What is decentralization?

Decentralization: Empowering the Community

Today, we will discuss decentralization, a key characteristic of cryptocurrency that has become synonymous with it.

What is decentralization?

Decentralization refers to a system where functions and power over management are dispersed among participants, rather than being controlled by a single governing body.

How do decentralized systems differ from centralized ones?

The idea of decentralization challenges the values upheld by technology giants like Google, Facebook, and Twitter.

Web 2.0 services typically have a strict hierarchical structure that grants full control to the platform administrators.

Those at the top of this hierarchy can unilaterally make decisions that impact all users.

What are the consequences of centralization?

Centralization often leads to the censorship of opinions disliked by platform administrators and manipulation of the system in their favor.

Recall the Twitter Files scandal earlier this year, which exposed the platform's practice of blocking objectionable content and manipulating user feeds.

Decentralization aims to address such issues by returning power to the community of product users.

Why are decentralized networks superior to centralized ones?

1. Important decisions are made collectively and transparently.

   In the world of cryptocurrency, this is typically achieved through voting by governing tokens, ensuring that no single entity has complete control over the network.

2. Decentralized systems are more reliable and resistant to failures.

   Bitcoin has demonstrated this resilience over the past decade, with only two network failures occurring in 2010 and 2013.

3. Decentralized networks are more open to third-party developers.

   On the Ethereum blockchain and its second-level networks, developers have the freedom to create programs accessible to users worldwide.

Conclusion

Decentralization is not a cure-all for the challenges of the modern internet. However, its value lies in offering a better approach to creating services and fostering self-organizing communities.