Why Decentralization Matters

https://medium.com/@cdixon/why-decentralization-matters-5e3f79f7638e

The lesson is that when you compare centralized and decentralized systems you need to consider them dynamically, as processes, instead of statically, as rigid products. Centralized systems often start out fully baked, but only get better at the rate at which employees at the sponsoring company improve them. Decentralized systems start out half-baked but, under the right conditions, grow exponentially as they attract new contributors.In the case of cryptonetworks, there are multiple, compounding feedback loops involving developers of the core protocol, developers of complementary cryptonetworks, developers of 3rd party applications, and service providers who operate the network. These feedback loops are further amplified by the incentives of the associated token, which — as we’ve seen with Bitcoin and Ethereum — can supercharge the rate at which crypto communities develop (and sometimes lead to negative outcomes, as with the excessive electricity consumed by Bitcoin mining).The question of whether decentralized or centralized systems will win the next era of the internet reduces to who will build the most compelling products, which in turn reduces to who will get more high quality developers and entrepreneurs on their side. GAFA has many advantages, including cash reserves, large user bases, and operational infrastructure. Cryptonetworks have a significantly more attractive value proposition to developers and entrepreneurs. If they can win their hearts and minds, they can mobilize far more resources than GAFA, and rapidly outpace their product development.