The conversation surrounding decentralization is reaching a new high. When is something mere infrastructure, not controlled by anyone, and when is it "provided" by someone, singly or as a collaborating group. Regulators are trying to get their heads around this question for years now, asking the crucial question: how (or even if) fully decentralized digital infrastructure can be regulated?
This opens a Pandora's Box of concerns:
Are ALL Layer 2 solutions inherently centralized?
Does true decentralization mean giving up the ability to push updates? (Think burning multisig admin keys and protocols frozen in time - yikes!)
Others are chiming in, highlighting the potential pitfalls of chasing "pure" decentralization at the expense of progress. However, with increasing regulation kicking in, many projects do not even have a choice - it is either decentralised or out. ️
The question remains: Can we have a truly decentralized system that's also adaptable and responsive to real-world needs? The debate rages on here.
I shared my five cents about the reluctance to permanently relinquish access to and control over software systems in my last autumn's contribution to CV VC German Blockchain Report 2023.
