Society began in clans with a single leader, to evolve into oligarchy control of the factions, to monarchy, dictatorships, and eventually democracy then republics. These all contained forms of central controllers of the direction of such factions.
Society is transitioning now towards decentralized forms of governance beginning with the first successful implementation, Bitcoin. It gave the control over to a world wide group of users dedicating their resources called Miners. As this type of system evolved, these groups began to pool together forming groups controlled by only a few people, called mining pools. Over time these pools gained control over the governance structure of the block chain. This could be compared to oligarchy control over the global network, to where the decisions of changes governed by votes (blocks) were put in the hands of a few people deeming the fate of everyone's resources invested into such a system.
Other voting forms began to grow around this: PoS, PoW/PoS based block chains to spread the resource input to more hands. This system began to evolve into a "Decentralized Dictatorship" to where those that made the decisions were the ones that were able to rise to the top of decentralized politics through their pooled resources and utilize the resources submitted by other smaller political figures (miners submitting work to the pool). These miners gained less and less say over the entire system as it has formed into each oligarchy control over the entire world wide system.
Currencies based off of this type of technology inherit these flaws no matter how far they try to spread the reach, as it is mathematically claimed through the computational work or holdings of individuals. There are no other forces to balance these other than public opinion, political campaigns to change the protocol, developer decisions (Core variants ex. XT, Classic, etc.).
With no checks and balances this will further deem the control into fewer and fewer hands as more people contribute resources in the form of investments, computational resources, and developmental innovation. This is what has allowed governments in the centralized systems to further centralize the power to be of benefit to only their own needs rather than the needs of the whole of their people.
Decentralized systems such as Bitcoin, Ethereum, Dash, MaidSafe, Ripple, and many others will compound this problem as adoption rate increases whether from inner industry adoption (Bitcoin investors) or real world adoption (New Investors). This will also further promote their own centralized desire no matter the extent of their belief in decentralization, for the greater the personal benefit to these pooled governors the greater their desire to portray the image of decentralization for their greater benefit.
Now these problems do not come without their solutions, that in which require a new direction of thought and intention. When there is no mathematical regulation (cryptography) which has no bias, naturally the governors bias will further compound upon their success to divert them from their original intentions, the Power (Energy) of such success will inherently test the character of the individual bearing it, and promote false beliefs about what brought upon their initial success.
The success was not brought forth through their ingenuity, their innovation, or their own genius. It was brought forth by the people that believed in their ingenuity, their innovation, and their genius. This misunderstood component of their success can draw the intentions off course, no matter how pure they were to begin. This compounds decentralized chaos, and creates a pressure within the people that made the system as powerful and influential at it has become.
The next step lies beyond block chain, web 3.0's, or instant transactions. It lies beyond a structure that can handle world wide transaction volume, or contracts that can be developed into a global protocol. The next step is the solution to the current stage in Decentralized Development.
Just as centralized governance structures evolved from dictators to democracy, so will decentralized governance structures. This will be seldom seen until the limitations of the previous implementations expand to their absolute, inhibiting the growth of these new systems, such as Bitcoin's block size debate, or the scale ability issues that will be faced in Web 3.0 block chains whether they act as Storage Engines, Turing Complete Languages, or Global Database Applications.
The next step will become necessary at the time of understanding in the limitations of Block Chain 2.0 which is the current age we are entering in Decentralization that is being led by Vitalik Buterin, among many others behind the scenes.
The Block Chain 3.0 will include components of PoW, PoS, Contracts, and all the valuable technology rising from Block Chain 2.0, but it will contain one significant difference. It will rise from "Decentralized Dictatorship", and it will become a "Decentralized Democracy" that is embedded in greater than contracts on a cryptographic chain, decentralized applications, or even block chain innovations.
This Decentralized Democracy will Decentralize Decentralization, to where resources of computing and investment won't be the ruler, but the ruling will be given to the people. This will be cryptographically secured so that the checks and balances will not be capable of personal bias, it will only be capable of reflecting the mathematically locked decisions of the ones that created such a system:
The people that poured their own resources no matter how big or small, the Leaders, the Developers, the Miners, the Holders, the Traders, the Merchants, and the every day Users that chose to seek a new direction and help create a system that can free them from the manipulated slavery we have all been born into.
It's coming...
Viz.
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