'Everyone here has that sense that right now is one of these moments when we are influencing the future.' - Steve Jobs
Can you feel it, too?
While the world is astonished at self-driving cars, 3D printers and crypto currencies, behind that huge digital progress there is evolving a fundamental change. One of the essential consequences of digitalization is the opportunity to decentralize technology, economy and society.
It seems that technological innovation will radically change our general unterstanding of institutional organization. That will not only affect governments, it will invade any existing political, financial, economical or social power structure.
Decentralization is not only a trend, it´s probably the next evolutionary step.
The Concept of Centralization
In order to understand why decentralization has become that important to us, we probably should know which were the main reasons for centralization during the past centuries.
The main and initial driver of centralization was the idea to bundle forces.
During the past centuries there were big political, economical and social instituions arising, following the common belief that 'more people can achieve more than one'. In order to improve the overall outcome these institutions bundled power.
However, during the past years people have become aware of the fact that centralization also provides a lot of negative effects such as:
- High coordination and management effort (such as burocracy)
- Vulnerability (centralized risk)
- Lack of integrity (e.g. in hierarchically structured enterprises)
- Abuse of power and loss of democratic interests (governments)
So why has centralization survived so long?
There was no alternative. Probably most of the incredible accomplishments wouldn´t have been achieved otherwise. The centralization of power provided more advantages than disadvantages. Thinking about post-war periods for instance, bundling forces - thus bundling power - was essential to rebuild any kind of economical structure.
Now, thanks to the technological progress, globalization, merger of responsibilities, and the non-existence of any borders, a new mindset has evolved.
That is exactly where technology - mainly digitalization - joins.
Thanks to the implementation of these new technologies we will be able to use the positive aspects of centralization (such as the community concept and networking) without tolerating their negative points.
Even if the concept of centralization has lost its glory, it still provides many exemplary approaches such as: mutual trust.
Independently of the fact that exactly that one has failed in many ways (just thinking about today´s banking systems), it is still valid and worth being pursued.
Especially newly introduced systems require a high degree of acceptance, thus faith.
The Concept of Decentralization
There are uncountable definitions of 'decentralization'.
Here is one that I considered suitable in the present context: 'Transfer of decision making power and assignment of accountability and responsibility for results. It is accompanied by delegation of commensurate authority to individuals or units at all levels of an organization even those far removed from headquarters or other centers of power.'
Source: http://www.businessdictionary.com
Decentralization promotes individual knowledge, consciousness and responsibility in a social fabric where everybody theoretically has the same degree of influence (power).
Decentralized social media networks, for instance, enable and stimulate mutual interaction and exchange of ideas without censorship. While the creation of information (value) is a commonly shared goal, its evaluation is subjective, thus secondary.
From a completely neutral point of view, every thought shared in a decentralized environment would have the same degree of importance when entering the system, which means the same chance of opportunity.
If decision making power, assignment of accountability and responsibility for results were transferred from a centralized holder back to the individual, what impact would that have on our social understanding?
And what would this new decentralized system expect from its participants in order to fulfill its overall sense?
Social requirements of decentralization
A decentralized eco-system - independently if politically, economically or socially intended - requires a certain 'commitment' and 'contribution' from its participants.
Yes, even (or especially) in a decentralized environment without centralized regulation there exist some non-written agreements (rules).
Here is what decentralized organizations need from their players:
- Personal responsibility
- Self-management
- Integrity
- Loyalty
- Ambition
Are we ready for that?
I wonder what happend if we got out on the streets and asked normal people if they´d like to give up their banking account in order to manage their financial issues on ther own in a decentralized system. How many would say that they´d rather favor servitude in tranquility over self-government in motion?
Independently of the weaknesses we have discovered in centralized solutions, DELEGRATION OF RESPONSIBILITY IS COMFORTABLE.
Change needs us to step ouf of our comfort zones, letting go the usual in order to embrace something completely new.
Decentralization requires a paradigm shift and EDUCATION.
Besides all the technological progress, celebrated digital milestones and innovation, we need to understand that, first of all, any type of innovation needs to break barriers - especially built through prejudices.
Just think about the internet and how many doubters needed to be convinced until it experienced the great breakthrough. The same is going to happen with crypto currency, for instance.
Decentralization is not a technological evolution, it´s an ideological evolution enabled through technological progress.
That is actually the no. 1 reason why evolutionary steps can´t be done over night.
It will take us some more years - maybe even decades - to disband the established and introduce the new.
If you were asking yourself why the whole world seems to be turned topsy-turvy lately, why our known social fabrics are overbalanced, why the old and established seems to be constantly challenged or why we feel kind of instable, here is one possible answer:
There is no doubt about the IF just about the WHEN.
I hope you enjoyed the read.
Marly -
PS: Don´t forget to follow #theeverydayproject: The Everyday Project
Picture source:
Title: http://www.huffpost.com/
Digitalization quote: http://4.bp.blogspot.com/
Group at the beach: http://www.pinterest.com/
Accountability quote: http://www.pinterest.com/
Chinese proverb: https://pbs.twimg.com/