How Important is Transparency in the Blockchain Age?

What does transparency mean in the cryptocurrency space today?

Invariably, transparency requires that users themselves do their own research and due diligence to find out more about projects and the teams behind them.

However, how do you teach newcomers what to look for so that they know the difference between real transparency and what at the surface seems like transparency?

Oftentimes it’s easier to draw comparisons between two knowns rather than two unknowns. Essentially, there needs to be a model in the space for what transparency in a project is and what it means.

Cardano has moved headfirst in this direction since it released its first whitepaper.

However, for every Cardano you see a hundred other projects that lack transparency or are otherwise a counterproductive force in the space.

In the case of IOTA, we see a strong community and tremendous potential yet it’s baffling to see them demonize MIT the moment any chink in its armor is exposed.

Such outbursts serve the purpose of polarizing the community from the very minds that could inject the space with a tremendous amount of insight and creativity,

Furthermore, these incidents make it even harder for newcomers to the space to understand what the community is all about and what their role should be.

Presenting a good face will increasingly become a focal point as many still think of Bitcoin as “that thing that you buy drugs and guns with on the internet”. As an increasing number of these newcomers start to settle into the community - it will become even more important to set the tone for how to interact with “outsiders”.

Perhaps this is why Cardano is placing such an emphasis on transparency.

Knowing that there is much less to be gained from an “Us vs Them” mentality, the lack of leadership in the community itself poses a threat to the future of cryptocurrency’s reception in the years to come. It’s encouraging that some have decided to step up to this challenge.

But Cardano is far from perfect. IOHK’s founder, Charles Hoskinson is still remembered for his public apology regarding Ethereum Classic and the inflation of that currency’s value due to the implementation of a new treasury model (a model similar to the one Cardano proposes to run itself).

But amid the FUD, we forget that Charles did admit he was wrong and offer an apology. Many others, who will remain nameless, opt instead to lurk in the shadows rather than admit fault. Not to mention the ability to admit when you’re wrong is another core tenant of leadership. This is another trait severely lacking in the space, as mentioned previously.

The time is ripe for projects to take a more proactive role in their sense of responsibility as representatives of the space. Due to the general public’s rampant skepticism as well as the tendency for FUD to spread as fast, or faster, than bad news - Cardano is head and shoulders above the competition in terms of transparency.

While this doesn’t absolve newcomers to the space of their responsibility in doing their own homework on projects, it does set an example of a new way of doing business that has the potential to profoundly affect the entire community for the better.