This is a great analysis of the difference between distributed versus centralised data distribution protocols. The centralised systems don't depend on the underlying data communication and storage layer so much because these protocols are intimately tied to the application layer.

The whole point of distributed protocols is precisely to incentivise the development of applications. That is why it is 'fat'. I have been studying and to various degrees involved in the development of IT and network technology since the 80s and for me these systems are the realisation of the promise of early research into distributed systems that dates back to the late 80s.

Distributed systems do not benefit centralised organisations. In fact, in the long run, they are going to foster and encourage the development of application layers that operate in the same way. The disasters of MtGox and Bitfinex only drive this point home even deeper, as though people should have really grasped it the first time around. It reflects in the sagging interest in the tokens in that Fat Protocol layer that we see in the last few months with an ongoing decline of the price, and capitalisation.

Steem also has these issues to contend with as well, but because it shifts more of the activity into secondary protocol layers, this area where there is greater participation is seeing the inevitable rapid escalation of development investment into secondary protocol systems.

This is a significant milestone in the rise of decentralised network systems. Steemit represents the next generation and while new cryptos like Dash are moving in this direction also, Steemit provides a massive incentive in user participation, and this drives the buy-up of the tokens that the protocol is based on.