Revisiting The World Computer: A TL;DR On Defeating Moloch With Decentralized Coordination

A few days ago, a group of brilliant crypto minds, with input from some of the most prominent builders in our space, released a paper titled Revisiting the World Computer:

As we navigate the frothiness of a bull market, it’s easy to lose sight of the broader mission that crypto is pursuing. At this point in the cycle, price seems to take up most of the oxygen in the room, but there’s a much bigger game at play.

Here’s a brief summary of the paper mentioned above. If you find it interesting, be sure to check out the full version.

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Revisiting the World Computer

The "World Computer" is a vision for blockchain as a global, decentralized system enabling trustless and permissionless coordination. It began with Bitcoin, which introduced decentralized digital money, and expanded with Ethereum, which brought programmable smart contracts. Together, these technologies shifted the coordination of value and trust away from centralized entities to transparent, self-enforcing systems.

Why Blockchain Matters:

Blockchain redefines how people and systems coordinate by embedding trust directly into code. Unlike traditional systems that rely on intermediaries or fragile relationships, blockchains:

• Eliminate the Need for Trust: Smart contracts ensure rules are followed without relying on people or institutions.

• Empower Users: Individuals own their data, identities, and digital property, free from platform control or exploitation.

• Enable New Financial Tools: Blockchain's transparency and openness allow global access to financial services like DeFi

• Promote Innovation: Developers can create open, interoperable applications, reducing reliance on centralized platforms like Facebook or Google.

Challenges of Centralized Systems:

Traditional digital systems, such as social networks and search engines, are controlled by centralized entities. These companies prioritize profit, often at the expense of users and developers. Examples include:

• Facebook’s algorithm promoting divisive content for engagement.

• Google’s prioritization of paid services over fair search results.

• Developers like Zynga, who were harmed by Facebook's unilateral policy changes.

These centralized practices lead to data silos, stifled innovation, and societal harm. Blockchain seeks to overcome these issues by providing decentralized, transparent, and fair alternatives. The piece draws attention to "Moloch," a metaphor for coordination failure, where self-serving individual actions harm the collective. Blockchain aims to defeat Moloch by embedding trust and fairness into decentralized systems.

Blockchain’s Journey So Far:

Despite its promise, blockchain adoption has faced limitations:

• Ethereum’s early architecture could handle only 15 transactions per second, causing congestion and high fees.

• Applications like DeFi and stablecoins found success, but broader adoption of decentralized systems lagged due to these performance constraints.

The Turning Point:

Recent technological advancements, such as modular blockchains and enhanced scalability, are transforming this landscape:

• Innovations like Ethereum's Layer 2 solutions and Solana's high-performance network are increasing capacity and reducing costs.

• These breakthroughs are creating "abundant blockspace," making it feasible to support not only financial applications but also non-financial ones like decentralized social networks, creative platforms, and real-time data systems.

The Vision for a True World Computer:

A "World Computer" is a shared, decentralized platform that offers:

1. Correctness: Guaranteed, fair enforcement of rules through code.

2. Openness: Built-in access for all users and developers, avoiding data silos.

3. Responsiveness: Real-time processing to ensure seamless user experiences.

4. Scalability: Capacity to handle global demand for storage, computation, and interaction.

These features would allow decentralized applications (dApps) to compete with and surpass centralized platforms in speed, usability, and trustworthiness.

Applications Beyond Finance:

While DeFi has demonstrated blockchain’s potential, non-financial applications represent the next frontier:

• Decentralized Infrastructure (DePIN): Systems like on-chain ride-sharing or energy grids could reduce costs and reliance on centralized entities.

• Social and Creative Platforms: Abundant resources make it possible to store and process non-financial data, enabling decentralized social networks and creative tools that empower users.

• Global Knowledge Graphs: Open systems for mapping relationships and interactions without centralized control.

These applications focus on what people value most—relationships, creativity, and personal growth—broadening blockchain’s appeal beyond finance.

Call to Action:

Blockchain’s potential is no longer limited by technology. We now have the tools to build a truly decentralized World Computer that fosters trust, innovation, and equitable access. By embedding trust into code, we can overcome the failures of traditional systems, align individual incentives with collective well-being, and defeat Moloch—ushering in a fairer, more connected digital world.

This is a pivotal moment to realize the full promise of blockchain as the foundation for a trustless, collaborative future. The World Computer isn’t just a vision—it’s an achievable future that depends on collective imagination and action.

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