We are entering a period where there is a lot of chaos.  Things are changing quickly and it is difficult to make out where things are going.  We live in a world where major corporations exert a great deal of control.   We then couple that with billionaires who have enormous [wealth](https://leofinance.io/@leoglossary/leoglossary-wealth) to insert their will as they see fit.

All of this can leave one feeling hopeless and fearful.

When it comes to [blockchain](https://leofinance.io/@leoglossary/blockchain) and cryptocurrency, we see the powers aligning.  There are some strong forces against what is taking place.   With the entry of [Wall Street](https://leofinance.io/@leoglossary/leoglossary-wall-street), we now have some of the most powerful institutions in the world starting to take over.  This is joined by the [governments](https://leofinance.io/@leoglossary/leoglossary-government) of the world starting to stand up.  After all, these entities are all about control.

[Cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency) is a dagger in what they are stand for.  We can see the shift that is going to take place.  It is clear as day.  However, to see that, we have to be able to grasp the powerful of decentralization.  There are some fundamental differences that we need to internalize to view how things will likely unfold.

What is interesting is that people are conditioned to think the opposite.  The power is not with centralization, at least not in the long term.

<center>![image.png](https://images.hive.blog/DQmWb2RHWs1PByfuTx8WaW2XGA35XZX2WecZmrxnKQGNyuv/image.png)
[Source](https://i0.wp.com/www.innovisor.com/wp-content/uploads/2020/09/Centralized-vs-Decentralized.jpg?fit=582%2C312&ssl=1)</center>

## Decentralization Destroys Centralization

This is a concept that is difficult for people to grasp.  We see the power wielded in this era by the likes of [Apple](https://leofinance.io/@leoglossary/leoglossary-apple-financials), [Amazon](https://leofinance.io/@leoglossary/leoglossary-amazon-financials), and Facebook.  How can they ever lose power>

It is a thought process that makes sense.  On the surface, it looks like an impossible battle.  Nevertheless, we have some traits that fully exemplify where things are going.

Centralized entities that use a hierarchical structure have a major advantage: efficiency.  They can get things done at a rapid pace, especially when compared to decentralized entities.  This is one of the reasons why many feel decentralization cannot compete.

The game changer does not come from speed and efficiency.  This only yields short term results.  True power comes from **innovation**.  This is something that centralized entities tend not to excel in.

Disruption rarely happens within an industry by the leading companies of the time.  In fact, when it comes to [technology](https://leofinance.io/@leoglossary/leoglossary-technology), that almost always comes from the outside.  This tells us a great deal about the centralized entities as well as their focus.

Basically, they are looking at maintaining the status quo.  Few companies are willing to blow up their entire business model in hopes they arrive at something better.  They simply are not going to take on that risk.  

Start ups, entrepreneurs, and business rebels, on the other hand, have nothing to lose.  They will start looking at things in a different manner and working towards that end.  This is how disruption occurs. 

[Decentralized](https://leofinance.io/@leoglossary/leoglossary-decentralization) entities have a lot of cooks in the kitchen.  People are free to work upon what they want.  This means that, as certain projects expand, the net gain is much greater.  Innovation is a natural result since there are experiments taking place everywhere.  Without a structured approval process, people simply start creating.  In the end, some of this breaks through.

Contrast this with established players who fall victim to their tendency to stop innovating.

## True Decentralization Within Blockchain

Recently, we saw a couple of events that should open everyone's eyse.

The first was the [Ethereum](https://leofinance.io/@crypto-guides/what-is-ethereum-eth) merge.  Since that time, by moving to [proof-of-stake](https://leofinance.io/@leoglossary/leoglossary-proof-of-stake-pos), it is evident how the coin voting their is totally centralized.  Block production is in the hands of a few.  This is of concern to those who truly understand the tenets of cryptocurrency.

We had a follow up to this with the hack of BNB.  In response, CZ ordered the chain shut down.  How does one person order the stoppage of a blockchain?  Naturally, this is only possible if said chain is fully centralized.  For many, this is no surprise since, despite his claims, we knew the block validators were nothing more than sock puppets.

[Hive](https://leofinance.io/@crypto-guides/what-is-hive-crypto-hive) is different.  We are now actively working on more layers that are decentralized.  This is turning the ecosystem into one of the more logical destinations going forward.  

Simply put, Hive is going in many different directions.  For this reason, it looks chaotic and has a negative impact in the short term.  Remember, centralization is more efficient.  However, in the long run, it falls short as innovation takes hold.

Here is where Hive can excel.  There are a number of projects being worked upon that have a great deal of potential.  We have hundreds of people fully dedicated to making a difference.  We can see this with games, [applications](https://leofinance.io/@leoglossary/leoglossary-application), [social media](https://leofinance.io/@leoglossary/leoglossary-social-media), and the general idea that we are "each a business".  

Think about that for a second: how many people consider themselves a business when they are at work?  This is not the mindset people have.

Hive is permissionless.  This means that anyone is free to construct what they wish.  Here is the major difference.  If you want something built, go ahead and do it.  There is no committee or protocol to follow.  Simply take action.

Some feel that viewing Hive through this lens is absurd.  However, if we understand the true nature of the centralized versus decentralized battle, we can see how the latter always wins in the end.

Keep in mind, the usually downfall of centralized entities is their lack of innovation.  Ultimately, they get put out of business by their own poor decisions.

We often talk about Hive being a long term process.  This is one of the main reasons.  Decentralization is slower in the short term yet the ability to innovate while avoiding stagnation emerges in the long run.

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