THE RISE OF THE DECENTRALIZATION

Digital artwork of a traditional Japanese village at sunset, symbolizing the rise of decentralization in cryptocurrency. Features samurai, cherry blossoms, and traditional houses, reflecting traditional values. Includes Fushuma logo.
  • Building a Transparent Tomorrow on the Foundations of the Past.
  • Building a Transparent Tomorrow on the Foundations of the Past.
Join Investor-friendly Blockchain Platform News Channel on Telegram
Join Investor-friendly Blockchain Platform Grants

Decentralization: A Core Principle of Cryptocurrency

In the years since Bitcoin’s birth, cryptocurrencies have morphed. Initially a niche interest of cryptographers and tech geeks, cryptocurrencies now attract governments and the world’s largest corporations. During this period, the world has changed dramatically.

This evolution marks the rise of decentralization. It reflects the concerns that Bitcoin’s founder, Satoshi Nakamoto, hinted at when he mined the first Bitcoin block with a message to humanity:

The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.Satoshi Nakamoto

This message referenced the ongoing fallout from the Global Financial Crisis. Satoshi Nakamoto was telegraphing to ordinary citizens their need to prepare for what was coming. He warned of a global financial crisis caused by profligate Western governments. These governments would rob people of wealth as they institute policies to save themselves from their own failures over the last four decades.

Debt and Financial Instability: A Catalyst for the Rise of Decentralization

Today, Satoshi Nakamoto’s warning is coming true. Western debt has grown even larger since the Global Financial Crisis. Indeed, it now surpasses $226 trillion, more than twice the size of the entire global economy. In comparison, total world debt in 2007, before the crisis, was about 70% of the global economy.

This enormous debt creates a problem that has no solution: How to manage debt-repayment costs? For 15 years, central banks kept interest rates near 0% to prevent economies from collapsing into stagnation or deflation. That made expanding debts relatively affordable.

Now, however, interest rates are at 5% and higher in many parts of the world. Consequently, governments’ debt-repayment costs have soared. In the U.S. alone, the world’s largest economy paid more than $650 billion in interest payments in 2023. This is a record amount and nearly double the $400 billion the White House initially anticipated. Clearly, that number will only continue to rise.

This rise in debt and interest rates is unsustainable and could lead the world towards another Great Depression, potentially worse.

Moreover, the primary downside for humanity is that governments must destroy the value of local currencies to save themselves. Specifically, this scenario underscores why the rise of decentralization is crucial for creating resilient financial systems. By drastically devaluing the dollar, euro, yen, etc., governments will be able to pay down their extreme debts with less valuable currencies. Every government in history has resorted to this tactic when faced with the consequences of relying heavily on debt to run the nation, afford wars, and buy the people’s votes.

Satoshi Nakamoto’s Vision for Decentralization

Satoshi Nakamoto knew this history when he built Bitcoin. In fact, he knew history always repeats and that Western governments would do what every other government has always done—kill the currency. Therefore, he embedded decentralization as a core trait in Bitcoin to counteract this. In his view, no one should control a currency. Ultimately, such control enables modifications that benefit the controllers at the expense of others.

Nevertheless, more than a decade after Bitcoin’s birth, the crypto space risks violating the primary principle of decentralization. Specifically, blockchain developers are chasing speed and security, often at the expense of decentralization. This approach risks the foundational benefits brought by the rise of decentralization.

Certainly, speed and security are crucial to the long-term success of blockchain technology. However, without decentralization, crypto technology is at risk of losing its foundational purpose– to prevent centralized power from corrupting a currency to its own benefit and to the detriment of its users.

Fushuma’s Commitment: Supporting the Rise of Decentralization

To address this, Fushuma is reaffirming its commitment to the core values that Satoshi Nakamoto envisioned with Bitcoin. These values position Bitcoin as a remedy for the corruption of fiat currencies. Therefore, we recognize that the rise of decentralization is crucial for maintaining the integrity of cryptocurrency.

We’ve built a blueprint called the 'Philosophy of Decentralization.' This document outlines why the rise of decentralization is more critical now than ever before. It emphasizes the fundamental cryptocurrency values that ensure fairness and transparency in the financial system.

Learn more about fushuma

SHARE THIS STORY ANYWHERE YOU LIKE

SHARE THIS STORY ANYWHERE