Everyone in crypto talks about decentralisation, should I care?

Category: crypto-faq

Rather than thinking of decentralisation as being against centralisation, or bitcoin and crypto being against our global institutions, it may be helpful to think of them as a counterbalance.

All crypto is, when you look at it dispassionately, is an attempt to prevent power from finding its way into fewer and fewer hands, often in the form of unaccountable (and unelected) organisations that have come to hold an incredible amount of power and influence.

The network is entirely permissionless. Anybody can participate, either as a miner, or as an account holder, without needing to ask, undergo a credit check, or even reveal their identity. The complex sets of rules that govern how bitcoins are mined and distributed ensure that it’s incredibly costly to cheat the system because the cost of cheating is far greater than the cost of playing fair.

The point of a permissionless network is that in a world where you can have your accounts frozen, nobody can prevent you from accessing them. On a global scale, this means that bitcoin can fill the role of a truly global asset, that no single country can control.