The onchain future: Exploring the infrastructure behind Open Money
Learn why onchain infrastructure is the foundation of a user-owned, interoperable internet.
Section four of Open Money dives deep into the onchain ecosystem and the core infrastructure that underpins a decentralized, digital financial future.
It outlines how traditional, centralized systems — long dominated by corporate intermediaries — are being replaced by blockchain-based alternatives that empower individuals through self-custody, interoperability, and trustless interactions.
What is section four about?
At its core, this section is an exploration of the technical and philosophical shift towards decentralized networks. It details key components of the onchain world, such as:
- Web3 wallets and addresses: These tools are just storage devices for cryptocurrencies; they serve as gateways to a broader digital identity, allowing users to access apps, verify their credentials, and maintain control over their assets without intermediaries.
- Crypto exchanges: Both centralized and decentralized exchanges are discussed, highlighting how they function as bridges between traditional financial systems and onchain economies, despite challenges like security risks and regulatory scrutiny.
- Smart contracts and oracles: Smart contracts automate transactions and enforce rules autonomously, while oracles extend their functionality by importing real-world data — making decentralized applications (dApps) more dynamic and responsive.
- Decentralized identity and storage: Moving beyond financial transactions, the section illustrates how decentralized identifiers (DIDs) and storage networks (such as those powering the permaweb) are reshaping digital identity and data preservation, emphasizing permanence, privacy, and resilience.
- Bridges and on/off ramps: These are critical in ensuring interoperability between disparate blockchains and between legacy financial systems and the new decentralized frameworks, thereby reducing friction and facilitating mass adoption.
How does this relate to the rest of Open Money?
Section four is a foundational pillar in the larger Open Money narrative. While earlier sections might have introduced the vision of a democratized digital economy, this part provides the technical and practical blueprints that make that vision possible.
By breaking down the components — ranging from wallets to oracles — it connects abstract ideals of financial sovereignty and permissionless access to the concrete technologies that enable them.
In doing so, it reinforces the central message of Open Money: true economic freedom and digital agency can only be achieved when control is returned to the individual, free from the confines of centralized authorities.
What are the most important takeaways?
- Decentralization is both technological and philosophical: The shift towards onchain systems is not merely about adopting new tech but rethinking how trust, control, and value are managed in a digital society. Self-custody, facilitated by web3 wallets and decentralized identities, ensures that users remain the masters of their own digital destinies.
- Interoperability is crucial: From bridges connecting different blockchains to on/off ramps linking traditional finance with crypto ecosystems, the seamless movement of value and information is key. This interoperability underpins the entire Open Money framework, ensuring that decentralized systems are not siloed but are instead part of a larger, cohesive financial network.
- Automation and transparency empower users: Smart contracts and blockchain explorers bring a level of transparency and automation that redefines accountability. By replacing blind trust with verifiable data, these tools help create a more resilient, efficient, and user-centric financial infrastructure.
- Security and user experience are evolving: While challenges such as security risks and user friction remain, continuous improvements in wallet design, smart contract auditing, and decentralized storage methods are rapidly closing these gaps. This evolution is essential for driving mass adoption and making the decentralized future accessible to everyone.
Section four of Open Money explains some of the technical foundations of a decentralized economy, emphasizing that the future of money lies in systems that are open, interoperable, and controlled by their users.
By bridging the gap between vision and practice, it lays out a roadmap for transforming our digital lives through a series of interlocking, onchain innovations.