How will a world of decentralized markets be different?

TL:DR; A world of frictionless, trusted, decentralized markets is sure to be different than our current one. The question is how.

The Crypto Commons article that I highlighted in yesterday’s blog post has really gotten me thinking about the power and potential of decentralized markets.

The team from Radar Relay has put together 2 really good primers to help explain the differences between centralized and decentralized exchanges.

They are short and worth your time.

They raise some really good points such as issues around custody and security while also not whitewashing challenges such as speed, front-running, and fiat pairs.

I find that in my crypto journey, I tend to jump a bit from one potential impact area to another.

I am ok with that as there are so many areas where I am excited.

I am starting to wonder, however, if maybe the way to just think about this whole thing is that blockchain systems enabled global, decentralized markets.

Anyone can join. The community polices, monitors, and governs it. There’s no risk associated with giving up control of your assets and there’s no authority deciding who gets to participate and who does not.

If that is the big innovation, then, what does it mean for unlocking assets and commerce?

How would life be different if anyone could get a seat on the NYSE or Nasdaq?

When I think about decentralized markets today, I think about scalpers in front of a stadium. It’s peer-to-peer and there’s little control or authority. But you don’t really have much trust in that transaction. You don’t know a ticket is legit or money isn’t forged.

Are there other examples I am not thinking about?

Craigslist list isn’t decentralized. EBay isn’t either.

Even farmer’s markets have some degree of centralized control, I believe. Correct me if I am wrong.

Could we just say that blockchains enable near-frictionless, decentralized markets, with implicit trust as a built-in feature?

If that is the case, how is the world going to be different?

That’s worth thinking about.