As we keep seeing over and over again, when control of a powerful system or platform is in the hands of a few (let alone a single leader), it’s too easy to encroach on user freedoms. That’s why decentralization matters: It’s the tool that allows us to democratize systems by enabling credibly neutral, composable internet infrastructure; promoting competition and ecosystem diversity; and allowing users more choice, as well as more ownership.
But decentralization has been hard to achieve in practice — at scale — when pitted against the efficiency and stability of centralized systems. Meanwhile, most web3 governance models have involved DAOs (decentralized autonomous organizations) that use simplified yet burdensome models for governance based on direct democracy or corporate governance — which are not designed for the sociopolitical realities of decentralized governance. However, thanks to the “living laboratory” of web3 over the past few years, more best practices for decentralization have been emerging. These include models for decentralization that can accommodate applications with richer features; and also include methods such as DAOs embracing Machiavellian principles to design more effective decentralized governance that holds leadership accountable. As such models evolve, we should soon see unprecedented levels of decentralized coordination, operational functionality, and innovations.
AI + blockchains come together
Decentralized blockchains are a counterbalancing force to centralized AI. AI models (like in ChatGPT) can currently only be trained and operated by a handful of tech giants, since the required compute and training data are prohibitive for smaller players. But with crypto, it becomes possible to create multi-sided, global, permissionless markets where anyone can contribute — and be compensated — for contributing compute or a new dataset to the network for someone who needs it. Tapping into this long tail of resources will allow these markets to drive down the costs of AI, making it more accessible.
But as AI revolutionizes the way we produce information — changing society, culture, politics, the economy — it also creates a world of abundant AI-generated content, including deep fakes. Crypto technology can be used here as well to open the black box; track the origin of things we see online; and much more. We also need to figure out ways to decentralize generative AI and govern it democratically, so that no one actor ends up with the power to decide for all others; web3 is the laboratory for figuring out how. Decentralized, open-source crypto networks will democratize (vs. concentrate) AI innovation, ultimately making it safer for consumers.
@pavlovcik @Draeieg FYI a16z a few of the things we’re excited about in crypto (2024) https://a16zcrypto.com/posts/article/a-few-of-the-things-were-excited-about-in-crypto-2024/