On Friday

Distributed networks and the growth of the stakeholder economy

Written by Brian O’Beirne  research director Kasei PLC

 
A “virtuous cycle of decentralisation” is a positive feedback loop between the value of a protocol and its decentralisation, whereby the increasing value of a protocol promotes its decentralisation which, in turn, increases its value. This cycle is embodied in the design of a blockchain protocol and is the primary causal dynamic through which the protocol grows and ultimately gains mainstream adoption. But to fully understand this cycle, we must first understand what is meant by;

 

 1) the “value” of a blockchain protocol

 2) its “decentralisation”

 

Each...