Nice article and very relevant to the current situation.
Topic: [2016-01-26]Decentralization: The Death or Salvation of Bitcoin? (Read 228 times)
January 26, 2016, 12:22:37 PM
Since its inception, Bitcoin’s main selling point has been its decentralization. Bitcoin claims to solve an age-old problem: how do you transfer value between strangers without a trusted, centralized, third-party? Early adopters have embraced Bitcoin as a superior alternative to centralized systems, which have shown themselves often to be unworthy of the trust given to them. However, Bitcoin is now facing an existential crisis that tests its decentralized nature.
The ongoing blocksize debate – which is about so much more than the block size – reveals fundamental rifts between major players in the Bitcoin ecosystem. Who decides Bitcoin’s future? Core developers, miners, merchants, node owners, and regular users all have a legitimate stake in Bitcoin, and all in some way are involved in charting the future of the cryptocurrency. That is the essence of decentralization – no one person or entity decides Bitcoin’s direction. But what happens when these parties fall into opposing factions? The temptation arises to create a central authority who can make a final decision.
This temptation can be very strong for those who only give lip service to decentralization without truly understanding it. One thing that needs to be remembered when it comes to decentralization: Decentralizationit can be very messy. One of the great appeals of dictators – the ultimate central authorities – is that they bring order. With one person in charge, so the argument goes, there is no need for ugly debates and fights over policy. Just let the dictator decide. A decentralized process has no such “luxury” (thankfully). But this means that disagreements that touch fundamental issues – like whether Bitcoin is primarily for settlement or payment – can cause the fight to get downright nasty. At this point, the opponents of decentralization become emboldened and argue that decentralized systems are inherently doomed for failure.
But what people often forget in these messy debates is that this is when decentralization is most important. If everyone is in agreement, there is no desire or need for a centralized authority. It is only when there are fundamental disagreements that a decentralized system is put to the test.
https://news.bitcoin.com/decentralization-death-salvation-bitcoin/
The ongoing blocksize debate – which is about so much more than the block size – reveals fundamental rifts between major players in the Bitcoin ecosystem. Who decides Bitcoin’s future? Core developers, miners, merchants, node owners, and regular users all have a legitimate stake in Bitcoin, and all in some way are involved in charting the future of the cryptocurrency. That is the essence of decentralization – no one person or entity decides Bitcoin’s direction. But what happens when these parties fall into opposing factions? The temptation arises to create a central authority who can make a final decision.
The Appeal of a Central Authority
This temptation can be very strong for those who only give lip service to decentralization without truly understanding it. One thing that needs to be remembered when it comes to decentralization: Decentralizationit can be very messy. One of the great appeals of dictators – the ultimate central authorities – is that they bring order. With one person in charge, so the argument goes, there is no need for ugly debates and fights over policy. Just let the dictator decide. A decentralized process has no such “luxury” (thankfully). But this means that disagreements that touch fundamental issues – like whether Bitcoin is primarily for settlement or payment – can cause the fight to get downright nasty. At this point, the opponents of decentralization become emboldened and argue that decentralized systems are inherently doomed for failure.
But what people often forget in these messy debates is that this is when decentralization is most important. If everyone is in agreement, there is no desire or need for a centralized authority. It is only when there are fundamental disagreements that a decentralized system is put to the test.
https://news.bitcoin.com/decentralization-death-salvation-bitcoin/
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