The crypto industry faces a critical issue that could slow its progress: a shortage of developers. Although the crypto world is thriving with traders and enthusiasts, the number of developers building long-term blockchain solutions is very small. For crypto to reach its potential for mass adoption, more developers are needed to create innovative applications. Without them, the growth of the industry will remain limited, and its ability to disrupt industries outside of finance will be greatly reduced.
The Developer Gap: Numbers Show the Problem
Currently, there are about 26,000 active web3 developers globally, according to a report by Electric Capital. This is tiny compared to the 27 million developers in traditional tech fields. GitHub estimates there are over 100 million active developers worldwide, further highlighting how few are working on blockchain and decentralized finance (DeFi). This massive gap between traditional tech and crypto developers is a significant obstacle to the widespread use of blockchain technology.
Why the Developer Shortage Exists
Several factors contribute to this shortage. One is the “cold start problem,” meaning many potential developers aren’t familiar with crypto apps. To get them involved as developers, we need more useful apps beyond just financial products, but to create these apps, we need more developers.
Another reason is that crypto is often seen as risky. Many developers view it as an unstable and unregulated space, linked to scams and volatility. This perception discourages experienced professionals from entering the field, leaving mainly younger developers with less at risk to explore crypto development. The crypto world’s association with risky financial products makes it seem less attractive to those looking for stability and a clear career path.
The Success of Developer-Friendly Platforms
Some platforms, like Base, have found success by creating a more developer-friendly environment. Base provides comprehensive tools and resources to make building onchain easier for developers, which has helped it attract a growing number of developers. The platform shows that when developers are given the right support and incentives, they can create a wide range of decentralized applications that attract users and push the industry forward.
The Role of Hackathons and Grants
To address the developer shortage, the industry has heavily relied on grants and hackathons to attract new talent. While these methods are useful, they are often short-term solutions. Hackathons are exciting, but they are usually one-time events that don’t provide ongoing support for developers to continue their projects. Similarly, grants can be difficult to access due to long application processes and strict requirements, making them less appealing to new developers. These strategies tend to compete for the same limited pool of existing crypto developers instead of bringing in new talent.
Universal Builder Income (UBI): A Promising Solution
A new approach, called Universal Builder Income (UBI), is being discussed as a potential solution. UBI would offer developers regular financial support, allowing them to focus on building innovative solutions without the worry of financial instability. This system could provide developers with the freedom to create new applications and solutions, helping to attract a more diverse group of developers, including those from underrepresented backgrounds.
UBI would also decentralize the crypto ecosystem by distributing financial rewards directly to individual developers, rather than through centralized companies. This would ensure that value flows to those actively contributing to the development of crypto, promoting a fairer distribution of resources. Early versions of UBI, such as Drips Network, are already exploring ways to provide funding more effectively at scale.
Why UBI Matters for the Future of Crypto
By supporting developers with UBI, the crypto industry can empower them to focus on creating the innovative solutions necessary for the industry’s growth. UBI also encourages a more inclusive developer community, bringing in a range of perspectives that can lead to creative new applications. This is crucial for crypto to break out of its current focus on financial products and move into areas like art, gaming, and other daily-use applications.
Furthermore, UBI would allow developers to take more risks and experiment with new ideas, knowing they have a financial safety net. This freedom could lead to a surge in new apps that appeal to a broader audience, helping crypto reach the mainstream. It would also help make crypto development more attractive to skilled professionals who might otherwise avoid the space due to the perceived risks.
The Road Ahead: A Call to Crypto Leaders
Crypto leaders have a key role to play in solving the developer shortage. By experimenting with new models like UBI, they can help build a more resilient and inclusive ecosystem that supports long-term growth. Now is the time to start exploring different ways to fund and support developers, sharing insights and ideas with the wider community to ensure the next generation of software creators has the tools they need to succeed.
In conclusion, the future success of crypto does not lie with traders or short-term financial products, but with the developers who build applications that integrate blockchain technology into the daily lives of billions. The industry needs to prioritize attracting and supporting more developers if it is to achieve its full potential.
