garnered significant attention in the blockchain space after raising $195 million from notable backers like Andreessen Horowitz and Polychain Capital, is critical of the industry’s current landscape.
While he holds his team at Dfinity Foundation in high esteem, citing their extensive research and development experience spanning “1,000 years,” Williams is less complimentary about other blockchain projects. He asserts that a substantial portion of existing blockchains, approximately 95%, are essentially worthless and peddle false promises.
Williams highlights the distinction between traditional blockchains like Bitcoin and Ethereum, which he acknowledges for their transaction processing capabilities, and what he perceives as the next evolutionary step, the Internet Computer Protocol. He argues that only third-generation blockchains like ICP have the potential to power a truly decentralized internet capable of handling online interactions entirely on-chain.
He illustrates the inefficiency of current web3 platforms by comparing the cost and time required to perform basic tasks like uploading a photograph. Williams emphasizes the need for blockchains to address the “trilemma” of decentralization, security, and scalability, a challenge he believes the Internet Computer Protocol has overcome.
Despite the technical advancements claimed by Internet Computer, the protocol has faced its share of setbacks, notably delays in its launch timeline. However, Williams remains optimistic about its long-term prospects, envisioning it as the primary computing platform for software development and the open internet in the future.
While the ICP token initially experienced a surge in value post-launch, reaching over $400 with a market cap exceeding $18 billion, its price subsequently declined. Nonetheless, there have been signs of recovery, indicating ongoing interest and potential in the project.
