What Would Happen to Bitcoin and Crypto Without the Internet? (2024)

The internet is cryptocurrency's lifeline, but what if it didn't have to be? Considering the number of times governments across the world have shut down the internet, it's not far-fetched to imagine what would happen to cryptocurrency markets if there were a global internet blackout.

So, could cryptocurrencies exist without the internet?

The Role of the Internet in Crypto

Crypto was conceived as an extension of the internet, the very infrastructure it's founded on. The initial vision of cryptocurrency as digital assets that can be transferred among peers across the world without dependence on centralized institutions like banks cannot be actualized without the internet.

All blockchain technology (the immutable database with a record of all cryptocurrency transactions) exists on the internet. It's distributed among millions of computer nodes and operates on the principles of transparency, allowing for secure and direct transactions without dependence on intermediaries.

Unless these nodes are connected by a single network, i.e., the internet, working together to ensure the integrity of the database, cryptocurrency transactions wouldn't be possible.

What Would Happen to Crypto if There Was No Internet?

It's difficult to imagine a world where the internet breaks down in its entirety. While governments can turn off the internet within their jurisdictions, which often comes with bad financial consequences for their economies, it's almost impossible for the whole World Wide Web to go dark.

But assuming it happened, crypto would be brought to a standstill. Cryptocurrencies depend on the internet to confirm new transactions and add them to the blockchain distributed across nodes. Removing this system would mean individual nodes couldn't coordinate globally to mine new blocks.

Some cryptocurrencies may have the resilience to function for a short period without the internet using other technologies. For instance, in Bitcoin, as long as the transaction data can reach the blockchain, regardless of the means, it will continue to operate. However, it also means the alternative technologies will have to be robust enough to enable global connectivity and coherence on one blockchain.

Potential Technologies That Could Power Crypto Transactions

While a total shutdown of the internet could cripple the mechanics of cryptocurrencies, the decentralized and adaptable nature of some cryptocurrencies could offer them a chance of survival using alternative technologies such as:

1. SMS. Short messaging services can allow users to transact cryptocurrencies. Essentially, users can initiate a transaction using a standard text message, which can be confirmed and recorded on the blockchain using a connected service. Machankura is one such solution that enables Africans without a good internet connection to transact in Bitcoin using SMS.
2. Satellite: Crypto transactions can also be transmitted using satellite signals. All one needs is a satellite receiver to process transactions and record them on the blockchain. This technology is already in use by Blockstream, which provides Bitcoin transactions to users in remote locations.
3. Radio: Radio technology can also be used to power crypto transactions. In 2019, according to Coindesk, two Bitcoin developers used radio waves to process a Bitcoin lightning payment. This idea was conceptualized as a solution to Bitcoin becoming censored. If used to create a meshed radio network, it would effectively power crypto transactions.

All these solutions present an opportunity to power cryptocurrencies and make them less reliant on the internet. If these technologies are implemented extensively while the internet is on, and alternative ways to mine blocks offline are introduced, an internet blackout may not cripple the crypto.

Challenges of Using Alternative Technologies

Although these solutions seem effective at powering cryptocurrencies in the event of an internet blackout, each of these solutions relies on the internet to record transactions and add new blocks to the blockchain, a process known as crypto mining. Since it has never happened, we cannot be certain they'd work without a total internet blackout.

In addition, the consequence of an internet shutdown is a fragmented blockchain. Each network or node will have its own copy, which cannot be easily reconciled with all other copies, resulting in some transactions being discarded during block addition. All these alternative technologies would have to cooperate on one network to have a single functional blockchain.

Lastly, alternative technologies' technical limitations will limit crypto transactions' reach and reliability. For instance, the radio wave Bitcoin transaction discussed earlier was significantly slower and required special software-defined radio receivers costing upwards of $200 to work.

We Still Need Crypto That's Not Internet Reliant

Considering the large shift to the digital realm experienced globally, it's unlikely that the internet can be turned off globally. So, it's not a major concern for the crypto development community.

However, for the sake of situations where the government censors the internet for whatever reason, alternative solutions ought to be developed to power the financial inclusivity and sovereignty that cryptocurrencies offer us.

Or, just start using cash.