Vitalik Buterin Advocates for a Decentralized Future to Avert Societal Collapse

Ethereum co-founder Vitalik Buterin has raised crucial concerns in his latest essay regarding the increasing concentration of power within governments, corporations, and populist movements. He argues for a shift towards mandatory technological diffusion as a remedy for these rising threats to democracy and personal freedoms.

Key Takeaways

Vitalik Buterin’s essay, “Balance of Power,” highlights the dangers of power concentration in society.
He argues that traditional checks on power are failing due to rapid technological advancements.
Buterin advocates for mandatory technological diffusion to promote fair competition and prevent monopolistic control.
He emphasizes the importance of decentralized systems in safeguarding individual liberties and democratic institutions.
Recent activities on the Ethereum mainnet indicate a rise in decentralized adoption, even as transaction fees have dramatically decreased.

Vitalik Calls for Decentralized Future to Prevent Societal Collapse

Growing Power Concentration Poses Risks

In his essay titled “Balance of Power,” Buterin emphasizes that civilization is at risk due to an increasing concentration of power among major government entities, corporations, and influential groups. He argues that this concentration is outpacing natural checks and balances, posing a significant threat to democratic institutions and personal freedoms.

Buterin describes the current landscape as a “dense jungle,” where Big Government, Big Business, and Big Mob work together, reinforcing each other's power. He expresses an inherent conflict within society: an eagerness for progress in technology and culture is met with apprehension towards these powerful entities.

Economies of Scale Undermine Traditional Safeguards

Buterin highlights that historical mechanisms designed to curb power concentration are becoming ineffective. The rapid pace of technological advancements, the rise of automation that minimizes collaboration costs, and proprietary technologies that inhibit reverse engineering are all contributing to this trend.

He points out that corporations are expanding their capabilities and sizes at unprecedented speeds. For instance, video game companies have shifted focus from delivering enjoyment to integrating features that maximize revenue extraction from players. Over the years, the allocation of cryptocurrency tokens to insiders has also surged.

Vitalik Decentralized Future - Coins allocated to insiders chart

Large corporations can now disproportionately influence regulatory frameworks, leading to a phenomenon identified as “societal deadweight loss.” Concurrently, governments risk transitioning from neutral arbiters to players in predetermined outcomes.

Buterin supports libertarian principles of minimal intervention, the goal-oriented approach of Hayekian liberalism, civil liberalism’s protections for communication and association, and the concept of subsidiarity that values local governance. He notes research indicating that authoritarian regimes classified as “personalistic” usually lag behind more institutionalized counterparts economically, underscoring the importance of structural integrity across political systems.

The Vulnerabilities of a Connected World

The essay discusses the theoretical concept of the vulnerable world hypothesis, asserting that technological advancements could lead to catastrophic events if left unchecked. However, Buterin presents a counter-argument through the notion of defensive acceleration (d/acc)—arguing for the development of open and universally accessible technologies that can keep pace with potential threats.

A Vision for Mandatory Technological Diffusion

To combat the concentration of power, Buterin proposes a “mandate more diffusion” strategy. This involves compelling technology sharing in order to promote innovation while mitigating monopolistic trends.

He highlights the importance of adversarial interoperability, which refers to the ability of new products or services to connect with existing platforms without requiring permission. He suggests creating alternative social media platforms with customizable features, browser add-ons that filter out undesired AI-generated content, and decentralized exchanges for cryptocurrencies that bypass centralized financial barriers.

By fostering alternative interfaces that remain compatible with existing platforms, users can engage without being subjected to value extraction, as seen in traditional web2 environments. Buterin cites initiatives like Sci-Hub as prime examples of how mandatory diffusion can enhance fairness and accessibility in science.

Additionally, he proposes mechanisms inspired by EU carbon border adjustments, suggesting that proprietary technology should incur higher taxes, while open-source technologies should face no levies.

Warning Against the Consolidation of Power

Buterin's essay comes in the context of broader scrutiny on Ethereum's complexity and centralization. He acknowledged that when protocols become too intricate, they require users to rely on a select group of experts, which undermines trust.

This concern is echoed by former Geth developer Péter Szilágyi, who revealed that a small group surrounding Buterin possesses significant indirect control over Ethereum's direction through funding and decision-making. This creates a "ruling elite” within the Ethereum ecosystem.

Buterin has openly criticized the growing collaboration between Silicon Valley and government authorities, expressing a preference for a balance of power rather than an alliance of the powerful. He compared historical libertarian approaches favorably against current tech leaders' engagement with government, arguing that the former reflects a healthier distribution of power.

Growing Adoption of Decentralized Systems

Despite the concerns surrounding centralization, the Ethereum mainnet is witnessing increased activity, with a record 2.2 million transactions reported on December 29.

Vitalik Decentralized Future - Ethereum Daily Transaction Chart

Moreover, transaction fees have significantly decreased, averaging just 17 cents, a sharp decline from over $200 in May 2022. This positive trend follows the implementation of the Pectra and Fusaka upgrades, which enhanced gas limits and validator efficiency, indicating a shift toward a more accessible and decentralized financial landscape.