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      "title": "Understanding Decentralization",
      "body": "Decentralization as a whole has definitely been one of the stars this 2017. Something that had remained in the shadow for many over the past decade is now more popular than VR, thanks to its rockstar growth over the past year.\nDecentralization is the process of distributing or dispersing functions, powers, people or things away from a central location or authority.\n\nWe could argue that the world is progressively evolving into a more distributed place, where there are less single points of control. We are seeing this with the success of services such as Airbnb or Uber, which move the power from the few and give it to the people. But decentralization is now going much further than just that, mainly thanks to the different applications blockchain technology is giving birth to.\n\nTo understand decentralization, we first need to understand the technology that made it boom. That is, blockchain technology. A blockchain is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data.The first work on a cryptographically secured chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornetta. The first distributed blockchain was then conceptualised by an anonymous person or group known as Satoshi Nakamoto in 2008 and implemented the following year as a core component of the digital currency Bitcoin, where it serves as the public ledget for all transactions. The fact that the different blockchain applications that do actually make sense are still at an incredibly early stage make it obvious that blockchain still has a long way to go. Although I admit so, it also needs to be understood that decentralization is probably reaching its hype peak, just like Virtual Reality did a couple years back. Decentralization and Blockchain are being pumped by an endless amount of services that don’t make much sense and which long-term applications are questionable. For that reason, I believe that this decentralization as a whole will mature in the coming months, and become something solid and relevant in the coming years, similarly to what happened with VR.\n\nOne of the decentralized innovations blockchain gave birth to were cryptocurrencies, being Bitcoin the first of these. I believe that decentralized digital currencies will make it into mass-market adoption, as they are a more efficient way of transacting than doing so with fiat. Cryptocurrencies such as Bitcoin Cash or Dash will probably make it way bigger than what they are right now, as they mature and so do the frameworks around them. Governments (which are also becoming incresingly global) need to find effective ways to tax purchases made with cryptos, and services which provide serious refund policies and guarantees when transacting with cryptos also need to be developed. But I’m pretty sure that in the coming years we’ll have a couple truly global and massively adopted decentralized currencies. I’m not so sure about the rest of the cryptocurrencies though. There are over 1,300 different cryptocurrencies as of today, and each these is serving a different purpose. This situation was mainly fault of what’s known as Initial Coin Offerings (ICOs), something that I think won’t be too big once all these matures. ICOs are non-equity fundraising rounds for startups, in which the startup trades money in exchange for their own cryptocurrency. This dedicated cryptocurrency is usually intended to be used only inside the ecosystem of the company from which the user purchased the crypto from. The thing is that this goes against the whole point of globalization. The fact of having to use a different crypto for each different company doesn’t make much sense. Right now there are so many successful ICOs mainly because the industry is at its hype peak, but I do think that all these ICO mayhem will slow down significantly, and most of the currently trading cryptos will fail due to lack of true meaning (both, of the cryptos and in many occasions of the projects themselves). You do have some cryptos apart from those which aim to be the next big currency (eg Dash) that will succeed, but these will probably be tied either to extremely successful companies with a huge demand, or represent much more than just a currency (eg ownership of a house via a smartcontract).\n\nSo, all in all, I believe that decentralization will be one of the few trends that will shape our future, but I also believe that its overall hype will slow down, and that only a very small % of what we’re currently seeing in the industry will succeed and make it big in the long run.",
