Net Neutrality Principle Keeps the Integrity of the Cryptocurrency Market
RegulationBit News Today3 min read
The Net Neutrality principle, which mandates that internet service providers (ISPs) treat all online traffic equally, has become an important pillar for the integrity of the cryptocurrency market, say experts.
The principle, which had faced several legal challenges in recent years, appears to be gaining more traction after a US appeals court upheld a ban on ISPs blocking or discriminating against lawful internet traffic.
Echoing the sentiments, Noah Perl, senior counsel at industry group Center for Democracy and Technology (CDT) told reporters, "Ensuring that ISPs treat all traffic equally is key to maintaining the integrity of online financial systems, including cryptocurrencies. Users must be able to trust that their transactions are being processed securely."
Cryptocurrency market experts say the threat to net neutrality was particularly worrisome because the decentralized nature of digital currencies means that the integrity of online transactions must be ensured by equal and unfettered access to the internet.
"In a free market, you need a level playing field where everyone can participate freely, without interference from middlemen," says Ava Sterling, blockchain developer. "The principle of net neutrality is especially critical for new entrants and startups, as they need a fair opportunity to reach and serve customers."
The threat to the net neutrality principle had gained significance as a result of the increasing concentration of power among ISPs, some of which were beginning to favor certain other digital asset providers. ## Why Net Neutrality Matters for Crypto
As cryptocurrencies have become more mainstream and some governments have announced plans to issue their own digital currencies, the need to protect net neutrality has intensified.
"The integrity of digital currencies, including those issued by central banks, hinges on online systems that are open to all users, not just those who can afford it," says Sterling. "Without net neutrality, central banks and regulators would face enormous challenges in protecting their new digital currencies from being stifled by powerful ISPs."
The net neutrality principle also matters for decentralized finance (DeFi) platforms, which are based on blockchain technology and smart contracts. Advocates argue that DeFi platforms allow more open and transparent financial services that are more accessible to the under-banked.
"The open internet is crucial for the growth of DeFi platforms," says Perl. "Any attempt by ISPs to prioritize or block traffic would have a negative impact on the ability of DeFi platforms to provide their services to all users equally."
Critics of the net neutrality principle, including the telecom industry, argue that the principle was not designed to protect online financial systems and that it could lead to stifling innovation in the sector. They also say that the principle should not apply to edge cases in the online world, such as specialized ISPs that offer services to the financial sector.
But opponents to the principle seem to be on a backfoot after a growing number of ISPs have begun to set up specialized projects which could cater to the financial sector but not the crypto market. ## End of Threat to Crypto?
While the threat to the net neutrality principle is not over, cryptocurrency experts say the repeated affirmation of its importance has been a win for the decentralized nature of digital currencies.
"Overall, the idea that the internet should be open to all has been given a major boost," says Sterling. "That's good for the growth of cryptocurrencies, decentralized financial services and anyone who wants a digital world that is fair and level for all."
