The Centralization Of Decentralization

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2 May 2024

Perfect In Theory
The concept of decentralization, when presented on paper is a novel idea, and one that seems to offer the most favorable outcome when it comes to fairness and the prevention of dominant leadership. However, in real life, decentralized models are seldom as pretty as this picture. That being said, it’s the best system we have. Furthermore, how these models are designed plays an enormous part in how effective they will be in achieving the ideologies and objectives of decentralization.
There are many benefits to decentralization. Regarding Bitcoin, the decentralization of nodes is ultimately a form of protection, ensuring the longevity and life of the protocol. It seems that the average bureaucrat is incapable of comprehending this idea. Even well-known individuals within the investing world such as Dave Ramsay, who actually stated the following:

What if a computer nerd flipped a switch and turned off the Bitcoin computer. Poof, it would be gone.

This is, unfortunately, also the level of understanding amongst individuals who are actually responsible for the policies that govern our world. To call it ignorance almost seems like an understatement. Of course, the decentralization of nodes makes the possibilities of such an event practically impossible. The obvious response is…

How can individuals who do not understand a technology decide the laws and regulations to “govern” it?

The irony of it all is that Bitcoin, for one, is a self-governing protocol… and yet the desire and need to control it remains. Regulators and lawmakers are looking to encircle decentralized networks in an attempt to facilitate decentralization under a centralized form of governance. Essentially, this works to remove the essence of decentralization. And hence…

The centralization of decentralization.

In other words, the allowance of decentralized protocols. However, under a centralized form of oversight and governance. This has been creeping into the Crypto space for some time now. You will note that industry leaders have been targeted and brought to a level of compliance. It’s the equivalent of enabling or granting the freedom of movement, but then to set up a fence, or border that prohibits free movement.

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Although it appears to be a compromise, it also places lawmakers, regulators, and governments in charge. In other words… centralization. This is another important reason why I say that true decentralization is a myth. It’s impossible to achieve. We can only look to enjoy centralized protocols that, at least, benefit our needs and requirements to some extent.
The quest for absolute power will never end, and so one has to understand and accept that the purest forms of decentralization will eventually face attack. Smaller projects that are below the radar, perhaps have an extended window period. However, absolute power, seeks to eventually conquer all. In terms of nodes, decentralization is more robust. However, when it comes to transactional interactions, not so much.
Final Thoughts
Decentralization can be found in many forms and expressions. However, it will most certainly always be considered a threat. After all, everything and everyone must be ruled and governed, and in extreme cases, even owned. It’s for this reason that all decentralized models will eventually, at some point, face a level of scrutiny designed to ensnare and enslave them. Absolute power wants absolute control.
This is the way of the world. It will never change. Decentralized models, do, however, help to empower and protect, at least to some extent. The objective is to enjoy those benefits for as long as possible. Of course, innovation helps to prolong the process of “capture”. Anyway, that’s it for this one. See you next time!

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Disclaimer
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This article was first published on Sapphire Crypto.