RE: Decentralization: Why We Need It? & What Is Wrong With Centralization?
I wish you would have writing about the benefits of centralization I do understand and agree with the issues you have put forward, and I also agree we need a better way, but do we really want decentralized money? I mean what is the real problem with money? I mean besides the fact that most of us do not have enough of it. With decentralization there is no one to deal with when things go wrong. There is no central place to complain to when the money does not work or it get stolen. We can be cheated by those who find ways to get around the way the system works but there is no one in control. There is also no standard for anything. As an example how do we know the price difference between Steem and Bitcoin is accurate? Who sets it and how do we know it will not change drastically in the next ten seconds as many currencies do. Also decentralization does not end corruption, it only makes it harder and when quantum computing comes along in the next 5 to 7 years, it will actually be easier perhaps. Centralization stabilizes things so that commerce and safety can be put into force. without it there are as many problems created and potentially more than with it. These are all issues to consider. Who makes the decisions about this. I mean do we want groups who we cannot even identify playing with our currency? Just some questions for us all to consider as we run toward the idea of decentralization. Not true decentralization because at the end of the day all of these cryptos are controlled by groups. Thanks and I would love to hear your thoughts.
Appreciate the skepticism @davidallenjones. It is always healthy to ask questions. The only thing I will say is that while I agree we may not need decentralization in every aspect of our society, money is one of the best use cases for decentralization.
As our current system operates, the value of our money is determined by a select few unelected officials at the IMF, BIS, and in central banks. These unelected officials are really running the show, and hardly anyone pays any attention to them. This allows them to do whatever they please, use complex sounding language to appear friendly and all-knowing, promote shady political agendas, various other unmentionables, all while devaluing the value of our hard earned savings.
This is a topic I really care about and actively write about, so I encourage you to read a bit of my material. I also highly recommend anyone reading this read the book below. It was quite the eye opener for me several years ago when I went down the rabbit hole.
Thanks for the thoughtful comments. I am really familiar with this topic and am writing a series of papers on the the subject as well. I am also familiar with the book and have it here. It is definitely a mind blower. My points though go to the question of what is a better system and is the current problem due to the people or the actual system? I cannot imagine a system that is "decentralized when we talk about currency. People use that word about cryptocurrencies yet are they really? Steemit has those who oversee things and favor is paid some over others based on some predetermined sense of merit. I did not have a say in that and probably neither did you. I love the concept but putting it into action is at best extraordinarily difficult. Kind of like the perfect society. Funny I am a dreamer for sure but I think as I get older I want so bad to see change happen that I am reluctant to go out to far on a limb because I have seen it break behind me too many time. I do feel that we are in a time of great change, but I feel just as certain that we may have been sold too much just to get us excited. And I personally do not think the oversell was necessary. the industry is dynamic and disruptive, but disrupting the money system. I really have to see the replacement and for now I do not think I have seen it yet. Again not saying it is not here nor that it will not come, only that what has been presented hasn't been a viable solution in my humble opinion. Cryptos each have their individual problems some of which are known and others that will present themselves if/when they scale. I hope t be a part of the change however it takes shape because as we can both agree on, there needs to be a change for the better. Also it is my understanding that Steem has built in inflation meaning that they wil not stop minting tokens. Is this accurate? Finally I will read your other articles. Thanks and keep pushing for a better future for us and our families.
Thank you, @davidallenjones for the thoughtful comments.
1- I have talked about centralization and why we need it in a previous post. Please check it out.
The idea of decentralization is to replace the current centralized systems with decentralized systems that perform the same function and service without the problems that come from centralization.
2- This is the vision. I agree with you that it has not materialized, yet! But It is possible, and serious steps towards achieving that goal has been taken. We are not there yet, but we are on the way. We are still experimenting with cryptos, and until now, the results are so hopeful. Cryptocurrencies have the potentail to solve some big problems in our world.
3- There are many projects claiming to be decentralized while they are really not. That is why I am trying to evaluate some interesting crypto projects to determine how decentralized they really are. I shall start with Steem soon. It is very probable that I would find that it is not that decentralized.
4- As for money especially: we have witnessed outrageous crises in so many areas in the world because of centralized money. So, the problems that you are worried about are there now with fiat money. We have seen that BTC was able to solve some of them. For example, with BTC, you are able to send money to anyone in the world. There is no geographical limitation. You do not need any permission from any entity. Of course, BTC has its problems, but we are working on solving them.