Introduction

Blockchains and tokenization might be the next paradigm in human operating system. Computers and the internet have enabled communication at the speed of light, making national borders less significant as boundaries. Blockchains aim to create secure, open, efficient systems for documenting ownership and verifying trust, with the goal of matching the speed and convenience of modern technology. We outlined 5 important points on why blockchains will enable a better networks and operating systems of tomorrow.

Some of these points are more abstract point which are not easy to measure the effect of. Therefore, we rely on analogies and common sense. As we thought of these cases we tried to pick points where the feature of the technology is can only be brought to existence by the blockchain technology. At the end, these latent variables of blockchain will improve the economic activity of humans.

We than point out what is further needed to improve in order for businesses, mainstream people and  countries to use cryptocurrencies and blockchains. Most of the mainstream entities cannot be expected if there is not a huge catalyzing event (examples may be banking system failure, large companies like meta, google screwing up, or a top down )  to use blockchains for the ideal of decentralization but can be expected to use for the utility of the ecosystem. The expected return should far exceed their intellectual, money and time investment.  So their transition should be convenient and risk free compared the early adopters. Diffusion of Innovations framework aptly captures the adoption curve of new technologies, delineating how innovations permeate through different sectors of society. For blockchain to move beyond the early adopters and innovators, it must cater to the risk-averse middle majority by offering tangible benefits that far outweigh the required investment and perceived risks.

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Decentralization

Decentralized web, which means that applications and services can be operated by a network of users instead of a single entity. This creates a more democratic and resilient system that is less vulnerable to censorship, hacking, or data breaches.

The case for decentralization on a tangent topic was argued by Daron Acemoğlu an economist and professor at MIT, on his book Why Nations Fail. Acemoğlu's argument is based on the idea that centralized power structures often create rent-seeking behavior, where powerful individuals or groups use their influence to gain advantages for themselves at the expense of the rest of society. This can lead to a lack of investment in public goods, such as infrastructure or education, which are necessary for economic growth.

In contrast, more decentralized power structures tend to be associated with more inclusive institutions, where power is more widely distributed and there is greater accountability and transparency. This can lead to more investment in public goods and a more level playing field for economic activity, which can support long-term economic growth.

Another argument on designing a distributed web can be drawn from distributed computing vs centralized computers. Distributed architecture  provides redundancy and backup in case of hardware or software failures, ensuring that the service remains available even if one server or data center goes down. Blockchain and transparent web is the closest we have gotten to building such a system for our organizations. Furthermore, it adds geographical distribution, and security.

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User Control

Next wave of blockchains will be more private which will give users more control over their data and privacy. Instead of relying on centralized companies to store and manage their data, users can keep control of their data, and choose how and when they share it with others. Besides the main issue on companies holding user data where its prune to hacks and attacks. Centralized data silo's also curb's the potential;

Limited innovation: When data is stored by centralized companies, it may be difficult for third-party developers to access or utilize the data in innovative ways. This can limit the development of new applications or services that rely on user data.

Lack of transparency: Centralized companies may not be transparent about how they collect, store, and use user data, which can lead to concerns about data ownership and trustworthiness.

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Incentivization

Web3 networks often use tokens to incentivize users to contribute to the network. This creates a more participatory ecosystem where users can earn tokens by contributing to the network's growth and maintenance. Token's are fast pace incentive token's which can allow global cooperation by providing ownership to participants without physical borders. By monitoring the token transactions better incentive designs can be made by utilizing the data's on blockchains.

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Interoperability

Decentralized apps  are designed to be interoperable, which means that different applications can communicate with each other across different networks. This makes it easier to build complex applications that can operate across different networks and create more innovative solutions.

Interoperability enables modular design: Interoperability allows different modules or components to work together seamlessly, creating a modular design that can be customized and adapted to different use cases. By enabling communication and collaboration between different modules, interoperability allows developers to build flexible, scalable systems that can be modified or expanded as needed.

Modular design promotes interoperability: Modular design structures a system into discrete components or modules that can be developed and tested independently, making it easier to ensure that each module is interoperable with the others. By breaking a system into smaller, more manageable pieces, modular design can facilitate the integration and customization of different modules, enabling interoperability between different parts of the system.

Interoperability and modular design are important concepts for creating flexible, adaptable systems that can be customized and scaled to meet changing user needs or business requirements.

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Innovation

Blockchains are a new paradigm for building applications and services that can leverage the unique features of decentralized networks. This creates an opportunity for new and innovative applications that can disrupt traditional industries and create new opportunities for growth. The previous cases for Decentralized web are the foundations of new innovations, the inherent schema of distributed, public web allows for modular architecture where builders can innovate on smaller pieces of a public good with less frictions. There is a new opportunity for younger generation to build new products and get funded across the world.

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Missing Pieces

The transformative potential of blockchain and decentralized technologies is well understood within technical and financial circles. However, mass adoption is currently hampered by a series of gaps in the ecosystem. To catalyze the transition from early adopters to mainstream users, several key infrastructural and usability challenges must be addressed. This paper outlines these missing elements and proposes potential directions for future innovation.

• Cognitive Overhead and User Experience: Blockchain's promise is hindered by high cognitive overhead for new users. The management of private keys, understanding of blockchain topology, and the fear of irreversible mistakes all contribute to a challenging onboarding process. Evidently, there is an acute need for solutions that simplify this experience to encourage adoption.

• A Trust-Enhanced Ecosystem: Security concerns add an additional layer of complexity. Users unfamiliar with the crypto world require reassurance against the risks of fraud and asset mismanagement. A secure yet straightforward ecosystem can significantly lower barriers to entry.

• The Role of Oracles and Verifiable Computation: Trustless oracles and off-chain verifiable computation will serve as the backbones for data integrity and scalability in decentralized systems. This will also enable real world information to be store on chain

• Zero-Knowledge Proofs for Privacy: Zero-knowledge attestations can revolutionize the concept of identity and information sharing in a decentralized ecosystem, offering a fine balance between privacy and transparency.

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To sum up

The decentralized technologies are at an inflection point. The current limitations, if not addressed, could curtail the long-term adoption and utility of blockchain. Each missing piece represents both a challenge and an opportunity for innovation and investment. By focusing on these key areas, we can accelerate the transition from a decentralized web for the few to a decentralized ecosystem for the many.

Blockchains might be the pioneer for a better operating system in humans. A similar analogy can be made to humans history and how hunter gatherers how lost to farmers. According to Pulitzer Prize winner Jared Diamond farmers were able to produce a surplus of food, which allowed for the development of larger and more complex societies. These societies could then develop new technologies and innovations, which further increased their productivity and allowed for even more growth and development. We believe blockchain & tokenized internet will enable new innovations and surpluses across the globe which will be superior to old system

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Please contact us for further discussions about the topic. info@blueflow.ai

References

1- Why Nations Fail: The Origins of Power, Prosperity, and Poverty - https://www.amazon.com/Why-Nations-Fail-Origins-Prosperity/dp/0307719227

2- Guns, Germs and Steel - Jared Diamond - https://www.amazon.com/Guns-Germs-Steel-Fates-Societies/dp/0393317552

3- Mapping Markets - https://jumpcrypto.com/writing/mapping-markets-blockchain-mass-adoption-potential/