Decentralisation is pivotal in the internet and blockchain world. The internet was decentralised in its early stages, fostering innovation and competition. As it matured, it became centralised, with a few tech giants dominating the market. This centralisation has led to stifled innovation, privacy breaches, and monopolistic behaviour. Blockchain technology promises a return to decentralisation, where no single entity has control.
Decentralised platforms distribute network effects, benefitting both early adopters and latecomers. Protocols, not platforms, are the fundamental unit of blockchain, and they are inherently decentralised. They incentivise early adopters with tokens, which gain value as the network expands. This model fosters competition, as developers can build on top of existing protocols without permission, creating a more equitable internet ecosystem.
However, decentralised platforms face challenges. They are technologically complex, and their governance is fraught with difficulties. Despite these hurdles, the potential benefits of decentralisation are immense, offering a more democratic, innovative, and fair internet.
The shift to decentralisation is not just about technology; it’s a movement about values and societal structure. It’s about creating a digital world that prioritises the many over the few, fostering a more equitable and innovative future.
Go to source article: https://medium.com/@cdixon/why-decentralization-matters-5e3f79f7638e