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docs: πŸ“ add types and benefits of decentralization
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Add Vitalik's analysis of decentralization types (architectural, political, logical) and their key benefits (fault tolerance, attack resistance, collusion resistance). Include nuanced discussion of tradeoffs and limitations.
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davidgasquez committed Jan 8, 2025
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28 changes: 28 additions & 0 deletions Decentralized Protocols.md
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- When building a technology, consider: [does this centralize or decentralize power?](https://geohot.github.io/blog/jekyll/update/2021/01/18/technology-without-industry.html)
- Many decentralized protocols are trying to build next generation common digital infrastructure.
- Unfortunately,[nearly every crypto project realized that they could capture value (make a lot of money) with innovative tokenomics that looked a lot like Ponzis, or at least borderline securities fraud](https://andrewconner.com/common-digital-infrastructure/).

## Types of Decentralization

There are [three distinct types of decentralization](https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274):

- **Architectural decentralization**: How many physical computers make up the system and how many can fail before the system stops working.
- **Political decentralization**: How many individuals or organizations control those computers.
- **Logical decentralization**: Whether the interface and data structures look like a single monolithic system or can be split into independent parts.

A system can be:

- Decentralized in some aspects but centralized in others (e.g., blockchains are politically and architecturally decentralized but logically centralized).
- Architecturally decentralized but politically centralized (e.g., many companies running on AWS).
- Politically decentralized but architecturally centralized (e.g., some formal democracies).

## Why Decentralization Matters

[Decentralization provides three key benefits](https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274):

- **Fault tolerance**: Systems are less likely to fail accidentally because they rely on many separate components.
- **Attack resistance**: Systems are more expensive to attack because they lack sensitive central points.
- **Collusion resistance**: It's harder for participants to collude in ways that benefit them at the expense of others.

However, decentralization is not a silver bullet:

- Common mode failures can still affect decentralized systems (e.g., all nodes running the same client software with a bug).
- Pure economic models sometimes show that decentralization doesn't matter for security.
- There's a paradox between fostering good coordination (e.g., quick protocol upgrades) while preventing harmful coordination (e.g., 51% attacks).
5 changes: 4 additions & 1 deletion Large Language Models.md
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- LLM can build internal [[Knowledge Graphs]]s in their the network layers.
- ML system where humans are designing how the information is organized (feature engineering, linking, graph building) will scale poorly ([the bitter lesson](http://www.incompleteideas.net/IncIdeas/BitterLesson.html)).
- English is becoming the hottest new programming language. [Use it](https://addyo.substack.com/p/the-70-problem-hard-truths-about).

## Coding Tips

- Use comments to guide the model to do what you want.
- Divide the problem into smaller problems (functions, classes, ...) and solve them one by one.
- English is becoming the hottest new programming language. [Use it](https://addyo.substack.com/p/the-70-problem-hard-truths-about).
- Start with a template you like to bootstrap your project and setup all the necessary toolings and following a manageable project pattern.
- Before coding, make the plan with the model.
- Make the model ask you more questions to refine the ideas.

## Agents

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19 changes: 19 additions & 0 deletions Plurality.md
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# Plurality

- [Plurality is a political philosophy and framework](https://vitalik.eth.limo/general/2024/08/21/plurality.html) that seeks to create mechanisms for large-scale cooperation while preserving diversity and autonomy.
- Plurality stands between [[Governance|Technocracy]] and [[Decentralized Autonomous Organizations|Libertarianism]], offering a third way that emphasizes connections between individuals and groups.
- Plurality recognizes that there is no single model that can explain the world perfectly, and we should use a combination of different models instead.
- Key ideas of [Plurality](https://www.plurality.net/):
- [[Identity]] should be intersectional and social, using the entire set of a person's actions and interactions to determine trustworthiness.
- [[Governance]] mechanisms should count uncorrelated signals additively but correlated signals with diminishing returns.
- [[Organizations|Organizations]] should allow different degrees of membership, not just true-or-false.
- Local currencies and property rights can coexist with global mechanisms for cooperation.
- Plurality technologies include:
- [Polis](https://pol.is/home) for large-scale conversations that identify consensus across different viewpoints.
- Community Notes that surface content rated highly by people who disagree on other topics.
- Message Checker and other user-facing tools that protect users while preserving autonomy.
- Quadratic funding and other mechanisms that subsidize collaboration between different groups.
- Plurality is compatible with:
- Exponential technological growth, by designing property rights that force rising tides to lift all boats.
- Valuing excellence and expertise, through mechanisms like prediction markets with per-person subsidies.
- Local experimentation in social media, blockchain ecosystems, and local government.
9 changes: 9 additions & 0 deletions Politics.md
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- Absolute laws affect problems that are context dependent. The goal is to minimize misery.
- [Everyone has a strong pressure toward believing a political story where the agents of positive change are things and people that they can personally relate to. E.g: a lawyer might think that the best way to solve a problem is to sue someone, a programmer might think that the best way to solve a problem is to make open source software for it.](https://80000hours.org/podcast/episodes/vitalik-buterin-techno-optimism/)
- Governments usually don't have a great view into the [[Open Data|data]]. They can't look at the city's economy, energy, climate, and infrastructure in one glance. If they could, [even if poor governing decisions were made, it would be easier to see the impact and optimize them](https://magis.substack.com/p/simcity-and-data-commons).
- [Central planning](https://vitalik.eth.limo/general/2018/11/25/central_planning.html) and interventionism should be evaluated by counting "knobs" (adjustable parameters) rather than measuring absolute magnitude of intervention.
- Simple systems with fewer knobs are desirable because they:
- Have fewer points of failure.
- Are less likely to overfit to specific contexts.
- Are more resistant to corruption and special interests.
- Can more easily achieve legitimacy through comprehensibility.
- There's a difference between redundant complexity (many parts serving similar goals) and optimizing complexity (one knob per problem).
- What seems "simple" is often just familiar - cultural context and shared historical experience shape our perception of complexity.
- [[Systems|System design]] should balance mathematical/technical approaches with historical/anthropological learning to avoid extreme conservatism or dangerous utopianism.

## [Voting Theory](https://www.lesswrong.com/posts/D6trAzh6DApKPhbv4/a-voting-theory-primer-for-rationalists)

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