Vitalik Buterin Discusses Solutions to Combat 'Soulless' Centralization

In a comprehensive new blog post titled "Balance of Power," Ethereum co-founder Vitalik Buterin analyzes the growing threats from "Big Business," "Big Government," and "Big Mob." He highlights the weaknesses in the checks and balances that once kept these powerful societal forces in control, especially as these structures have eroded in the 21st century.

Key Takeaways

Critical Threats: Buterin identifies "Big Business," "Big Government," and "Big Mob" as significant challenges to societal balance.
Erosion of Checks and Balances: Historical mechanisms that managed power dynamics have broken down.
Technological Advancements and Centralization: Rapid tech progress allows powerful entities to centralize control more quickly than ever.
Mandatory Diffusion: Buterin advocates for enforced openness and interoperability in closed systems.
Neutrality of Government: Governments should maintain neutrality instead of favoring specific players in the market.
Adversarial Interoperability: This concept involves creating tools that integrate with existing platforms without needing the creators' permission.
Lido as a Model: Buterin points to the Ethereum staking protocol Lido as an example of a less centralized entity due to its decentralized structure.

Understanding Buterin's Vision

Buterin characterizes today's landscape as a "dense jungle," where previously altruistic sources of progress have morphed into elements of fear. He emphasizes that the traditional natural friction, which once prevented total centralization, can no longer be trusted. Therefore, he argues for engineered diffusion as a necessary remedy.

In his post, he discusses "adversarial interoperability" as a crucial strategy. This idea entails developing tools that connect with existing platforms independently. He supports this with examples that align with the ethos of Web3, such as content filters (like ad blockers or AI filters) and systems that facilitate value transfer without relying on centralized intermediaries.

Buterin cites the platform Sci-Hub as a demonstration of how mandatory diffusion can promote fairness, particularly in scientific research.

Addressing the overarching issue, he poses the question: "How do we foster a flourishing civilization in the 21st century without extreme concentration of power?" His proposed resolution is straightforward: advocate for more diffusion.

He calls for a synthesis of ethical frameworks that empower individuals to create meaningful impact while safeguarding against the emergence of dominant entities.

Buterin uses Lido, an Ethereum-based liquid staking protocol, to illustrate his point. Although Lido controls about 24% of the staked ETH, he argues that its decentralized structure makes it less intimidating than a centralized organization of similar size. He emphasizes that Lido comprises multiple operators within a decentralized autonomous organization (DAO), and he urges the community to remain vigilant to prevent it from dominating the staked ETH supply.