Web3 principle and decentralization

De centralization web3 The effectiveness of the system will depend on its security 、 Economy and equality of information . therefore , We focus on web3 Decentralization in the context of , It is divided into three different categories to promote its application .

 

● Technology decentralization —— Mainly related to web3 Security of the system

Basically , Decentralized blockchain and smart contract protocol provide a license free 、 Verifiable ecosystems , You can build on this ecosystem without a trusted central intermediary web3 Products and services .

● Decentralized Economy —— Mainly with web3 The economics of the system

Programmable blockchain （ Like Ethereum ） And the emergence of digital assets has opened the possibility of decentralized systems , Its own decentralized economy involves trade 、 Service and wealth accumulation （ Or loss ）

 

● Legal decentralization —— Mainly related to web3 The legitimacy of the system

Decentralization has an impact on a range of legal issues , Including taxes 、 responsibility 、 ownership 、 intellectual property right 、 Reporting and privacy .

web3 One of the main advantages of the system is that it helps to form a decentralized economy and an autonomous free market economy that are not controlled by any central institution . These economies can achieve self regulating capitalism , Accumulate value from a wide range of sources （ Such information 、 Economic value 、 Voting rights, etc ）, And distribute it fairly to the stakeholders of the system .

Web3 The system initially communicates to its stakeholders （ By airdrop 、 Other token distributions 、 Decentralized governance, etc ） Give meaningful power 、 Control and ownership , And achieve this goal by balancing the incentives of these stakeholders to maintain this goal . Although the lack of centralized control means that the organizational efficiency of decentralized systems is often lower than that of centralized systems , But it also means that they are not dependent on or subject to the abilities of individuals or leading groups 、 Power or practice . for example , It enables developers to build from them web2 Free from the problems often encountered in the production process , Including the participation rules of enterprise participants who change the platform they control when it is in the interests of the business . stay web3 Stakeholders of the system （ Including developers 、 Contributors and consumers ） Balance between incentives , And then promote further valuable contributions to these systems , Benefit communities and builders .

by comparison ,web2 The central control economy of the system depends on the centralized and hierarchical decision-making and execution of power to drive value . Although this structure can be efficient , But this efficiency comes at a huge cost . Centralized systems are not only controlled by （ Including senior staff 、 director 、 shareholders 、 Interest groups 、 Regulators and governments ） The limitation of practice and ability , And they tend to focus on maximizing the interests of these controllers at the expense of the interests of users , Including contributors and other dispersed stakeholders . stay web2 in , This is manifested by giving priority to captive breeding and closed systems , Require users to sacrifice their ownership and autonomy of the digital world （ Social media posts 、 Followers and photos 、 Media rights 、 Applications, etc , Are locked in this system ）.

In Ethereum blockchain and various web2 Systematic comparison , We can see a real example of the opposition between the decentralized economy and the centralized economy . Ethereum is a decentralized programmable blockchain , Hundreds of smart contract protocols and applications have been built and deployed on it , No authorization or adoption by any central authority is required .

The relationship between economic and legal decentralization

web3 Decentralization of the market , Use the local governance token to encourage developers to add functions to the market and encourage buyers and sellers to participate in trading activities . In order to make the decentralized economy of the market work , It needs to properly balance its accumulated value （ Such information 、 Economic value 、 Voting rights, etc ） To its stakeholders （ developers 、 Buyers and sellers ） The distribution of . Any significant and persistent imbalance in this arrangement may endanger the economy of the system . for example , As the original governance token is used as an incentive mechanism for the operation of the system economy , Unbalanced information about the value of the native governance token （ Such as information related to market operation ） The accumulation of may allow one party to manipulate the market for its own interests . Again , The imbalance in the accumulation of voting rights may allow one party to change the market rules for its own benefit . Last , If the economic value accumulated by the market is unevenly distributed among stakeholders , Unpopular voters may leave other competitive markets . Although a fragmented market economy may suffer isolated imbalances in the short term （ Especially if they benefit charitable actors ）, But in the long run , It is best to eliminate these imbalances , To prevent them from being used .

Web3 Components of the system

Blockchain networks and smart contract protocols ; Digital assets ; And decentralized governance .

Blockchain networks and smart contract protocols
Blockchain and smart contract protocols can provide a license free 、 There is no need for a trusted and verifiable ecosystem to support technology decentralization , In this ecosystem , What networks can the value be in 、 Transfer products and services . These are the core innovations of programmable blockchain . Products and services can be deployed and run without central operations , Thus opening up a vast world of possibilities , Include community authorized applications , These applications do not need to rely on algorithm driven advertising programs to make them economically viable . Besides , Public blockchain and smart contract protocols support decentralization in the following ways ：
(1) Achieve transparency ; (2) Open source / Public goods ; (3) Realize data portability ; (4) Composability .

Because we are still in web3 Early stages of development , At present, few blockchain networks and protocols cannot overcome the network effect . therefore , It is particularly difficult for the agreement to rely on implicit incentives to promote the elastic Decentralized Economy of its system , This in turn encourages them to give priority to trying to contribute （ Namely, liquidity mining project ） And developers （ I.e. award the project ）. excitation . up to now , Most of these projects have failed to be web3 System developers bring long-term and meaningful contributions . As the industry matures , Expected given web3 The network effect of the system will increase , This will lead to an increase in the reduction of implicit incentives , So as to improve the effectiveness of its explicit incentive .