The cryptocurrency industry is once again facing questions about one of its core promises: decentralization.
Charles Hoskinson recently revisited a widely discussed essay by Moxie Marlinspike, renewing debate over whether Web3 systems are as independent from centralized control as the industry claims.
Hoskinson argued that while blockchain networks themselves may be decentralized, most users still depend on a small number of companies and platforms to access them.
“People don’t want to run their own servers… and they never will,” Marlinspike wrote, challenging one of the foundational assumptions behind Web3.
Centralized Services Still Power Much of Web3
Although blockchain networks operate without a central authority, many users access them through companies such as Infura and Alchemy, which provide infrastructure and data services.
Marlinspike argued that users often trust these intermediaries rather than independently verifying blockchain data.
“So much work has gone into trustless systems… but clients just trust these companies.”
The criticism highlights a gap between the decentralized design of blockchain networks and the centralized services that support day-to-day use.
NFT Ownership Faces Questions
Marlinspike’s essay also raised concerns about how non-fungible tokens, or NFTs, function in practice.
Many NFTs do not store images or media directly on a blockchain. Instead, they link to content hosted on external servers, meaning the material can potentially be changed or removed.
In one experiment, Marlinspike created an NFT that displayed different content depending on where it was viewed. When the item was removed from an online marketplace, it also disappeared from digital wallets.
“What you bid on isn’t what you get,” he said.
The example raised broader questions about ownership when access to digital assets depends on centralized platforms.
Slow Blockchain Systems Compared With Platforms
Marlinspike also argued that decentralized systems tend to evolve more slowly than centralized technology platforms.
He compared older internet systems such as email with modern apps that rapidly add features and update services.
“Protocols move much more slowly than platforms.”
According to Marlinspike, much of the innovation in Web3 is happening through off-chain services rather than on the blockchain itself.
Hoskinson Says Infrastructure and Regulation Are Key
Hoskinson agreed with many of the criticisms and said the industry failed to fully decentralize the infrastructure surrounding blockchain networks.
“We said users would run everything… but we didn’t finish the job,” he said.
He argued that stronger infrastructure and clearer regulation are needed for the sector to grow beyond its current limitations.
Hoskinson also raised concerns about government-linked cryptocurrency projects and political involvement in digital assets, saying the lack of clear rules has delayed broader adoption.
He pointed to proposed U.S. legislation such as the CLARITY Act as an important step toward defining how the industry should operate.
According to Hoskinson, uncertainty around regulation continues to limit institutional investment and slows infrastructure development.
He said clearer rules could encourage larger inflows of institutional capital, improve investment in crypto infrastructure and support a more stable market structure.
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