The Main Challenges of Decentralization | Hacker Noon

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@lesnikutsaIgor Ponomarev

Since 2017 in the cryptocurrency world. Decentralization will take over the world!

For the most part, the modern world is centralized. Everywhere you look, everything has one single control center – from a small circle of Alcoholics Anonymous, to global world companies and the states themselves. This method of government has evolved over the centuries and has a number of drawbacks, among which the fear of losing power stands apart – in my opinion, this is what stops the development of alternative government …

Decentralization stands in opposition to centralization and is currently rapidly breaking into the world order of the modern world. Many large companies are trying to make timid attempts to move to decentralization, but we perfectly understand that it is cryptocurrencies that set the pace for the development of decentralization and help interfere with the existing world order. Decentralized exchanges with multi-million volumes are gradually emerging (such as Uniswap, 1inch, and others); decentralized applications on the blockchain (Dapps) are being created and there are attempts to create decentralized communities (of the latter one can recall the FreeTON ecosystem), which must independently make management decisions.

The very blocks of data stored in the blockchain and the nodes scattered in different places are the main example of the possible widespread implementation of decentralization in the global infrastructure. But is everything so good with decentralization? Is society itself ready for such a transition?

Decentralization challenges

At first glance, it seems that there are practically no problems with decentralization and decentralized management and there are much more advantages, but this will become possible at the final stage of the transition to decentralization, but for now, we are in an embryonic state – and right now a lot of logical problems are emerging:

The key problem of decentralization can be called the problem of “Byzantine generals”. The example implies that several “allied” armies took the fortress under siege, but the trust between the armies was at zero and they could not agree in any way. Each was afraid to send a message to the other, as he was afraid of losing leadership and did not trust anyone. This example can be easily shown on the nodes of the blockchain, which may strive to break out into leaders in order to obtain greater benefits and try to transmit deliberately false information to remove other nodes

The second problem follows from the first problem – the unpreparedness of society itself for drastic changes, not a desire to eradicate greed, bad motives and start working for the benefit of a project, ecosystem, or some kind of blockchain. So decentralized communities can try to influence other participants through voting or manipulation

The third key problem is the fear of those in power with changes, along with which they will lose their money, money, and their usual way of life. So at the state level, we constantly run into bans, restrictions, etc. New laws are introduced, attempts to impose restrictions, and just intimidate people.

But I am sure that sooner or later we will come to a consensus and for the most part, we will move on to decentralization. This transition will not be easy and most likely there will be many more shocks and various incidents. But the most important thing is that the world does not stand still and we are steadily moving forward towards decentralization

Decentralized governance is a great opportunity to show the whole world what a real blockchain is. Get on the train friends!!!

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Since 2017 in the cryptocurrency world. Decentralization will take over the world!


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