Firstly, we may need to clarify what blockchain is.
Thirteen years ago, inspired by the vision of decentralization in the cypherpunk community, Satoshi Nakamoto penned the whitepaper for Bitcoin, creating a "pocket computer" for currency — a massive social experiment. Today, Bitcoin ranks eighth in global assets, bridging the gap between traditional and digital realms.
Then came Vitalik within the Bitcoin community, who transformed this currency pocket computer into a Turing-complete, open system, revolutionizing a trust-minimized financial system. With the successful experiments of decentralized financial protocols like Uniswap, Ethereum's market cap is now approaching that of silver, ranking 15th globally.
So, the ledger technology in Bitcoin is referred to as blockchain. One could say that Bitcoin was the first epochal application of blockchain, with Ethereum representing the new generation. Thus, blockchain appears as a distributed ledger technology, at least potent enough to reshape the financial system.
Beyond just blockchain technology, the underlying philosophy is decentralization. Simply put, when we focus on blockchain, we are stepping into the realm of decentralization.
What is Decentralization?
Decentralization can often be misunderstood if merely seen as a technological term, easily confused with distribution.
Decentralization varies across different levels: system technical architecture, economic mechanisms, political governance, and even logical attributes. Technologically, it's about minimizing the problems caused by a single point of failure. Economically, it concerns how value is distributed among participants. Politically, it questions whether control over a system is centralized. And logically, it determines if components can operate independently once separated.
In essence, decentralization isn't about removing centers but reducing reliance on "trust" over the long run.
Why Choose Decentralization?
The apparent advantages of decentralized systems include enhanced security, fault tolerance, and resistance to attacks and collusion. This premise has been proven by the current blockchain and cryptocurrency markets in the financial sector.
The revolution of decentralized systems is just beginning. Over the past 13 years, not only have we built better financial infrastructure, but we have also witnessed the practical feasibility of a new theoretical system. From this perspective, there's every reason to believe in the broader applicability and value of decentralized systems in the future.
Potential Possibilities of Decentralization?
- Advanced Digital Financial Systems: This seems likely, given our tools in information technology regarding human-computer interaction. Many individuals and organizations foresee and are realizing this potential.
- A New Dimension of Decentralized Info-Tech: Whether it's termed as Web3 or decentralized internet computing, this integration of decentralization theories into new-dimension computing systems, especially in the internet domain, is gaining traction.
- Reforms in Decentralized Economic Entities: Paradigmatic reforms from the cryptocurrency economy provide numerous insights applicable to both digital and conventional economies.
- Emergence of Decentralized Governance Structures: Within the Ethereum ecosystem, we've witnessed the rise of many such governance structures, signaling a shift toward rule-making coded into systems.
From a societal perspective, based on these possibilities, decentralization could potentially break barriers of the previous industrial era, influencing our society, ethics, culture, and more. Could it provide a new direction for capitalism or rejuvenate socialism? Might it redefine our ethics and spirits in the age of desire or foster a digital-native culture? Regardless of the odds, we're likely to witness epic changes in our lifetimes.
Whether or not we're involved in this industry or own Bitcoin, we're already amidst this transformation.
Historically, progress hasn't been linear but rather leaped across dimensions.
In some ways, we might be at the prelude of another dimensional civilization. Thus, focusing on blockchain isn't just about a technology or industry.
It's about choosing a new possibility, a new significance.