Rules Without Rulers
This is the title of one of Andres Antropolous' talks about Bitcoin.
It is the essence of open, decentrralized blockchain. We see this as a threat to the existing system. Yet, it is something that is completely out of the realm of our logical reasoning, especially in light of the present system we operate in.
For this reason, people are completely baffled at how this is possible.
Of course, this is where consensus enters the picture. While the methodology might be different, the result is the same across all decentralized blockchains. Consensus is the governance mechanism that enables us to move forward.
Blockchain is a peer-to-peer system. It allows people to transfer value without the need of an intermediary. Of course, this does not sit well with those who are intermediaries. This statement includes regulators.
We see a move to try and control that which cannot be controlled. Regulators are trying to wrestle with blockchain and cryptocurrency. It is a fools exercise. As Andreas says, one can remove one's country from Bitcoin but one cannot remove Bitcoin from that country.
Regulators are rulers. The world seems to believe we need rulers. Bitcoin and other decentralized blockchains show how untrue this is. The code is the ruler and all that occurs takes place according to the code.
Is this for everyone? Of course not. This is where choice comes in. Some are happier operating in a system where everything is controlled. Yet, for those who prefer freedom, there is now an option available.
That does not mean that entities are not trying to instill themselves in the process. There are many who want to be intermediaries even though there is no need for them. They feel people need have their keys held for them. After all, people cannot be trusted with something like that.
This is creating a hybrid system where the early crypto companies are moving into the role of controllers. They seek to recreate the present system in crypto. This will, of course, fail as the industry expands and grows.
Bitcoin and every other decentralized blockchain does not need any of this. Banking is not the first casualty of cryptocurrency. Rather, the first one affected is regulators. Plain and simply, they are not needed.
This does not stop them from trying. Unfortunately for them, the problem was solved. Blockchain provides a transparent, immutable ledger of all transactions which the prospect of double spending is eliminated. This is an enormous breakthrough when you think about it.
We are going to see this tug-o-war take place over the next few years. Those in power will do all they can to keep exerting it. At the same time, as these systems grow in numbers, the power will be diminished.
Blockchains are set up with rules. What is frustrating to the establishment is these rules do not require rulers.
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