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Produced by WJ ｜Vernacular Blockchain (ID: hellobtc)
Among the common misunderstandings of many people about the blockchain , there is one: Because the blockchain requires decentralization, and the main body of supervision is a huge center, the two cannot coexist.
On the surface, it seems to make sense to say this, but it is actually problematic, because decentralization is not about avoiding the center, but emphasizing the fairness and freedom between many centers, regardless of size.
01
Does decentralization mean not to be central?
In fact, since the concept of decentralization was put forward, it has never thought about eliminating the center or depriving the center of its rights. Regardless of whether it is Bitcoin or a latecomer, their purpose is: not to let everything be a powerful center controlled by a few people, not to exclude or obliterate the center.
A decentralized system is a distributed network composed of many large and small centers .
In Bitcoin’s proof-of-work mechanism , the large computing power mining pool is actually a large center. The large center and all small miners must abide by the same rules, work more and get more, to avoid the occurrence of a large center controlling the entire system leading to other small miners. Unfair distribution.
Therefore, under the conditions of a fair mechanism like this in the future, after being recognized by more and more people, large and small organizations, and even some countries, can freely become a member of countless nodes and be treated fairly by the system.
Therefore, decentralization and central institutions can coexist.
02Decentralization
challenges regulation?
When many people think of a decentralized network, it seems that everyone is equal, and no one can do whatever they want. This is a bit like in the early days of the development of the Internet, many people thought: "No one on the Internet knows who I am, and no one knows anything I just say on the forum."
Most of the time, supervision is actually lagging behind. The development of science and technology is very fast. No one knows what its direction is. Supervision can only follow the pace of development and do things that can maintain social stability without hindering the development of science and technology.
Therefore, many people think that decentralization challenges regulation, but it is actually difficult to exist in the future.
For example, Bitcoin network transactions are completely open and transparent, and it is more convenient to trace back than traditional currencies such as cash and gold. Even if it is an anonymous currency, there is a day when it needs to be realized. As long as the supervision has blocked the main channels of realization, it is enough to follow the rules.
So, in any case, supervision will keep pace with the times. Don't think that decentralization can really do whatever you want. Of course, the development of blockchain does pose a huge challenge to the insufficiency of some existing laws and regulations and regulatory technology.
03
Postscript
Perhaps in the near future, the innovation of blockchain will not only make supervision methods more efficient, but also fairer and more credible. At that time, we may find that, just as the Internet has made the world more free and equal, the decentralized value network has allowed for the upgrading and evolution of supervision, and human society has taken a big step forward.
Do you think decentralization is in conflict with central institutions and supervision? why? Welcome to leave a message in the message area.
This article is reissued from an old one with slight adjustments
Original link: Is there a conflict between regulation and decentralization, and can the two coexist?
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