Decentralization and economies of scale

Decentralization & economies of scale

Author: DCinvestor, Source: Author’s Twitter @iamDCinvestor; Translation: MetaCat

Over the past 30 years, due to the development of personal computers and the consumer internet, various aspects of the world have become more centralized. Although we hope that AI (Artificial Intelligence) can achieve decentralization through open source, it seems more likely to further centralize.

Looking back at the history of the internet, it is worth noting that: centralization is not necessarily caused by closed access to technology, but by economies of scale. However, economies of scale cannot be achieved until every individual has access to internet-enabled devices.

Economies of scale have had a profound impact on the retail and other service industries. At the same time, we have also seen the emergence of economies of scale in the management field, which is not entirely driven by technology, but more by capital.

• ENS Governance Activity Statistics and Related Indicators
• In-depth Analysis of Full-Chain Game Core MUD Engine and World Engine
• Evening Must-Read | Layer2 attack on the city strategy pool, Ethereum’s king of public chains throne is more secure

Imagine how AI will affect the existing landscape?

Yes, open source AI models will allow us to maintain autonomy over some important daily interactions in life, but it will only lead to “even greater” economies of scale, which may require self-restraint to fully function.

I believe there is a misconception among people: it is not just a matter of technological accessibility, but a question of the power of economies of scale. However, economies of scale will inevitably occur unless regulated. But governments obviously won’t do that because it is easier to regulate a few people than the majority.

So, can decentralization play a different role?

Yes, decentralization gives rise to a decentralized economy, which is not possible with other technologies. However, decentralization still needs to compete with the natural efficiency of economies of scale, which is not easy, but at least it can win in some key areas.

As a proponent of decentralization, I believe that decentralization will never be the challenger to centralization. Historically, centralization is more convenient, and that is also the choice of the majority. What I hope is that we can provide it for those who may want it.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!