Babbitt Column | Three Elements That Limit Decentralized Economic Formation and Blockchain Technology

In the article "Restricting the three major elements of decentralized economic shaping and blockchain technology development" , the author once mentioned that the important significance of blockchain technology is that the rights are greatly subsided and many industries Under the circumstances that the decentralization of the pattern and the brand effect of some centralized institutions are no longer needed, a bridge of trust is established between the providers and consumers of the service, so that they can smoothly connect and trade. The way to build trust is to record the information of the relevant service provider on the blockchain.

But on the other hand, according to the inference of why "Decentralization is the general trend, and de-intermediation is not" : Although in theory, the ultimate in "decentralization" is to sink power into the hands of every individual. But in reality, a lot of power can't sink indefinitely, but there will be a bottom line, and in the horizontal view, it shows a limited degree of decentralization (that is, people often say "multi-centered") . Undoubtedly, this situation has limited the decentralization of many economic sectors and the space for blockchain technology. The reasons for this phenomenon are multifaceted and currently appear to include three main factors:

One is the constraint of hardware conditions. The exercise of many powers is often inseparable from the assistance of the corresponding hardware, which is relatively well understood. Taking agriculture as an example, since the cultivation and supply of agricultural products cannot be separated from many facilities including land and fertilizer, the supply of products can only sink to the hands of every rural resident who has land, but not Sinking to those urban residents who have no land, the latter can only grow garlic in their own pots.

In the energy industry, the combination of “solar photovoltaic panels + residential roofs” allows the supply of electricity to sink into the hands of every rural resident, while many urban residents live in dense honeycomb apartments. There is no exclusive roof of his own, so it is not related to this power. That is to say, for rural residents, because there are many agricultural products and electricity suppliers within their radius of activity, the supply of these goods is often decentralized, and they can theoretically choose any one. Suppliers are docked, and for urban residents, because there are not many suppliers within their radius of activity, the supply of these products is relatively centralized, and they can only be from the intermediary responsible for the match (such as Fresh supermarkets and electricity sales companies) buy goods.

The second is the shackles of software skills. Although the configuration of hardware is an important basis for the sinking of service rights, it is also important to know how to use the software skills of these hardware. For example, in the above agricultural case, even if many urban residents moved to rural areas and have their own land resources, it is foreseeable that the supply pattern of local agricultural products will not be more decentralized because of their arrival. Because most urban residents do not have the relevant agricultural skills, let alone export.

Another example: in the computer industry, although personal computers have become the standard configuration of many families, it does not mean that everyone can program software to develop software, thereby breaking the monopoly of Internet giants on technology products, because the code is still A relatively small skill. That is to say, the right to provide software has not yet achieved a significant sinking, and the current pattern in this field is relatively central.

The third is the shackles of morality. In addition to hardware equipment and software skills, the ethical standards of service providers are also important in some areas that involve the immediate interests of the parties involved (such as life and asset security). For example, in the field of shared transportation, despite the current popularity of cars and driving schools, and the existence of road conditions APP, many drivers have the basic skills of taxi drivers, but this does not mean that the right to provide passenger services can be Sinking in the hands of everyone who meets these conditions, if the driver of the passenger transport is not correct, it is likely to pose a serious threat to the personal safety of the passengers; in the field of investment and financing, if the institution applying for financing does not have a good Reputation, in the end, it is likely to squander the investors' funds in the name of "early project risks"; even simply donate money to run, causing "the profit of your fancy, people to see your principal" Farce.

Figure: Excessive decentralization of some power is destined to be a mistake


Based on the above analysis, it is not difficult to see that because the popularity of hardware devices and software skills in different industries varies widely, and the moral requirements for power users are different, therefore, the degree of subsidence of different powers often varies. The degree of decentralization that can be tolerated is also different. This difference is mainly reflected in three aspects:

First, different industries have different degrees of decentralization. For example, the degree of decentralization in the education industry is stronger than that in the medical industry.

Second, the same industry, but the decentralization of different links is different. For example, in the power industry, the degree of decentralization of power generation is stronger than that of transmission.

Third, the same link, the degree of decentralization at different points in time, such as the entertainment industry, the degree of decentralization is now stronger than twenty or thirty years ago.

Figure: With the popularity of children's programming, the future provision of software services will inevitably be more decentralized than now.


It should be said that it is helpful to recognize the many factors affecting the degree of decentralization and the status quo and future of decentralization of all walks of life. It is of great help to correctly understand the “decentralized economy”. See, many people have been caught up in this problem. For example, when the word "decentralization" is driven by the concept of blockchain, it is believed that this technology can carry out all aspects of all industries. Decentralization, and the centralization giant has entered the countdown stage, and it is just around the corner. After the blockchain concept is cold, it is considered that the decentralization is pure speculation, and all walks of life return to the centralized pattern. It is the right way. From this, there is a funny situation in which "the front foot loves freedom and the hind foot advocates authority". The reason for this "extreme extreme" situation is ultimately due to the lack of an accurate understanding of the term "decentralization".

However, although the current public opinion on “decentralization” is sometimes biased, historically, many new concepts have experienced such an “intelligible” adaptation process over time. People's perception of the “decentralized economy” will become more mature with the combination of theory and practice. In this subjective consciousness of awakening and the objective environment of continuous development, the overall center of social economy sinks. The decentralization of various industry patterns and the increasing role of blockchain technology as a trust connector will be an irreversible trend.

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