A decentralized project is a project in which there is no third party – an administrator or manager who has the ability to single-handedly make decisions and influence the fate of the project.
If you are not new to cryptocurrency, then you can skip the next paragraph, it is for beginners:
The definition I wrote above may not reflect all the clarity it should represent, so let’s get it straight in simple terms.
This definition tells us that decentralization is a method that allows you to solve almost any problem, without the help of qualified solutions from high-ranking people. That is, it works by itself, does not need daily monitoring, etc. The simplest example is the well-known to us – bitcoin. This coin is decentralized because it has no top managers.
Let’s digress a little from the topic of decentralization and turn to the political section of law (it should be studied in 1-2 courses in higher educational institutions):
We are looking for “The highest federal bodies of state power .. (country) ..” and we will see that in democratic countries, state power is divided into 3 branches:
Each branch of government performs its own functions, is independent and does not interfere in the affairs of the other.
Hmmm… Does that remind you of anything? Don’t you think this is a bit like a decentralization process? It is with decentralization that the dominant powers are divided, thus, power does not remain in someone’s hands, but for example, with the whole community.
You probably think that if there is decentralization, then there is something opposite, and you will be right. The reverse of decentralization is centralization.
This essentially means that all power is in one person, body, the team, in general, in one hand. I can’t say 100% that this is bad. Both decentralization and centralization have their pros and cons. The most important thing here is to make decentralization where it will mean nothing, and centralization where its shortcomings will be extremely insignificant or completely disappear.
But there is one problem – the problem of power. Surely you have heard from everywhere nasty things about the power of the country, about those who work there, and so on. We will not go into politics. But we can safely say that this is now a problem.
And when a lot of power is concentrated in one hand, all decisions of this person can be directed solely for his benefit. This ruling body can create / destroy such laws that the people would not like. But alas, not in all countries the authorities listen to the people (yes, in democratic countries too).
There is one option for solving such a socially important problem – decentralization.
What if the management of state power is really transferred to the people, as is usually prescribed in the constitutions?
Then we, you, each person will be able to vote for the solution of this or that socially important problem. Any decisions will indeed be decided by a majority vote. Given that this is the age of technology, I am convinced that everyone can cast their vote online.
Why could this drastically change the world?
I will answer you. Thanks to the decentralized blockchain, it is possible to completely abandon the high-ranking officials who decide the issues of the people.
Important points, such as the adoption of new laws, the adoption of new regulations, changes in constitutions, and in general, any important public issues can be uploaded to the blockchain, where everyone can independently vote “Yes” or “Against” for it.
Since a decentralized blockchain is a complex system consisting of blocks, where each subsequent block is linked to the previous one, which means that such a system cannot be hacked.
Thus, no decision will be falsified. And most importantly, the people will really get the power!
Now let’s look at another question: will this work?
Sure! Before we look at this with an example, let’s talk about what Decentralized Autonomous Organizations (DAOs) are: an organizational form in which the coordination of participants’ activities and resource management occurs in accordance with a pre-agreed and formalized set of rules, which are automatically monitored…
That is, in simple words, this can be explained by the fact that a certain organization is being created, which in the future will solve certain problems, and in the development process it gradually begins to become decentralized. But the rules created during development remain and are already executed automatically without the help of third parties.
An example of such an organization is the Streemit service, a social network that, let’s say, works like a DAO.
By the way, it is somewhat similar to reddit (in terms of the fact that you can publish articles, photos, general content), but differs in that Streemit is created on the basis of blockchain technology and has its own cryptocurrency. Users of this service earn on publications that the community evaluates in the form of likes, comments, etc.
This project is also moderated by the community itself.
Let’s now look at another example:
We can get acquainted with such a project as Free TON, which is completely decentralized from the very beginning of its appearance. Nobody can destroy it, hack it, disable it, delete it, etc.
As I said, each new block is linked to the previous one and makes this blockchain completely invulnerable.
As with the Streemit example, in the Free TON project, people receive rewards in cryptocurrency (in this case, TON Crystal) for helping to popularize and improve the project.
We have our own forum where contests are created to spread the project in many directions. A jury is assembled, which is nominated by the community, and in the future they vote on who to pay remuneration for good work, who does not.
Free TON is under development, so now not everyone can vote, but those whom the community deems necessary. Soon, a global change in the root of the project is expected, which will affect the voting process for a particular competition / proposal, contributing to the development of this project. Thus, everyone who has a TON Crystal coin will be able to participate in the voting, thereby leaving their independent assessment.
These 2 examples, which I gave above, show how effective horizontal structuring and automation of ecosystems of any social and financial projects (and possibly even political ones in the future)
You see what opportunities such organizations provide. We can say that Decentralized Autonomous Organizations are our future, because it is thanks to them that we will be able to achieve real freedom of speech, freedom of thought, freedom of voice and freedom of life.
~ Thanks for reading ~