4 Concepts Decentralization Cannot Solve

Stop Sign Terra Chain Decentralization

As said before, the blockchain community is far more passionate than most. And yet, if you look at the vast majority of recently launched projects, you’ll find that they fail to keep this passion alive. Why? Because they focus on what they can accomplish with blockchain technology without thinking about whether decentralization is the right approach for their particular problem. In many cases, it isn’t—and if your project is one of them, then here’s why:


  • Decentralization is not a solution for energy consumption.
  • Decentralization is not a solution for the carbon footprint of the internet.
  • Decentralization is not a solution for the energy consumption of the internet.


Accessibility and decentralization are not the same things. There are accessibility problems that one can solve with decentralization, but there are also many problems that it doesn’t solve. Some of the most significant barriers to entry for new technologies come from a lack of accessibility or usability. For example:

  • Many people don’t own smartphones or have access to reliable Wi-Fi
  • People who live in rural areas may not be able to access fast internet speeds (or even any internet at all)
  • Disabled users may find it difficult or impossible to use specific devices

Interoperability (or lack thereof).

Interoperability is a significant issue for decentralized networks. The ability of systems, applications, and other software to exchange and use information with each other.

For two people on opposite ends of the world to talk over a decentralized network, they need to understand what they are saying. In the case of Bitcoin (BTC) and Ethereum (ETH), users need their copy of the blockchain to broadcast transactions across it. 

Otherwise, you will lack proof that those blocks are contained within your copy before signing off on them as valid. 

Decentralization is not the right tool for all jobs.

Decentralization is a tool, not a solution. It’s great for some things and not so great for others. For example, you wouldn’t use your hammer to hammer in screws, would you? Or your screwdriver to drive nails? Decentralization works best when it’s the right tool for the right job—a job that one couldn’t complete any other way.

Now, decentralization isn’t always the best choice. Sometimes centralization is better because of convenience or efficiency (i.e., one database rather than many). 

But when it comes to solving problems that involve people working together toward shared goals—and we’re talking about most organizations here—decentralizing authority allows each person more freedom and responsibility within their sphere of influence.


I hope this has been an exciting read and that it will convince you to rethink your perspective on decentralization. 

I know it’s not easy to change your mind when you’ve been taught something for so long. Still, once we start thinking about how decentralization works in the real world and draw parallels between different industries, we can start making better decisions about what is or isn’t the right tool for a job.

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