Tech people often see blockchain as something pure and undamaged. Even the ones who bash Bitcoin praise blockchain, as if it’s something beyond.
And in a way it is. Blockchain can be used for various cases besides crypto currencies. But on the other hand blockchain is Bitcoin same way WordWideWeb is the Internet. As the creator of Bitcoin Satoshi Nakamoto created both Bitcoin and blockchain at the same time for the same purpose. Separating blockchain from the Bitcoin is like abandoning Internet and building totally new system on its ruins (and using the exactly the same technology to do that).
Sadly to due open nature of blockchain this has happened with Bitcoin as there are not way more copies of it, than we could ever need, and this leads us to the weaknesses of blockchain and decentralization.
Total lack of barriers to entry
I do very much appreciate when an industry is not regulated by the government, and when big companies cannot bully small ones, but with current crypto currency industry we’ve gone from one extremity to another. We’ve gone from the phase where nothing is allowed to the phase where everything is allowed. And quite frankly they are both bad.
Today we over 2000 different crypto currencies according to CoinMarketCap and since they list only trading coins, in reality we have over 10k, of which most have been abandoned already. Even can idiot can see that we don’t need as many and still the same idiots invest in those shit-coins in hope of making easy money. Obviously they lose eventually, which leads us to the next point.
Total lack of scam protection
The another weakness is total lack of scam protection. Usually this is taken care of by government institution, but since we are in the free market, no one is manipulating it. We could have easily decentralized non-government supervision entity, but it will take years until industry pioneers will steal enough to move the the next phase of “building honest business”.
Right now, everyone has to look after their own back, and since majority of the people are stupid this is not going well. In addition to huge amount of scam coins, we even see quite bold attempts of scamming people with crypto currencies that:
- Have no blockchain: OneCoin.
- Are not decentralized: Ripple/XRP.
But still people fall for them.
So what should be done?
To be honest: at this point, nothing.
Nothing can be done and nothing should be done. If we allow governments to regulate this market they will ruin it completely just like they have ruined everything else they have ever touched.
Asking a government to help is like sheep asking T-Rex to help them to fix the problem with wolves. Yes, all the wolves will be dead, but so will be the sheep, and the shepherd and the cows and the horses. Everyone will be dead, it will just be a giant massacre.
Sadly all we can do is sit and wait, until the majority of so called “investors” have lost all their money and grown up. It’s a free market and they will be scammed for as long as there will be victims. Best way to fight scam is to educate the mass to not do be total idiots. But the media does this job poorly. Instead of separating obviously hoax-coins they are packing them all together and even attacking Bitcoin itself. And we understand why this is happening. The media owned by government and corporations has their own fish in the tank and are still hoping that FIAT money will still somehow magically survive. So they want everyone who touched crypto currencies to get burned.
If people were truly honestly educated about things, we would not have the problems we have now. The goal of the government is to keep people stupid enough that they don’t question what is happening around, so that government can do it’s dirty deeds. Because if people would become critical and spot lies, manipulation and scam, the government would be the first criminal they would bring down.
In order to truly fix all society issues we have we need to eventually decentralize everything we have, and not only the money.
We need decentralized press, we need decentralized government. Then the problems will fix themselves, not earlier.
Bitcoin is a great start on this journey and a huge first stem that will make it all possible. But it’s not the only step, we need to take thousand more. And then one day we will see truly free society.
The Weaknesses of Blockchain and Decentralization. was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.