Part 5/16:
While decentralization offers resilience, it also introduces inefficiencies. Large-scale decision-making in flat systems can be slow, challenging the traditional expectation that centralized hierarchies are the most efficient. However, the advent of network protocols—like blockchain technology—has revolutionized this paradigm.
Network Protocols and the Scaling Power of Flat Systems
The breakthrough enabling large-scale decentralized decision-making is the development of network protocols that allow millions of participants to coordinate effectively without hierarchical control. Examples include Bitcoin’s blockchain, where consensus is achieved through distributed voting every ten minutes, and the internet, which democratizes information dissemination.