Warning of the dangers of centralized power and urging the creation of a balanced ecosystem
- Editor's note
- Balance of Power Original Link: https://vitalik.eth.limo/general/2025/12/30/balance_of_power.html
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(Source: Arkham Intelligence)
In this article, Vitalik emphasized that projects must clearly consider not only their "business model" but also their "decentralization model." While a business model is about how resources are procured, a decentralization model is a strategy for preventing power from being concentrated in a single entity and managing the risks posed by such concentration.
He explained that the difficulty of decentralization varies greatly depending on the situation. For open protocols like TCP, IP, and HTTP, or languages like English, decentralization is relatively easy to achieve because there are relatively few concerns about the dominance of a single entity. On the other hand, he noted that decentralization is extremely difficult to implement in certain use cases because it requires deliberate and systematic effort.
His recent remarks are intertwined with the recent trend in the blockchain industry, where, despite promoting decentralization, power is increasingly concentrated in the hands of a few entities. Many projects adopt a centralized structure for initial funding and rapid decision-making, but often fail to transition to decentralization or remain mere formalities.
He predicted that "finding ways to take advantage of flexibility without compromising its associated drawbacks will be a critical challenge for the foreseeable future." This is interpreted as a message that, as the blockchain ecosystem grows, it must find a balance between efficiency and decentralization. Industry experts believe that the Ethereum founder's recent question has raised an important topic for improving the governance structure of cryptocurrency projects.
Joohoon Choi joohoon@blockstreet.co.kr