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      "body": "In this article I’d like to share some thoughts on something that seems to be everywhere on the media these days: Cryptocurrencies, Tokens, Decentralization & Blockchain. These forces are growing tremendously fast and might become the next big thing, next to Virtual Reality, Artificial Intelligence etc (or maybe even bigger). More in particular, I wanted to write a brief article on the positive and negative aspects of these trends, and overall, whether this new ecosystem makes sense or not (or which aspects of it should at least stay!).\n\n![1-ZdSpJavrW5OK2ooLPAfxMg.png](https://steemitimages.com/DQmeX5mTNk4YxpNuqDKyQpH9xhZSotY1tMXqX4i2Krdxawd/1-ZdSpJavrW5OK2ooLPAfxMg.png)\n\nWhat’s so interesting about these trends?\n1.- More efficient way of ruling the world. We’re living in a world dominated by a significant amount of incompetent leaders and institutions, which keep on proving themselves wrong on almost each decision they take. Although they’ve not done it completely wrong, there certainly is a more efficient way of ruling the world. Decentralization makes it harder for incompetents or abusers to dominate the world the way they’ve been doing till now. With decentralization we remove the power from the few and give it to the people. In the current system, we for instance let less competent people have the same voting power as those who are more able. This is right, but it leaves us in mercy of people like Donald Trump, which isn’t “too efficient”. With decentralization, this is not an issue, as there’s no need for someone to rule us all. Thanks to blockchain and smart contracts, we’re able to remove many bureocratic layers and institutions. Decentralized currencies also provide a more efficient way of transacting, without the need of central banks. It’s significantly more efficient. We rule ourselves.\n\n2.- Give privacy back to the people. Take decentralization from the perspective of privacy. It gives people the right to keep their data to themselves, as the data is encrypted, split into pieces & distributed in various machines. Corporations aren’t able to do business with your data. Additionally, it provides a more secure way of storing files. These are much harder to hack since they are decentralized.\n\n3.- Faster way of rising funds. Thanks to tokens and the big awareness of these new trends, it’s now very simple for startups involved in these to rise funds. Startups can just issue their own token or cryptocurrency and get money in exchange for it. Startups use that money to develop their product, and once it’s ready, people can exchange these tokens for the product or service. It’s a more simple way of rising funds. As these trends are new, most of these practices aren’t regulated yet. However, who needs regulation afterall? ;)\n\nThe other side of the coin\n1.- Can we really make it without Governments? We still need regulation to avoid scams and give the World some order. We also need proper tax systems to help those fellow citizens who need it and to maintain cities in good state. So yes, decentralization is good, but where’s the limit? What should and shouldn’t be decentralized? There probably are many tasks that can be performed better by decentralizing them (decentralized currencies, smart contracts etc). However, we should bear in mind that not everything can be decentralized. Bringing it to the very basics, if everyone took care of him or herself, no one would take care of those who need someone to help them out. We need to find a balance, and we need to understand that decentralization can be more efficient, but it also needs some legal boundaries to be optimally applied.\n\n2.- Give privacy back to people. But how much is enough? Again, having more privacy sounds cool. But shouldn’t we control those who use privacy for the bad? To be more specific, what would be of the World if there would be no control whatsoever over terrorists? Again, we need to find a balance here. Decentralization can help us increase the security of our files, but it shoudn’t bilnd them completely. Blockchain transactions are trazable, and organizations that provide decentralized services should stick to strict regulations on gathering the necessary user data before providing a service. If we left room for a completely anonymous internet and transactions, the World could become a complete chaos.\n\n3.- Finally, are ICOs (Initial Coin Offerings) sustainable in the long run? How ICOs usually work, as I explained, is by issuing a currency or token that can afterwards be traded by a product or service that a company provides. So let’s say I want to provide a decentralized way of storing files. I can create my own currency, build a product and then people will only be able to buy my product with my currency. The thing is that this could become highly impractical, due to the amount of different currencies and consequently exchange rates that we’d have. Imagine needing a different currency for every different company you’d buy something from. Doesn’t sound very attractive. ICOs can be very useful for projects as a way to rise funds, and for investors to make money for a few years. However, where I think everything will end up going is into a few global (crypto)currencies, and not a different currency from each brand we use. Another drawback of ICOs is that they are giving birth to a significant amount of scam or nonsense projects whose only purpose is to raise money, instead of building something truly useful.\n\n\nWe should stop and think which aspects of these new trends make sense, and in how much depth they should be accepted.\nBased on these principles, I started Internxt, a project that will cooperate in the decentralization of the internet in a well-thought way that makes sense. Check it out to stay up to date with its latest trends :)",
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