We are entering a period where there is a lot of chaos. Things are changing quickly and it is difficult to make out where things are going. We live in a world where major corporations exert a great deal of control. We then couple that with billionaires who have enormous wealth to insert their will as they see fit.
All of this can leave one feeling hopeless and fearful.
When it comes to blockchain and cryptocurrency, we see the powers aligning. There are some strong forces against what is taking place. With the entry of Wall Street, we now have some of the most powerful institutions in the world starting to take over. This is joined by the governments of the world starting to stand up. After all, these entities are all about control.
Cryptocurrency is a dagger in what they are stand for. We can see the shift that is going to take place. It is clear as day. However, to see that, we have to be able to grasp the powerful of decentralization. There are some fundamental differences that we need to internalize to view how things will likely unfold.
What is interesting is that people are conditioned to think the opposite. The power is not with centralization, at least not in the long term.
Source
Decentralization Destroys Centralization
This is a concept that is difficult for people to grasp. We see the power wielded in this era by the likes of Apple, Amazon, and Facebook. How can they ever lose power>
It is a thought process that makes sense. On the surface, it looks like an impossible battle. Nevertheless, we have some traits that fully exemplify where things are going.
Centralized entities that use a hierarchical structure have a major advantage: efficiency. They can get things done at a rapid pace, especially when compared to decentralized entities. This is one of the reasons why many feel decentralization cannot compete.
The game changer does not come from speed and efficiency. This only yields short term results. True power comes from innovation. This is something that centralized entities tend not to excel in.
Disruption rarely happens within an industry by the leading companies of the time. In fact, when it comes to technology, that almost always comes from the outside. This tells us a great deal about the centralized entities as well as their focus.
Basically, they are looking at maintaining the status quo. Few companies are willing to blow up their entire business model in hopes they arrive at something better. They simply are not going to take on that risk.
Start ups, entrepreneurs, and business rebels, on the other hand, have nothing to lose. They will start looking at things in a different manner and working towards that end. This is how disruption occurs.
Decentralized entities have a lot of cooks in the kitchen. People are free to work upon what they want. This means that, as certain projects expand, the net gain is much greater. Innovation is a natural result since there are experiments taking place everywhere. Without a structured approval process, people simply start creating. In the end, some of this breaks through.
Contrast this with established players who fall victim to their tendency to stop innovating.
True Decentralization Within Blockchain
Recently, we saw a couple of events that should open everyone's eyse.
The first was the Ethereum merge. Since that time, by moving to proof-of-stake, it is evident how the coin voting their is totally centralized. Block production is in the hands of a few. This is of concern to those who truly understand the tenets of cryptocurrency.
We had a follow up to this with the hack of BNB. In response, CZ ordered the chain shut down. How does one person order the stoppage of a blockchain? Naturally, this is only possible if said chain is fully centralized. For many, this is no surprise since, despite his claims, we knew the block validators were nothing more than sock puppets.
Hive is different. We are now actively working on more layers that are decentralized. This is turning the ecosystem into one of the more logical destinations going forward.
Simply put, Hive is going in many different directions. For this reason, it looks chaotic and has a negative impact in the short term. Remember, centralization is more efficient. However, in the long run, it falls short as innovation takes hold.
Here is where Hive can excel. There are a number of projects being worked upon that have a great deal of potential. We have hundreds of people fully dedicated to making a difference. We can see this with games, applications, social media, and the general idea that we are "each a business".
Think about that for a second: how many people consider themselves a business when they are at work? This is not the mindset people have.
Hive is permissionless. This means that anyone is free to construct what they wish. Here is the major difference. If you want something built, go ahead and do it. There is no committee or protocol to follow. Simply take action.
Some feel that viewing Hive through this lens is absurd. However, if we understand the true nature of the centralized versus decentralized battle, we can see how the latter always wins in the end.
Keep in mind, the usually downfall of centralized entities is their lack of innovation. Ultimately, they get put out of business by their own poor decisions.
We often talk about Hive being a long term process. This is one of the main reasons. Decentralization is slower in the short term yet the ability to innovate while avoiding stagnation emerges in the long run.
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Decentralization offers the flexibility and freedom to be 'outside the box'. To innovate and be creative. With blockchain and cryptocurrency, this can happen on a large scale.
In the long run, centralized companies that aren't able to adapt will be left behind or become extinct.
Decentralised blockchain: overestimated in the short term, underestimated in the long term
A great way of looking at it.
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it's going to be hard to keep gov and big corporations away from crypto and web 3.0 cause they have money and a lot at that we in blockchain lot use votes to govern and make a new rule for its future but if one group get live over 51% we will be compromised but we can always split like hive ane steemit
They are already into crypto. It is not a matter of keeping them out since Wall Street led the way in.
Whether it is overt or not, they are here.
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Yeah and I think black rock is also managing crypto
I completely agree here with you @taskmaster4450. Even if we strive for regulations we live in the era of big corporations, cartel monopolies and capital where the few rule the many. Its easy to get cozy and lazy when in a position of power and I really hope blockchain and descentralization servs as a kick in the butt to centralized (and corporative) solutions.
The utility is of cryptocurrencies and blockchain is crystal clear to me. I am just worried about scaling into the mainstream, will we be able to adopt billions of users in the long run? I really hope so
Scaling is obviously an issue. This is where having many layers able to take on the appropriate functions. For example, having smart contracts at the second layer helps to make the base layer more efficient.
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hopefully, devs and crypto users alike are learning from the BSC and even the current state of things on Ethereum decentralization is key for the effective disruption of centralized systems which we often nag about so let's to prioritize decentralization rather.
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It is hard to deny the exposure that is taking place because of what you alluded to. The question is how many are listening.
We know people like Dan and Matt are still banging the decentralization drum.
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Hive needs an infusion of new projects and more utility for the token. Blockchain gaming on Hive surely is our spotlight, but I believe that we can do more in other domains as well.
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There are a lot of domains we can enter. I am working on a framework to concentrate on the financial.
We can enter into most areas especially with a decentralized node system at the second layer.
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Decentralization is great but a distributed network is better.
For some reason I feel like Hive would be known for the game developers chain. I am sure if we do marketing right polygon wont be getting that crown. I think more card games and the other genres need to come to the Hive.
Gaming is a terrific area to focus upon. We will see what developers head towards Hive.
The HAF is going to be helpful for Hive development.
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I always liked decentralization, still now but for some reason the game of decentralization also occurs to have some serious problems in such cases that- if an evil power/miscreants consistently damage others using the sole command and power vested in his hand, ransacking others and their freedom illegally, then it gets to a complete chaos, since there is no centralized system to take action for it.
Hive has seen such things but the subsequent response wasnt really enough to curb the problem and ultimately for the reason, quite a large number of identity holder lost their balance and comfort, I think that problem should also be counted.
The fact we are operating under the radar is our advantage.
As much as people want a pump, we are better off being hidden for the time being.
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incredibly undervalued atm imo
Hard to argue that point of view in my opinion.
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I learn a lot from your ideas, without a doubt decentralization is the way and not only for blockchains, both the economy and society must be decentralized. When a few define the future of many, we are in a situation that limits us from growing. Good thing #Hive exists to show us the way!
Yeah, Hive is perfect as a side hustle. Despite the minuscule profits I make in terms of Hive, I just keep stacking them, and some day it could be huge.
!PIZZA
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Decentralization will always be tougher compared to centralization but I do think it's a more preferred model by people. It's kind of crazy to see how ETH became centralized after PoS but I think it was to be expected given how the distribution of tokens were.
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