The following open letter is co-authored by leading academics in cryptography and blockchain technology:
- Dan Boneh (Stanford University)
- Joseph Bonneau (New York University)
- Giulia Fanti (Carnegie Mellon University)
- Ben Fisch (Yale University)
- Ari Juels (Cornell University)
- Farinaz Koushanfar (UC San Diego)
- Andrew Miller (University of Illinois Urbana-Champaign)
- Ciamac Moallemi (Columbia University)
- David Tse (Stanford University)
- Pramod Viswanath (Princeton University)
A Multiple-Choice Question on Crypto Innovation
Consider the following:
Projects & Companies:
Algorand, Arbitrum, Avalanche, Axelar, Babylon, Cardano, Cosmos, Eigenlayer, Espresso, Flashbots, Oasis, Starkware, Sui.
Core Technologies:
Byzantine Fault Tolerance (BFT) protocols, digital signatures, formal verification, Maximal Extractable Value (MEV), public-key cryptography, Proof-of-Work, rollups, Trusted Execution Environments (TEEs), Verifiable Random Functions (VRFs), zero-knowledge proofs.
Which statement is true about these innovations?
A) They were invented/created by researchers employed at academic institutions or with deep academic roots.
B) They have driven transformational changes in the crypto/blockchain industry.
C) They demonstrate the critical role of academic research in advancing blockchain technology.
D) All of the above.
Answer: D. Most of these breakthroughs originated in universities—primarily in the U.S.
Cryptocurrency and U.S. Federal Policy
The White House and Congress are actively working to support innovation and solidify U.S. leadership in the crypto economy. Key initiatives include:
- The Presidential Working Group on Digital Assets.
- Proposed legislation like the GENIUS Act and STABLE Act.
While regulatory efforts are commendable, they’re not enough to guarantee long-term dominance.
The Funding Crisis for Academic Research
The White House’s 2025 budget proposal includes a 55% cut to the National Science Foundation (NSF)—the primary federal funding source for U.S. computer science research. Meanwhile, China increased its research budget by 10% in 2023.
Why this matters:
- NSF grants fuel the academic pipeline behind crypto innovations.
- Corporate funding rarely supports foundational research (it’s product-focused).
- Defunding NSF equates to defunding future crypto pioneers.
The Innovation Pipeline at Risk
We are academic researchers representing five U.S. universities. Beyond teaching, we:
- Conduct cutting-edge blockchain research.
- Train the next generation of PhDs—the future founders and scientists of crypto.
The Threat to Long-Term Leadership
- PhD enrollment is declining due to funding uncertainties.
- Many companies listed earlier were founded by former academics or their students.
- Without doctoral researchers, breakthroughs in scalability, security, and decentralization stall.
👉 Explore how academic research shapes crypto’s future
Conclusion: Science Is the Seed of Crypto Leadership
Policy alone can’t sustain U.S. leadership in cryptocurrency. The frontier of innovation is science, and universities are its incubators.
Call to Action:
Contact your congressional representatives. Advocate for:
- Sustained NSF funding.
- Policies that prioritize blockchain research.
As the authors of this letter, we’ve seen firsthand how academic work translates to industry impact. Without investment in foundational science, even the best regulations won’t yield a thriving crypto ecosystem.
FAQ
Q: Why is academic research vital for crypto?
A: Universities pioneer theoretical breakthroughs (e.g., zk-proofs, consensus algorithms) that later become industry standards.
Q: How does China’s approach differ?
A: China strategically funds research hubs, while U.S. cuts threaten to cede ground in blockchain innovation.
Q: What can individuals do?
A: Support STEM education and lobby for research funding—tomorrow’s crypto leaders are today’s PhD students.