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RE: A Simple Reason Why Centralization Does Not Stand A Chance
Dear @taskmaster4450
Many ask how I can be so confident in decentralization when the masses showed no inclination towards it.
Wouldn't you say that right now we're also experiencing HYPE for decentralization? This word is like a magic spell already. Many seem to act like "decentralization can cure all problems of todays world".
I know we're all fully aware of flaws of centralization. But decentralization is still something very new and it seem that most of us are simply blinded by benefits and hardly anyone tries to figure out what will be the price for those benefits. What disadvantages will come along?
I would like to know what do you think,
Yours
Piotr
This is a very interesting question @crypto.piotr
Though I've seen very little about the drawbacks of decentralization, I don't expect the informed opportunity cost analysis would indicate that centralization is the more effective route. It could also turn out that many of the drawbacks of decentralized systems will be shared by their centralized counterparts. Still I'm now quite interested to learn more about the 'cost' side to the cost-benefit relationship in decentralized systems such as Bitcoin or decentralized crypto in general, all thanks to you!
Centralized entities are faster at making decisions. It may not be the best decision but they make it quickly nonetheless. Decentralized entities have no single point of failure. People usually consider that a good thing but what about in bad situations? What if a fork in code occurs which causes a system to malfunction and harm people? There could be a disagreement between involved parties where some actually support people getting hurt and killed and as a result, this system cant be shut off.
In decentralized systems, people might feel less accountable and are less likely to take action because they think somebody else can take care of it. Centralized entities may have clearer roles for people to follow.
Those are just the ones i could think of off the top of my head. I dont think decentralized always means better.
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Nor do I, but I tend to eschew 'worse', 'better', 'good', 'bad' and so on when I'm really thinking. I've pitched my metaphorical tent in the moral nihilist camp, so to speak.
@kenanqhd you make an intriguing point about the hazards of having no single point of failure. This mirrors some concerns I have about DAO/DACs (Decentralized Autonomous Organizations/Corporations) namely the automation of exploitation. I see numerous examples of corporate interest running amok and harming a great many people. The last thing I want to see is automation and decentralization of that sort of behavior, and this could happen even without any forking of previously innocuous code. Still I think benefit can come from people getting together for a common cause, but often it seems to me this is the exception not the rule.
As for the speed of decision making I can think of one example where centralized and decentralized are practically equivalent, maybe even with decentralized being a bit faster. That is cryptocurrency exchanges. On a centralized exchange internal transactions do take place much more quickly than block time, but to actually hold your own crypto (which I advocate) you have to wait for confirmation to get your money on the exchange the same amount as any transaction. Then you can make your trade(s) quickly, but to get your money back you have to do the whole transaction process again to your own wallet. Assuming no time restrictions or exceptions on withdrawals are imposed by the centralized exchange this is virtually the same in speed to using a DEX for a single trade. With a DEX you just have to wait for confirmation of outgoing funds and incoming funds. Now there's a whole gulf of nuance to be had here with how long you leave funds on the exchange and so forth, but in general I think they are comparable especially if you're trying to hedge against the real risk of the centralized exchange running off with your coins or even being hacked as it is a high profile target/honeypot.
Definitely stimulating discussion, thanks for the comment!
Dear @a-non-e-moose
Thank you for your previous comment. And Im also sorry for such a late reply. I wonder if you even will read my comment ...
ps.
I NEED YOUR HELP :) Nothing serious really. But I still hope you can spare few minutes of your time :)
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Let me know what you think? Perhaps you can also share some advises and hopefully we can "do little bit of brainstorming". Would be awesome to win :)
Yours
Piotr