Cryptography Innovator Adi Shamir Expresses Preference for a World Absent of Cryptocurrencies
Rewritten Article:
Adi Shamir Slams Cryptocurrencies at RSA Conference
Biting the bullet, cryptography legend Adi Shamir climbed on the bandwagon of critics at the RSA Conference in San Francisco, CA. On Tuesday, Shamir, co-creator of the RSA encryption algorithm, slammed cryptocurrencies for falling short of their promises.
"I ponder if the world would've been better off without cryptocurrencies," the panelist candidly shared with the attendees, as reported by the tech website, The Register.
Crypto Misfires, According to Shamir
While praising Satoshi Nakamoto for their seminal Bitcoin whitepaper, Shamir asserted that crypto has failed to achieve decentralization. "Everything's tremendously centralized in a handful of massive exchanges," he noted. Redefining crypto's primary purpose, Shamir claimed, "people aren't using it for transactions; they're using it for speculation."
Adding fuel to the fire, Shamir pointed to crypto's contribution to the proliferation of malware, explaining, "it would've been extremely difficult to siphon off so much money without it."
Ed Felten, computer science professor at Princeton University, countered with a more moderate perspective. "To blindly defend every crypto in existence or the individuals within the sphere would be foolish," Felten explained. An advocate for crypto's potential, Felten contended, "it reminds me of the early internet, complete with its share of tomfoolery, downright dangerous acts, and crooks, but it's also the birthplace of innovation."
Shamir admitted that there's still value in blockchain technology, the underpinnings of crypto, and cryptos might harbor "great applications."
The Pioneer of Cryptography
Adi Shamir hit the bullseye in 1977 when he invented the RSA encryption algorithm alongside his co-conspirators Ron Rivest and Leonard Adleman. The groundbreaking public-key cryptosystem revolutionized secure digital communication without necessitating secret keys in advance.
In 2002, the trio bagged the Turing Award, well-known as the highest honor in computer science. Shamir's innovative cryptography advancements paved the way for various tools we use today: secure browsing, digital signatures, encrypted email, VPNs, and software licenses. Shamir's cryptographic genius has even seeped into crypto wallets, such as Trezor, Ledger, and Vault12.
Despite his monumental achievements, Shamir can't always hit the mark. In 2013, he penned a paper suggesting connections between Bitcoin creator Satoshi Nakamoto and Dread Pirate Roberts, an alias of Silk Road's dark web marketplace founder, Ross Ulbricht. However, these claims were later debunked.
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Image credit by Dan Farber, licensed under CC BY-NC 2.0.
Enrichment Insights
- Overview: In 2025, Adi Shamir, a cryptography pioneer, aired his skepticism towards cryptocurrencies, emphasizing their failure to match expectations and achieve decentralization.
- Primary Reasons for Criticism: Shamir believes that cryptocurrencies, such as Bitcoin and Ethereum, have failed to meet their lofty ideals[1], causing him to question whether the world would have been better off without them. Furthermore, following a digital gold rush[4], cryptocurrencies are accused of concentrating wealth in the hands of big exchanges with no real-world value beyond speculation[2].
- Impact of Criticism: Adi Shamir's strong critique, given his prestigious role in the cryptography field[3], may prompt a needed examination of cryptocurrencies' contributions and shortcomings and solidify doubts about their value.
- Responses in the RSA Conference: Although specific reactions from the attendees or other speakers at the RSA Conference aren't recorded, Shamir's comments might have initiated discussions and debates surrounding the future of cryptocurrencies at the conference, a major cybersecurity event.
- Broader Context: Shamir's critique underscores broader skepticism and challenges faced by cryptocurrencies, including regulatory pressures, market volatility, and security issues. Despite obstacles, the crypto community may rise to the challenge by bolstering security protocols, improving transparency, and demonstrating practical advantages beyond speculative investment.
- Adi Shamir, the co-creator of the RSA encryption algorithm, criticized cryptocurrencies for not meeting their promises during the RSA Conference in San Francisco, CA.
- Shamir questioned whether the world would be better off without cryptocurrencies, citing their inability to achieve decentralization and the fact that people primarily use them for speculation.
- He noted that the crypto market is extremely centralized in a few massive exchanges, contrary to the decentralized nature that initially attracted many people to cryptocurrencies.
- Shamir also attributed the proliferation of malware to cryptocurrencies, suggesting that it would have been difficult to siphon off so much money without them.
- Ed Felten, a computer science professor at Princeton University, provided a more moderate perspective, acknowledging the potential dangers within the crypto sphere but also its potential for innovation.
- Shamir admitted that there is still value in blockchain technology, which underpins cryptocurrencies, and that cryptos might harbor "great applications."
- Shamir's cryptographic genius is evident in tools such as secure browsing, digital signatures, encrypted email, VPNs, and software licenses, many of which are integrated into crypto wallets like Trezor, Ledger, and Vault12.
- In 2013, Shamir suggested connections between Bitcoin creator Satoshi Nakamoto and Dread Pirate Roberts, the alleged founder of the Silk Road dark web marketplace; however, these claims were later debunked.
- The iconic RSA encryption algorithm, invented in 1977 by Shamir along with Ron Rivest and Leonard Adleman, revolutionized secure digital communication without the need for secret keys in advance.
- In 2002, the trio received the Turing Award, the highest honor in computer science, in recognition of their groundbreaking cryptography advancements.
