The vulnerability of autonomous digital structures.
Public blockchains have a complex mechanism that empowers different participants (including developers, interviewers, validators, and users) by isolating and interconnecting their respective responsibilities. These actors are the new central authorities, with their own selfish interests, working together for a common purpose.
When we use a public blockchain, we enter into a relationship that is not controlled by trust. Once we start a transaction, we rely on the autonomous digital structure (the public blockchain) and run it the way it should. We are relinquishing control over the operations performed by the public blockchain.
A public blockchain, in other words, is replacing a regulated organization with a trustless, autonomous structure. Regulated institutions, such as banks, are regulated by public law, and "value exchange" is enforced by the central government. The trustless structure is implemented through a mathematical and decentralized governance model that can send values from point a to point B without manual control.
The governance model for public blockchains is far from fully decentralized. Complex social interactions to reach consensus are a long way from being replaced by algorithms. There are very novel ideas for managing these complex social interactions in autonomous structures, such as the EOS blockchain, Tezos or DFINITY.
In the near future, we may be able to trade value and commission many activities in the autonomous digital sphere. But no matter how we use the public blockchain, we will always need laws to regulate it to hold people accountable for having a sense of control.
This article is for information dissemination purposes only and does not represent any opinion and does not constitute any investment advice.