Democracy and Decentralization — The Uncomfortable Truth

Many companies and enthusiasts in the decentralized technology market promote the virtue of integral democratic systems through decentralized technologies. While people can build their democratic system on a decentralized-public blockchain, democracy is a threat to decentralization at the protocol level.

Democracy: Government by the users, especially the majority.

Decentralization: Dispersion of power.

Democracy allows the absolutely reprehensible to be absolutely possible. Decentralized blockchains such as Bitcoin and The Ethereum blockchain, most known as Ethereum Classic, were designed with universally preferable decentralization principles — autonomously enforced at the protocol level (Code is Law). If the protocol was ruled by a democracy, then such universally preferable design is only relative.

If Bitcoin were democratic:

1. Bitcoin does not allow transaction reversal.
2. Majority rules to reverse transactions.
3. Bitcoin allows transaction reversal.

or

1. Bitcoin is censorship resistant.
2. Majority rules to censor user 123…
3. Bitcoin censors user 123…

Power to the people for the people, is only as good as the people themselves. However, democracy tends to conformity, not diversity.

1. John does not want higher taxes but Jane wants higher taxes.
2. Majority rules for higher taxes.
3. Minority conforms [John] to rule, or else.

Decentralized systems are not democratic and are accessible to everyone due to the universally preferable principle of sovereignty. Sovereignty is a natural human right that begins with the physical body. Someone ruling your body is just as wrong as a group ruling your body. Decentralized systems apply this philosophy on the protocol level: No group can rule your value or rule your exchange of value which is why truly decentralized blockchain, such as BTC and ETC, are accessible to everyone by protecting the human right to exchange and store value.

Some democratic denominations to think twice about in the crypto-verse; Delegated PoS, Democratic DAOs (most DAOs), Liquid Democracy, etc…