The Misunderstood Blockchain and Centralized Platform Traps

The Misunderstood Blockchain

The role of decentralization is often misunderstood. Originally, decentralization originated from the crypto punk movement, which was started by a group of non-conformists aiming to achieve individual autonomy through encryption. With blockchain, they are closer than ever to the ideal.

Others praise decentralization as a means of resisting government scrutiny and regulation. In their view, regulation itself is a kind of bureaucracy, and the act of regulation is not only outrageous, but also meaningless. This view is common in all walks of life, but these reasons are not the value of decentralization. In fact, this misunderstanding mainly comes from Satoshi Nakamoto himself. As we all know, he left such a quote in the creation block ‘The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.’

This quote was the headline in The Times newspsaper at the time. It is widely interpreted as an attempt by Mr. Nakamoto to mock the fragility of the banking system. Moreover, according to his friends, Mr. Nakamoto himself is a libertarian who distrusts government and banks.

Humanity’s oldest and most powerful fear comes from the unknown.

When the concept of decentralization was first proposed, even though it was just a developing technology, national regulations were wary because of some inherent biases and ignorance about technology. The conservative and prudent attitude of the government has greatly influenced the landing and development of blockchain technology. Currently, Germany is the first country in the world to recognize bitcoin. With the development and the popularization of blockchain technology, countries may adopt a more tolerant attitude towards blockchain technology in the future.

Centralized Platform Trap

Blockchain is known for its security, reliable, extensive sharing and traceability. After years of observation, researchers have found that the lifecycle of centralized platforms is predictable and consistent with the Logistic growth model.

‘When a species moves into a new ecosystem, its Numbers change.If the species starts out smaller than the maximum environmental capacity, the number increases. If the species in this ecosystem have natural enemies, food, space and other resources are not sufficient (not ideal environment), then the growth function satisfies the Logistic Equation.After fitting, the image is S — shaped.’

In the early operation of the centralized platform, the platform will do everything possible to attract new users and third-party institutions to enhance its value. With the development of the platform, the power of the centralized platform grows steadily compared with users and third-party institutions. In order to improve the profits, the simplest way is to obtain data from users or draw proportion from third-party institutions. Rules are opaque and data unsafe.It is not only third-party institutions that refuse to continue investing in central platforms, but also users’ personal data breaches happen from time to time. In the future, the disadvantages of these central platforms will become more and more prominent, which can be called centralized platform trap.

Decentralized Safeguards

Someone with optimistic alttitude toward blockchain prospects, but ignore a premise. Is decentralization necessarily beneficial? Some argue that decentralization results from systems that tend to be more centralized without checks and balances and oversight. People are forced to submit to centralized institutional design.

To solve the disputes brought by centralization system, decentralization provides a new idea. Taking the international trade market as an example, the international commodity wholesale market has increasingly highlighted the problems such as information asymmetry, low efficiency, high transaction cost and lack of credit, which have seriously restricted the further expansion of transaction scale. There is still a lot of room for improvement in the future market in terms of optimization and integration, standardization and traceability system construction. Therefore, there is an urgent need to use blockchain technology to accelerate the solution of the problem.

The key to the combination of international trade and blockchain lies in whether the blockchain can be used to establish a widely recognized quality and safety standard system for the seafood trade of countries along the belt and road, which is the first problem to be solved. At present, each country’s security standard system is isolated from each other, and blockchain cannot be tampered with and widely shared. Through the blockchain security system, enterprise qualification can be effectively audited on the chain, and electronic bills can be deposited into the blockchain to meet the demand.

Trustworthy and Reliable Intelligent Autonomous Systems