The Three Buckets of Knowledge and the Importance of Decentralization

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Jul 11, 2023
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The Three Buckets of Knowledge and the Importance of Decentralization
Introduction:
In the pursuit of knowledge and understanding, there are three fundamental sources that offer endless learning and mental models: physics, math, and human history. These three buckets of knowledge provide us with the rules that govern the universe, life on Earth, and the patterns of human behavior. Additionally, the concept of decentralization plays a crucial role in various aspects of our lives, including governance, technology, and economic systems. By exploring the connections between these topics, we can gain valuable insights into how we can navigate the complexities of our world.
Physics, Math, and Human History:
Physics and math provide us with the fundamental rules that the universe follows. Through these disciplines, we can understand the principles that govern everything from the movement of planets to the behavior of subatomic particles. Similarly, biology offers insights into the rules that life on Earth adheres to. These rules are essential for understanding evolution, ecosystems, and the intricate web of life.
Human history, on the other hand, provides us with a unique perspective on the rules humans have played by. It is subject to the geological forces that shape our planet, as the surface of the Earth is in constant flux. History often repeats itself because human nature changes at a leisurely pace, and we tend to respond to recurring situations and stimuli in stereotyped ways. Hunger, danger, and sex, for example, elicit predictable responses from us.
Fragile vs. Strong Relationships:
Within the realm of human history, relationships play a crucial role. Fragile relationships are prone to breaking, while strong win-win relationships have a resilience that keeps parties together. Adaptiveness to changing realities is key to maintaining strong relationships. When the surrounding environment shifts, those who are unable to adapt are at a disadvantage. This concept applies not only to personal relationships but also to systems of political and economic organization.
Political and Architectural Decentralization:
Decentralization is a multifaceted concept that manifests in different forms. When discussing software decentralization, three separate axes come into play: architectural, logical, and political decentralization. Architectural decentralization refers to the number of physical computers that make up a system and its ability to tolerate breakdowns. Political decentralization, on the other hand, pertains to the control individuals or organizations have over the system's computers. Blockchains, for instance, are politically decentralized and architecturally decentralized, but logically centralized.
The Three Reasons for Decentralization:
Decentralization offers several advantages that contribute to the resilience and robustness of systems. The first reason is fault tolerance. Decentralized systems rely on numerous separate components, making them less likely to fail accidentally. The second reason is attack resistance. Decentralized systems are more difficult and costly to attack or manipulate due to the absence of sensitive central points. The third reason is collusion resistance. In decentralized systems, it is harder for participants to coordinate actions that benefit them at the expense of others. This is particularly important when considering economic models that involve coercion or targeted attacks.
The Importance of Decentralization in the Modern World:
In the modern world, the attacker often holds the advantage over the defender due to various factors. As a result, decentralization becomes increasingly crucial. Proof of stake, which relies on economic models and the behavior of protocol users, is favored over proof of work in this context. While hardware is easy to detect, regulate, or attack, coins can be hidden more effectively. Collusion, defined as coordination that is unfavorable to others, poses a significant threat. To mitigate this risk, relying on the decentralized nature of protocol users can provide a solution.
Conclusion:
In a world driven by the acquisition and dissemination of knowledge, understanding the three buckets of knowledge – physics, math, and human history – is essential. Simultaneously, recognizing the importance of decentralization in governance, technology, and economic systems can lead to more resilient and robust structures. To apply these concepts in practical terms, here are three actionable pieces of advice:
- 1. Embrace adaptiveness: Be open to change and continuously seek to adapt to new realities and challenges.
- 2. Foster strong relationships: Invest in building win-win relationships that can withstand the test of time and changing circumstances.
- 3. Promote decentralization: Support systems and technologies that prioritize decentralization, as they offer greater fault tolerance, attack resistance, and collusion resistance.
By incorporating these principles into our lives and society, we can navigate the complexities of our world with more resilience, knowledge, and fairness.
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