We often had these conversations in the past about centralized business hitting the soil and all that, but seeing how the ecosystem and its technology have evolved over the years, centralized businesses aren’t the problem of the world because people will always set up structures to create and feed value to themselves, but that value it creates is what needs rebuilding from the ground up.
Every company on the planet cannot be built decentralized, some setups will have to be centralized in other for the common goal of investors to be met, this is why Ethereum may become highly centralized going forward and still attract developers, investors, and users. It’s not always about the management itself, who runs or controls an application is almost never a problem but does it actually work? That’s what users care about.
Ethereum works, numerous things can be built on the system, the idea of smart contracts makes it a mini-internet in the space, where literally so much can be deployed onto the chain. We can say the same for centralized exchanges, whether or not decentralized exchanges will eat up the volumes in the ecosystem, centralized exchanges will still exist.
Understanding Custodianship merits and why the user base will retain some
Decentralized exchanges have their merits, but the business environment is big enough for two to reside. People don’t use binance simply because they believe in centralization, but they use it because of “security, ease, and diversity”.
You figure you don’t have to worry about security as a normie, only the few that understand the system understand the actual risk, but what users see is security, ease, and access to diverse opportunities, this is something decentralized exchanges are fighting to build out.
Navigating a dex proves harder than signing up for a google account, these things are important in any business ground and it’s frankly what is keeping the users away. Security is not highly sensed when bridges are being hacked in numbers.
Shifting our focus
Cryptocurrency has a goal to change how money is created, distributed, utilized, and destroyed, not specifically to decentralize the world’s business ground but to reshape the value mechanisms.
It is a community decision to build out decentralized structures, one of many is hive which currently has zero competitors in terms of development, value, and sustainability.
How we create money affects the overall economy, and as we’ve seen with fiat, it’s a total mess when these mechanisms are built centrally. This points to the fact that applications do not have to be decentralized, but that the value-assets that hold up the economy have to, this is why Ethereum cannot be a reserve currency and even bitcoin has its own flaws in this context.
Decentralized businesses will emerge just as centralized ones, and all will bring merits to blockchain and cryptocurrency, the vast utility of digital assets is inevitable and we can see how going value, the ecosystem will ease the business environment and security, diversity and ease will be the values that hold it up.