The Centralization and Decentralization Debate in Blockchain Development

The evolution of Blockchain technology is a constant game between centralization and Decentralization. In this process, credibility and availability are two core concepts. Availability focuses on ease of use and quick onboarding, while credibility aims to expand the boundaries of human knowledge. Projects like Bitcoin are exploring how to establish trustworthy systems and data. The coexistence of these two demands has led to forks in Blockchain development.

Ethereum follows the basic philosophy of Bitcoin and adheres to the path of Decentralization. However, due to its higher entry threshold, some consortium chain projects have made compromises in terms of usability. This fork arises from practical needs, as the introduction of smart contracts has increased the complexity of on-chain logic.

In the entire Blockchain industry, the verification mechanism is the most critical and challenging aspect. Currently, there are mainly three types of verification methods: guarantees, accumulative game ( approximation ), and the built-in efficient market hypothesis. Although Bitcoin pioneered the way, it has not completely resolved the verification incentive problem. This issue has become an important bottleneck for subsequent development.

Decentralized assets are one of the most attractive applications of Blockchain technology. Although Bitcoin has limitations as a currency, it has built a brand new non-cooperative game system. In this system, participants make autonomous decisions based on their own conditions, ultimately reaching a general equilibrium. This mechanism breaks the limitations of traditional cooperative games and achieves more efficient resource allocation.

Projects like BTC, ETH, and NEST are attempting to build non-cooperative game systems, which in turn give rise to decentralized assets. The risk-return characteristics of these assets are distinctly different from traditional assets, and they perform better in eliminating uncertainty. Although the price volatility is significant, the transparency of the underlying data far exceeds that of traditional financial assets.

Blockchain technology is not just a simple linear service system; it lacks functionalities such as automated communication. Currently, on-chain services are primarily concentrated in the DeFi sector. In this process, how to capture value and maintain competitiveness is a key issue that needs to be considered. With the continuous development of technology, the blockchain is expected to have a profound impact in areas such as financial services and asset management.