Centralization hasn’t worked, decentralization is the answer: crypto pro 

Miles Jennings, lawyer general of the A16Z, argued that traditional regulatory approaches, such as antitrust measures, often manage to solve real centralization problems.

According to a blog By Jennings, centralized control of technology, finance and artificial intelligence creates important consequences: limiting public discourse, financial access and information flow.

Large technologies, large banks and large AI dominate these sectors, leaving users little to say on the platforms that shape their lives. Although decentralization offers a solution, it requires strong incentives to become viable.

Centralization is effective, allowing businesses and governments to coordinate resources, make rapid decisions and develop effectively.

However, Jennings maintains that this concentration of power suffocates competition, restricts financial access and subjects users to arbitrary rules. Historically, Decentralization was difficult To implement because it did not have the technology to operate on a large scale.

But blockchain networks like Bitcoin (BTC), Ethereum (Ethn), and Solana (GROUND) have shown that decentralized ecosystems can operate effectively, with billions of dollars of value that cross them.

Encourage decentralization

The challenge now, Jennings notes, is to encourage decentralization. Blockchain -based projects often find it difficult to balance regulatory uncertainty with the need for distributed governance. Many opt for centralization under the guise of decentralization, creating risks for users.

Regulatory executives must evolve, reducing the charges of compliance as projects decentralize. Instead of applying traditional finance laws to Decentralized financeTailor -made policies should recognize the differences between the systems directed through intermediary and without confidence.

Jennings underlines that decentralization promotes competition, creativityAnd freedom while distributing a more equitable value. The key, he argues, is to create legal and economic incentives that encourage businesses and networks to adopt decentralization in a sustainable manner.