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A Summary of

Why decentralization matters

by
Chris Dixon
Chris Dixon
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The Internet’s Trend Towards Centralization

  • Early internet was built on open protocols; huge web properties such as Google and Amazon grew without any significant obstacles.
  • Later, large tech companies built their own products that used proprietary protocols
    • Led to centralization of services
    • Made it harder for new startups to grow their internet presence without coming into conflict with the established, centralized platforms

A Decentralized Response for the Future of The Internet

  • Centralized networks stifle entrepreneurship and endanger the privacy of user data.
  • Cryptonetworks are built on top of the internet and use decentralized protocols.
    • Blockchain is used to maintain the network.
    • Each platform, such as Bitcoin and Ethereum, are intended for different purposes.
    • Participants are offered tokens as economic incentives to maintain the network.
  • Participants have power over the network with the option to sell and buy coins.
  • The only limitations preventing these networks from making their centralized counterparts obsolete is lack of performance and scalability.
  • Decentralized systems have the advantage to attract entrepreneurs and get better by attracting more contributors.
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