Welcome to crypto networks
Crypto networks are networks built on top of the Internet that 1) use consensus mechanisms such as blockchain to maintain and update their state 2) use cryptocurrencies (coins/tokens) to provide incentives for participants to come to consensus and perform certain useful actions.
Some kryptonite such as Ethereum is a General programmable platform that can be used with almost any purpose. Other crypto networks were created for a specific task. For example, Bitcoin was created to store value, Golem-to perform calculations and Filecoin for decentralized file storage.
Early Internet protocols were technical specifications created by groups or non-profit organizations that relied on the common interest of the Internet community in adopting the technology. This method performed well in the early stages of development of the Internet, however, since the beginning of 1990-ies, a very small number of protocols became widespread.
Crypto networks solve these problems by providing economic incentives in the form of tokens to developers and those who support the network. They are also technically more reliable. For example, they can maintain their state or perform any transformation of this state. This is something that previous protocols could not do.
Crypto networks use a variety of mechanisms to ensure that they remain neutral as they develop, and will not turn into a mousetrap like centralized platforms. First, the contract between crypto networks and their participants is implemented in open source code. Secondly, they are regulated through "voice" and "exit"mechanisms. Participants have the right to vote both on-chain (implemented in some cryptocurrencies) and off-chain — through social platforms and structures created around the Protocol). In addition, participants can leave the network at any time by selling their tokens or, in extreme cases, creating a fork — their version of the Protocol.
In short, cryptographic networks encourage participants to work together on a common goal — network distribution and token price increase. This is one of the reasons why Bitcoin continues to thrive, despite the huge number of skeptics and the emergence of competitors like Ethereum.
Today, crypto networks suffer from restrictions that do not allow them to compete fully with centralized organizations that control the market. The most severe limitations are related to scaling and performance. In the next few years, everything will revolve around these restrictions and the construction of networks that will become an infrastructure layer for the entire crypto sphere. After that, most of the energy will be used to create applications on top of the created infrastructure.
How decentralization will win
It is one thing to say that decentralized networks must win, and quite another to say that they will win in any case. Let's look at the specific reasons for being optimistic about this.
SOFTWARE and web services are created by developers. There are millions of highly qualified developers in the world. Only a small proportion of them work in large technology companies, and an even smaller proportion work in large companies to create new products. Many of the most important IT projects were created either by startups or by a community of independent developers.
