Tweet-length explanation for the use cases of decentralization:
Decentralized cryptonetworks reduce the amount of trust needed for collaboration to happen. They are therefore most useful wherever the need for trust is the bottleneck to scale. Two simple examples:
Decentralized cryptonetworks reduce the amount of trust needed for collaboration to happen. They are therefore most useful wherever the need for trust is the bottleneck to scale. Two simple examples:
1/ The need to trust central web platforms limits the scale of companies that can be built on top of them. It is not possible to build a Google-size company on top of Google in the way that Google was built on top of TCP/IP/HTTP. Google will seek to capture all the value itself.
2/ The need to trust a counterparty in a financial transaction leads to rent-seeking (and eventually monopolistic) intermediaries who, by virtue of the strong network effects associated with human trust, accumulate inordinate and defensible power.
