Introduction
This week’s assigned reading was a speech by Dr. Steve Trost titled Decentralization of Power & the Future of Freedom. In his speech, Trost highlights the numerous problems associated with centralized power, including single points of failure, corruption, and abuse. Centralized systems often enforce a one-size-fits-all approach, where freedom exists only at the whim of a central authority. In contrast, Trost argues that decentralization offers resistance to failure, immunity to corruption, and multiple solutions that cater to the specific desires of local citizens.
Mass Surveillance and Cryptographic Solutions
Trost also discusses the modern issue of mass surveillance. He notes that personal data is systematically collected by corporations, governments, and agencies, raising concerns about the emergence of a surveillance state. A bad actor could exploit this data to target individuals or groups. Trost refers to a book that shifted his perspective, which explores how cryptography can reconcile the need for both privacy and proof. With cryptographic systems, identity and property can be both concealed and verifiable when necessary. The book also emphasizes that centralization makes it easier for thieves, as it identifies which digital assets are most valuable and where they’re located. However, Trost warns that quantum computing could crack current encryption techniques within the next 5 to 20 years.
Decentralized Currency and Financial Freedom
On the topic of currency, Trost criticizes government-issued money for its susceptibility to manipulation. Historically, money was backed by gold, offering a finite and tangible resource. Today, governments can create new money out of thin air, effectively imposing an indirect tax on all citizens. Decentralized currency, if truly decentralized, can offer freedom from such manipulation. It also operates independently of government oversight or restrictions. For example, depositing just under $10,000 into a bank may raise suspicion, as transactions over that amount are automatically reported to the federal government. In contrast, decentralized currencies require only access to a private key for global transactions. According to Trost, a currency must meet several criteria to be considered decentralized: changes must require widespread consensus, anyone must be able to operate a node and add transactions, there should be no pre-mined tokens, and the code must be open-source.
Social Media Networks
Trost further critiques centralized social media platforms, where a single entity controls user accounts. He cites Twitter’s ban of Donald Trump as a decision made solely by company executives. In a decentralized social network, no single person or organization has the power to delete or suspend accounts or censor content. Censorship becomes entirely recipient-driven. Likewise, no entity can prevent you from sending or receiving cryptocurrency. Trost provides the example of Steem, which forked into Hive to escape centralized control. Hive moved tokens into a single account, with access only granted through a democratic vote, ensuring decentralization where even top holders own only a small percentage of total tokens.
Coporate intermediaries
He also critiques corporate intermediaries that take significant portions of money in exchange for services. Peer-to-peer transactions, he argues, eliminate the middleman and allow for direct feedback between buyers and sellers. Trost references examples of crony capitalism, such as Elon Musk benefiting from anti-competition regulations.
Citizen Journalism and Control of Information
Trost praises the rise of independent citizen journalism, using the Twitter Files as a key example of how non-traditional journalists are exposing stories that centralized media often overlook. He argues that these individuals are shifting journalism toward greater transparency and accountability. While some claim Elon Musk restored free speech to Twitter, Trost disagrees and believes Musk simply shifted control from one central authority to another. True freedom of expression, Trost argues, can only exist on decentralized platforms where no single entity controls speech or access.
Voluntary Exchange and Regulation
Finally, Trost emphasizes the importance of voluntary exchange, where both parties benefit, even if the exchange is unequal. These mutually beneficial transactions improve society as a whole. He argues that government regulations hinder such exchanges and therefore harm society. In a global economy, regulation is ineffective due to jurisdictional boundaries. For instance, U.S. restrictions on AI chip exports to China encouraged China to innovate, producing models that were both cost-effective and consumer-friendly, ultimately undermining the original intent of the regulation. Trost concludes that consumer sovereignty, enabled through transparency rather than regulation, is essential for a healthy society.
Commentary: Is Decentralization the Answer?
Decentralized systems introduce new challenges such as a lack of accountability, slower decision-making, technical complexity, and the potential for misinformation to spread unchecked. In some cases, decentralization can even lead to fragmentation or tribalism when consensus fails. I also wonder how illegal activity is dealt with if decentralization allows anonymity. However, the core idea that decentralization empowers individuals and distributes control more fairly is hard to ignore in an era where centralized entities have grown increasingly opaque and overreaching. The truth likely lies in a balanced of the approaches leveraging decentralization to protect freedom and transparency, while maintaining enough structure to ensure safety, coordination, and shared ethical standards.