If Men Were Angels: Decentralization’s Silent Comeback

Over time, the country underwent changes, and so did its media. What is now known as mainstream media came to be recognized as the “Fourth Estate” – a separate, crucial entity that checks the power concentrated in the center. Lately, we’ve seen an unofficial “Fifth Estate” arise with the growth of citizen journalism, which has continued this shift towards more decentralization.

Today, it’s clear that there’s an exceptional level of skepticism towards both governments and the media, as reported by the Pew Research Center and others. Given our previous progress, one might wonder how we arrived at this point.

The hidden hand of central control

Our system of checks and balances was created to prevent the concentration of power in a transparent fashion, handling obvious concerns in an equally open way.

However, what we’re dealing with now is not just the visible form of centralization, but also its insidious counterpart that I refer to as ‘hidden centralization’. This phenomenon subtly creeps in, often unnoticed, and it frequently coincides with the advent of new technologies. It requires our attention too, for its effects can be profound and far-reaching.

Consider, for instance, machine learning and artificial intelligence. They both generate results from intricate data analysis. Capable of handling vast amounts of information, they identify connections that surpass human understanding, and subsequently act upon these discoveries without any human intervention. These technologies have left the world awestruck by their rapid progress, yet many people fail to witness this evolution directly as much of it happens within closed corporate environments. This implies that the potential danger posed by centralized AI might become imminent before we fully comprehend its true extent.

Ponder over this modern marvel, the internet – the most groundbreaking invention of our era and the most dispersed technology known to man. The internet has empowered billions globally by offering them a voice. Over time, it spawned communication platforms such as forums and message boards that connected individuals and provided them with a space to interact.

However, the accumulation of these communication platforms, particularly social media, has significantly shifted the balance in many instances. For instance, the U.S. administration is contemplating a ban on TikTok, which boasts 170 million daily users within its borders. Is this move driven by concerns over the latest dance trends or could there be more sinister intentions? Conversely, in the U.K., the government has hinted at imprisoning citizens based on their online activities. In both scenarios, it appears that the reach of centralized authority is encroaching upon fundamental rights in a manner that might not have been feasible before the rise of these technologies.

Although it might be hard to notice, this hidden centralization is indeed shaping your life, dear reader. The freedom you once had to create an online identity of your choice on any platform is now at risk. Similarly, the liberty to openly express your views is becoming more and more challenging. It was unimaginable in the past, but today, it’s a part of our lived experience.

Ponder on this: Why isn’t there a barrier preventing tech giants like Apple or Google from erasing your personal data such as memories or conversations? Could the hidden concentration of power in these entities grow more problematic? We’ve merely caught a small glimpse of its catastrophic potential with the Crowdstrike incident, one of the largest IT breakdowns ever that affected 8.5 million Windows devices. What safeguards are we missing to prevent an even more significant centralized system failure?

Luckily, the tools to counter these alarming trends are now within our reach.

Decentralization as democratization

In simpler terms, decentralization refers to the distribution of control, responsibility, and decision-making across various parts rather than concentrating it in a single entity. The internet has given rise to a potent instrument for decentralization – blockchain technology. This innovation allows for large-scale existence of decentralized structures, ensuring verification, security, and transparency.

One simple way to grasp blockchain’s impact on decentralization is by thinking about the concept of checks and balances. In centralized systems, these checks happen “from above” with individuals verifying each step based on a need-to-know basis. On the other hand, in decentralized systems, checks and balances take place “from below,” where a token serves as a source of truth within the blockchain network transparently. This shift has profound implications, as blockchain won’t just enhance existing checks and balances; it will eliminate those that are no longer required. Regrettably, this efficiency may lead to job losses, but the importance of decentralization transcends any single government or corporation.

It will also benefit far more people than it will temporarily hurt. Money transfers and remittances are possibly the best real-world example of this. Last year, Venezuelan migrants sent $5B home, making up 6% of the country’s GDP. But with transaction fees as high as 7% across traditional bank and retail businesses like Western Union, decentralized solutions that use blockchain technology offered a much more attractive alternative that’s significantly cheaper and quicker. Venezuelans took full advantage of this, and nearly $500 million of that $5 billion was sent home via blockchain. This resulted in more money reaching individuals in need rather than being rerouted to centralized entities making profits off transfers.

A crossroads

As an analyst, I’ve observed throughout history how technology has often dismantled established centralized systems. Today, in this era of diminishing trust in these traditional institutions, we find ourselves at a fascinating crossroads. We are now confronted with a compelling alternative, and while it’s essential to maintain a balance between the familiar centralized structures and the innovative decentralized solutions emerging, the decision ultimately rests with us.

In examining today’s societal panorama, with power being unequally held and increasingly centralized in key sectors, a crucial query to ponder is:

Does it have to be this way?

Please take note that the opinions presented in this article belong solely to the author, and may not align with those held by CoinDesk Inc., its stakeholders, or affiliated entities.