Native Token - From Crypto Native Concept to Web3 Practice

Native token is not just a marketing term but a symbol of a global mindset movement around blockchain and cryptocurrency. Crypto Native, also known as “cryptocurrency natives,” refers to individuals and businesses formed from a decentralized way of thinking, trustless principles, and cryptographic technology. To understand native tokens and their deeper meaning, we need to explore the development journey of this concept.

What Is a Native Token - Understanding Crypto Native

Crypto Native, in the context of cryptocurrencies, is a direct inheritance of the ideas of decentralization and independence from Bitcoin. Native tokens here are not merely digital currencies but a system of thinking and action based on fundamental principles: code is law, blockchain is the platform, and cryptographic technology is the overseer.

Since Satoshi Nakamoto introduced Bitcoin in 2008, the world has witnessed the emergence of the first Crypto Native group—those who trust cryptographic algorithms more than centralized entities. They not only own Bitcoin but also support the entire philosophy behind it.

Interest in Crypto Native has grown exponentially. According to data from Meltwater, search mentions of this concept on the web increased 5.57 times in 2018 compared to the previous year, continued to rise 7.52 times in 2021, and 2.85 times in 2022. This growth trend shows that native tokens and Crypto Native are increasingly becoming focal points of industry discussions.

The Development History of Crypto Native - From Bitcoin to DeFi Ecosystem

Phase 1: Bitcoin Foundation (2008-2014)

Native tokens began with Bitcoin—a revolutionary innovation bringing a new way to manage finance. The Bitcoin network operates based on trustless mechanisms, where algorithms and cryptography replace the roles of central banks. The first Crypto Native group believed that blockchain technology was not just a tool but a foundation for a freer world.

Although Bitcoin experienced severe price crashes (such as the Mentougou coin theft and the collapse after 2011), the Crypto Native community remained steadfast. During this period, infrastructure for the cryptocurrency industry gradually formed—mining rigs, exchanges, and derivative financial tools started to develop.

Phase 2: The Explosion of Ethereum and Smart Contracts (2014 Onward)

A pivotal moment occurred when Vitalik Buterin published the Ethereum white paper in 2014 and conducted an ETH pre-sale in July of the same year. Ethereum Virtual Machine (EVM) and smart contracts emerged, opening a new era for Crypto Native.

With the growth of the Ethereum ecosystem, the concept of native tokens expanded beyond Bitcoin. Not only Bitcoin but also Ethereum and other tokens were held by the Crypto Native community. However, the fundamental difference still exists—that is, trust in cryptographic technology and blockchain.

From 2017 onward, Jessica Verrilli first used the term “Crypto Native” on Twitter (October 26, 2017) to describe startup university students in the cryptocurrency field. This marked the birth of a new “internet native” generation—those who grew up with blockchain technology and decentralized thinking.

Phase 3: The Development of DeFi, NFT, and GameFi (2020-2022)

From 2020 to 2022, the concept of native tokens reached a new level as DeFi, NFT, and GameFi exploded. Countless projects emerged, giving the cryptocurrency industry a powerful “stimulus shot.” The crypto industry has never had such high imagination and valuation.

However, bubbles eventually burst, and speculative activities waned. But through these ups and downs, Crypto Native remained committed—they returned to fundamental principles and intrinsic values of the crypto industry.

The Evolutionary Definitions of Native Token and Crypto Native

Governance Concept (2017-2018)

Andrew Spence (December 2017) and Ryan Sean Adams (October 2018) expanded the definition of Crypto Native from a governance perspective. According to Ryan Sean Adams, Crypto Native is not just someone holding cryptocurrency assets but organizations built on blockchain—where code replaces laws, and DAOs (Decentralized Autonomous Organizations) replace traditional companies.

Definition of Property Ownership (2020)

Daniel provided a comprehensive definition in December 2020:

1. Crypto Native (individuals): Those who purchased cryptocurrencies before owning any traditional assets (stocks, bonds, real estate, etc.).

2. Crypto Native (businesses): Decentralized protocols providing functions currently offered by CeFi or TradFi.

This definition emphasizes that native tokens and Crypto Native are not only about owning digital money but also about building entirely new economic systems based on blockchain.

Core Characteristics of Crypto Native and Native Tokens

Decentralization

Crypto Native believes that no centralized organization should control macro-level operations. Bitcoin is managed by a decentralized network, making it independent and immune to control by individuals, companies, or governments.

Even if governments worldwide ban cryptocurrencies, as long as there is connectivity among individuals, digital currencies will not be eradicated. This is the fundamental strength of decentralization.

Trustless

Instead of relying on trusted parties, Crypto Native uses trustless mechanisms—based on mathematical proofs and objective cryptography. For example, the zkFOAKS proof system in Ethereum’s zkRollup does not require any trusted entities but uses pure mathematics to ensure consistency and verification.

This approach is not only safer but also more efficient and less costly than traditional trust-based systems.

Permissionless

An important feature of the Crypto Native ecosystem is permissionless participation—anyone can join, provide resources, or consume resources without needing approval from any central authority.

Compared to Web2: AWS allows consumers to participate but limits providers (only AWS). But with Arweave (decentralized storage), both sides are permissionless—anyone can be a provider or consumer.

Personal Sovereignty and Data Ownership

A major difference between Web3 and Web2 is data ownership rights. In Web2, if you post content on traditional platforms, that content can be deleted or censored. But in Web3, data belongs to the creator.

Blockchain technology provides verifiable proof and timestamping, establishing ownership rights through consensus. Platforms like Mirror publish NFTs on Ethereum and store content on Arweave—even if Mirror ceases operation, anyone can retrieve the data and restart the platform because ownership truly belongs to the creator.

Why Crypto Native Still Matters

The deeper goal of Crypto Native is not just owning native tokens or participating in crypto financial markets. It is a belief that blockchain technology can solve fundamental real-world problems.

The Crypto Native community on the Web3 stage practices principles: building decentralized systems, eliminating trust requirements (trustless), creating permissionless markets, and thereby effectively protecting personal sovereignty.

This is the essence of Crypto Native—not just a group of people holding cryptocurrencies but those practicing and building a world where blockchain technology brings freedom, equality, and true ownership to everyone.