Decentralization-How are we Building a Free World?
The real core innovation of cryptocurrency is its decentralized structure. With no central management and repository of information, the ecosystem of Bitcoin becomes more reliable as there is no central point of failure as well. Susceptibility is dodged when there are no specific people working on some specific machines within some certain premises.
Such sense of decentralization may sound like a myth to a cynical observer but, this overstated feature of the system is proven through impeccable performance and immaculate execution. Critics often quote the explosion of Mt. Gox, an organization crashed after having 70% of the world total bitcoin transaction in 2014, as an example of the way how people are ripped off, defrauded and spied.
So does that make the claim of decentralization to be wrong?
No!!
Now there is a substantial need to understand the difference between the market-based centralization and the coercive centralization. Cryptocurrency is entirely based on the former one.
Coercive centralization is the one we normally see in the legacy financial industry. This is how the fiat currencies of the entire planet are controlled by the banks that are sponsored by the government. This system has the power to hurt the stakeholders if someone disobeys.
On the other hand, the market-based centralization is a fundamentally different concept. Its ability to opt out makes it different. Yes, Blockchain is a centralized entity but, you never need to use Blockchain to use Bitcoin. One never to take the prior consent of a third party to hand over the trade coins to a friend. But, a fiat user is always bound to utilize a central service.
Blockchain makes coercion impossible. Now comparing the model of Blockchain to the traditional model of banking would yield that customers don’t have to use a bank anymore to participate in the meaningful financial system.
In this way, it quite evident that any centralized entity within the sphere of crypto-world could exist strictly at the pleasure and consent of the users.
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