Blockchain ≠ Decentralization

You will be very surprised to hear that Islam and Confucianism are almost the same religion. In fact, people in the East are also surprised to hear it. The same is true for Middle Easterns. However, if you read both the Analects and the Koran, you will find that the two share the same living feelings and lifestyles. That is, Confucianism is Islam without God, and Islam is Confucianism with God. Other than that, they share the same root.

The same is true of democracy and anarchism. A democracy has a president or a prime minister. Anarchism, on the other hand, does not have it. So in the event of the Great Depression, there is a person who is responsible in democracy, but there is no person who is responsible in anarchism. The words responsibility of all co-operative members are the same as the words no one is responsible. In other words, anarchism is a democracy with no one to take responsibility for, and democracy is anarchism with someone to be responsible for.

Blockchainers shout anarchism, namely, decentralization. Satoshi pursued an anarchic financial system. In particular, the subprime crisis of 2008 affected him. Thus, most Satoshi followers, or blockchain followers, advocate an anarchist financial system. But what will happen if the financial system is operated by anarchism?

In anarchism, members of the cooperative are not held accountable. On the surface, everything seems to flow beautifully. But Putin suddenly invaded Ukraine. Then prices around the world began to soar. In this situation, which is suitable for crisis management, the current democratic financial system or the blockchain financial system? From my point of view as an economist, if we leave this situation to anarchism, the global economy will end up in either hyperinflation or panic. The reason is that no one is responsible. Users, or coin cooperatives, cast TXs and vote only for their immediate benefit. In the case of democracy, the Fed chairman, the president, and even the ruling party's House and Senate feel responsible. But there are no such people in the blockchain. There are only co-operative members who put private interests before public interest.

In the 19th century, a communist capitalist in a country conducted an experiment in which he handed over his factory management rights to workers. He expected the factory to prosper. But the factory went bankrupt shortly afterwards. In the face of laziness and insincere decision-making, the company has become a mess.

The ability of the blockchain is in the "record". In this world, all areas that require records can be the territory of the blockchain. In this case, managers are not required. It doesn't guarantee the authenticity of the record's content (this is the famous Oracle issue), but at least the fact that it was recorded by a true author is guaranteed, and it doesn't cost at all. Namely, management personnel are not required. This is the ability of the blockchain.

The ability of blockchain is nothing more or less. It is neither more nor less than the ability to guarantee who wrote it at no cost. However, this ability does not extend to the ability to realize the decentralization, or 19c anarchist ideology. It's just a guarantee that it's a document you wrote. The ideal of anarchism will never be achieved only with the fact that the documents of this world are not forged. The ideology of anarchism is not achieved just because additional personnel are not needed to prevent forgery. What it means is that the ideology of "de-centralization" is not achieved by preventing forgery at no cost. Nevertheless, when people talk about blockchain, they always shout decentralization. This is nothing but the belief that the "record revolution" can achieve the ideals of anarchism.

Now let's look at the reality. What does DeFi look like now, which has been calling for decentralization? Is it a beautiful image of anarchism? No. It's nothing more than an image of gamble. Tax evasion and money laundering are rampant. The USDT is refusing to audit. These are worse people than Lehman Brothers executives who caused subprime mortgages. They were audited at least. That is, the current DeFi is not the decentralization. It's just Sodom and Gomorrah. Blockchainers are ostensibly calling for the decentralization, or the beautiful ideal of anarchism, but their inner hearts are only pursuing Sodom and Gomorrah.

The area in which the blockchain can exert its utility can be expanded only to the extent corresponding to the special ability of the blockchain. In other words, it can be effective only in the realm of plain daily life where it is no problem even if there is no one to take responsibility. But this area is incredibly wide. Blockchain can reduce costs and manpower in almost every day life, such as IoT, auctions, voting, etc. And these are the areas that smartcontracts should go. However, in this area, you cannot feel any decentralized nuance. It's nothing more than a good cost-cutting technique. Bringing up the term anarchism in these scene is just out of the blue.

Blockchain has no relationship with decentralization. Rather, centralized intervention is essential. Without it, it has no choice but to move in the direction of Sodom and Gomorrah, and that is what it looks like in the present reality.