Insights

What is decentralization?

This is inspired by the writing of Vitalik with some of his excerpts. I urge you all to read the original article to understand his logic. It will help you form a mental framework around how to think about decentralization.

Vitalik categorizes the definition of protocol decentralization into 3 components. He is a very articulate writer so I have here his points listed verbatim:

Fault tolerance — decentralized systems are less likely to fail accidentally because they rely on many separate components that are not likely.
Attack resistance — decentralized systems are more expensive to attack and destroy or manipulate because they lack sensitive central points that can be attacked at much lower cost than the economic size of the surrounding system.
Collusion resistance — it is much harder for participants in decentralized systems to collude to act in ways that benefit them at the expense of other participants, whereas the leaderships of corporations and governments collude in ways tha...

 


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