Post #1 — Blockchain Equity
Institutions are fundamentally corrupt and exploit the most vulnerable populations while helping just a few. Although fundamentals of capitalism can be a perceived net good to society, the human drive for power can easily pair with capitalism to manipulate systems and the people within them. Today, we see incredible disparities within our own systems creating economic inequality, healthcare inequality, a climate crisis with racial inequality intertwined in all systemic issues. The pandemic showed the US in particular, the urgent need to redefine and reform systems as the current structures are truly working for very few and powerful people and corporations.
The promise of blockchain, a decentralized network gives way to incredible opportunities for system standardization, access for all who have access to the internet and enhanced security. Although the decentralized nature of blockchain allows for greater control to greater people the consensus models of proof of work and proof of stake still require centralization. Will blockchain, which opens the foundation to “Web 3.0”, be the perpetuation of monopolization of a few technology companies or will it be the start of garnering equity on the internet?
As the popularity of blockchain technology grows main players such as Ethereum and Bitcoin have the possibility of becoming the 3.0 monopolies. Although there are endless possibilities for either cryptocurrency or independent blockchains to emerge as they are open source, Etherum and Bitcoin are the most prominent “players”. The two operate in very different spaces, Etherum, as decentralized web system and Bitcoin as a decentralized cryptocurrency. As these blockchains gain in popularity and prestige, the main question is do the consensus mechanisms deployed Proof of work and proof of stake (Eth 2.0) still concentrate power to just a few? With both proof and work and proof of stake, a “buy in” is needed in order to validate the chain. With proof of work this buy in its computational power grows as the blockchain grows. Now in order to buy bitcoin for example you can either buy it for about $60,000 or to mine which takes increasingly expensive computational power. Or with proof of stake in order to stake, one must have a buy in of ETH is needed and those who have more ETH are given more staking power and decision power. Although this is a very over simplified explanation, this can seem perpetuating of the preexisting system in which a few people have all the power. Is blockchain just allowing a redistribution of power? Although blockchain has many benefits there are potential negatives that could come with the increasing growth of Eth and Bitcoin. Especially as more technology is developed and in tandem more universally excepted technology, the early adopters could be the decision makers who are the most profitable within the web 3.0. Therefore, web 3.0 could be less of an equity restart and more of a redistribution. It is up to those who hold the most power within these networks to develop the framework for how they want the internet to be, do we trust them?
