A nationwide internet shutdown in Afghanistan has rattled proponents of blockchain technology, sparking new conversations on improved decentralization and the dangers of relying on centralized internet providers.
According to an X post by Proton, Afghanistan suffered a major internet blackout that lasted for nearly 48 hours at the tail end of September. At the time, major outlets reported that the ruling Taliban administration ordered the internet shutdown amid claims of censorship and freedom of speech violations.
However, a Taliban spokesperson blamed the nationwide internet disruption on “technical issues” affecting fiber optic cables. While the government cites technical difficulties for the latest outage, Afghan officials have previously limited internet access to stifle “immoral behavior” across the country.
Still reeling from the shock of a 48-hour internet outage, blockchain experts are making a case for a pivot from centralized internet providers. Roam Network Co-Founder Michail Angelov noted that relying on mainstream internet service providers will limit the functionalities of DLT systems during blackouts.
“The Afghanistan blackout is not just a regional connectivity crisis: It is a wake-up call,” said Angelov. “When connectivity is monopolized by a handful of centralized providers, the promise of blockchain can collapse overnight.”
Angelov is advocating for a significant shift to decentralized wireless networks as an alternative to traditional centralized internet providers. Coming under the decentralized physical infrastructure network (DePIN) vertical, decentralized wireless networks have gained significant steam in recent months, powered by the trio of Roam, World Mobile, and Helium.
Angelov’s Roam is focused on building a smartphone-powered, decentralized wireless network that crowdsources mobile signal measurements to track connectivity levels. Meanwhile, World Mobile and Helium have racked up a combined 3.6 million daily users on their networks, incentivizing users to host a hotspot with virtual currencies.
“If decentralization stops at the protocol layer, we haven’t really solved the problem — we’ve just shifted where the control lies,” added Angelov.
Outages threaten Web3’s global adoption
Apart from Afghanistan, Iranian citizens have had their own fair share of internet blackouts since the start of the conflict with Israel. In June, Iranian authorities shut down internet access for nearly two weeks, allowing access only to domestic messaging apps.
Digital asset allocations among owners and managers surge to new peaks: report
Meanwhile, 6% of asset managers reported holdings in smaller-cap digital assets, including memecoins and non-fungible tokens (NFTs), with only 1% of owners expressing interest. Both demographics have displayed an affinity for real-world asset tokenization-related exposures in their portfolios.
Furthermore, the report noted that stablecoins and tokenized real-world assets comprise the largest component of respondents’ digital asset allocations. Despite holding the largest share, the bulk of returns are from digital assets like BTC, Ethereum, and other small-cap tokens.
State Street’s report anticipate the trend to continue until the end of the decade, with digital assets nearly doubling their valuations since the start of the year. 27% of respondents disclosed that BTC created their highest return, while 21% pointed to Ethereum as their most profitable asset.
However, only 13% of surveyed investors noted that their digital assets’ returns came from tokenized public assets. Meanwhile, 10% revealed that tokenized private assets made up the lion’s share of their portfolio’s returns.
The surveyed respondents disclosed that AUM exposure to digital assets will more than double within three years to 16%. Investors are still tipping BTC to provide the biggest returns by 2029, while a significant portion are forecasting Ethereum to lead the charge.
“Our research shows that the industry is already embracing digital assets in all their crypto, cash, and tokenized mainstream asset class incarnations,” read the report. “Furthermore, they see these assets as a growing part of their portfolios.”
While institutional investors have demonstrated a significant interest in digital assets, experts have highlighted a rising appetite among retail investors. A new study pointed out that 1 in 4 South Koreans own digital assets, with Gen Zs and Millennials driving adoption metrics in the country.
Another study revealed that artificial intelligence (AI) and digital payments are driving the adoption of digital assets worldwide. Others are pointing to speculative use cases, while a cross-section is highlighting its capability in improving financial inclusivity metrics.
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