Resiliency And Crypto Economics
A major problem with centralization is that it is not resilient. It offers too many opportunities for attack. We can see how entire economies can be toppled simply because they are centralized around a few particular segments.
In this video I discuss how crypto economies need decentralization to increase their resiliency. This is one area that can make these systems stronger than the present financial system.
▶️ 3Speak
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to tell the truth my eth wallet has been hacked many times but I say that my fault for using a not safe site which allow my account to get hacked today's I don't think anyone is saved from hackers
well decentralization crypto and exchanging is a nice way to go we should learn from steemit
You're right, more people using and spreading a token makes it difficult to like attack it, rather than a small collection of people, Centralisation still somehow finds its way in blockchain and hopefully one day it can be totally different. A large number of people makes it difficult to be attacked
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Fortunately, @josediccus, if we take blockchain and cryptocurrency as a whole, we are seeing the decentralization taking place. While some chains might not be doing it, if we look at all the whales, they vary from chain-to-chain.
Same thing on Hive, we see more tokens forming and different distribution structures taking place. So while the HIVE distribution is relatively unchanged, we are seeing the start of new wealth systems forming where people are accumulating a lot of different tokens.
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Exactly, you got me in that "forming new wealth" while hive may accumulate more strength as the epicenter, basically these new projects will only increase usage and give it a chance to stay afloat when the boat is rocked. Hopefully we can see more "new wealth"
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It is a matter of getting involved with those things that show potential for a fantastic return.
We all want the 1,000X moves. I just wrote a post about that. However, even on Hive, there will be tokens that 10X. Owning a few of those will help to build our wealth nicely. Keep doing that over a few years and I think a person is in a much different position.
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Decentralization is much more sustainable than a centralized model. It is not only more resilient, but is much more adaptable to the dynamics of human behavior, needs, and wants.
Summary:
In this video, Task discusses the importance of resiliency and decentralization, drawing parallels between centralized economies and cryptocurrencies. He emphasizes the need for decentralization in the cryptocurrency world to enhance security and prevent vulnerabilities. Task delves into examples such as the Russian and Middle Eastern economies heavily reliant on resources like oil, highlighting the risks of centralization. He explains how decentralization can lead to a more robust and resilient system, citing issues faced by platforms like Steemit to reinforce his point.
Detailed Article:
Task begins by highlighting the vulnerability of centralized economies, using examples like Russia and the Middle East's dependency on natural resources such as oil. He explains how fluctuations in commodity prices can severely impact these economies due to their lack of diversification, leading to economic challenges. Task then transitions to discussing the importance of decentralization in the world of cryptocurrency, pointing out that decentralized systems offer greater security against data breaches compared to centralized ones.
He goes on to stress the significance of token distribution in ensuring a resilient cryptocurrency system. Task uses the example of Steemit's downfall due to centralized token ownership by the company, illustrating the negative impact of poor distribution on the overall ecosystem. Task then shifts the focus to Bitcoin, discussing the paradoxical scenario where whale selling can contribute to the token's price increase due to demand dynamics.
Task emphasizes that most cryptocurrencies start in a centralized manner but evolve towards decentralization over time. He references EOS's ICO and initial centralization, underscoring the evolution towards a more distributed system. Task points out that resiliency grows as more people get involved, spreading ownership and decision-making across a broader community.
Furthermore, Task delves into the dangers of a lack of resiliency in the current financial system, citing potential risks in European and American banking systems. He draws parallels to the collapse of the Soviet Union, highlighting the consequences of a non-resilient economic structure. Task underscores the role of decentralized projects in enhancing resiliency and emphasizes the importance of community involvement and diversified token projects for a more robust ecosystem.
In conclusion, Task stresses the benefits of leveraging decentralization and resiliency in cryptocurrency ecosystems to achieve abundance and exponential growth. He encourages viewers to embrace decentralized systems to enhance overall stability and prosperity.