Decentralization: Why BitTorrent Outshines Bitcoin
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Understanding BitTorrent
Imagine a world where the Internet operates differently. The reality is that if we aim to decentralize the web, we already possess a robust protocol for that—BitTorrent. Unlike Bitcoin, which has garnered much attention, BitTorrent is the true pioneer of decentralized content sharing.
BitTorrent is a nostalgic term for those who recall the days of peer-to-peer file sharing. Unfortunately, these decentralized platforms have largely been overshadowed by centralized alternatives due to regulatory pressures. Yet, I still rely on P2P services where I currently reside, primarily because many streaming platforms are unavailable to me. This necessity drives me to explore options like downloading "Kiki’s Delivery Service" from alternative sources.
I locate a link on PirateBay and proceed to download the content piece by piece from various users. Instead of relying on a single corporate server, I'm accessing files from individual computers, sharing the load in a completely decentralized manner, aside from the website that connects us.
A remarkable feature of BitTorrent is its speed; the more people downloading a file, the faster it gets. In contrast to a centralized Internet, where a viral article can crash a server, every BitTorrent user effectively becomes a server, leading to impressive scalability without the need for extensive server optimization.
Moreover, BitTorrent's design makes it incredibly resistant to censorship. As long as one individual retains a copy of a file, it can be downloaded, regardless of actions taken against websites that host links.
In essence, this established protocol embodies the promises of Web3, yet it remains unspoken of because Web3 often prioritizes entertainment over true decentralization, keeping people engaged in the cryptocurrency gamble, which hasn't proven itself as a legitimate currency.
The Centralization of Cryptocurrency
As highlighted by Moxie Marlinspike, the founder of Signal, the reality is that cryptocurrencies are fundamentally centralized. This assertion may seem evident, given that cryptocurrencies revolve around private ownership. The so-called proof of concept thus far has merely been individuals possessing unique digital assets, a scenario that is inherently centralized.
Marlinspike took the initiative to create and mint an NFT, which ultimately contradicted the principles of decentralization and censorship resistance. After a brief period, his NFT was removed from OpenSea without notice. Despite reviewing the Terms of Service, he found no violations related to his concept of an NFT that changes based on its viewing context.
What struck him most was that after his NFT was removed, it vanished from his crypto wallet as well. This occurrence was enabled by the wallet's reliance on API calls made to a handful of companies that dominate the space—an example of centralization.
In Marlinspike's words:
"Given the history of why web1 became web2, what seems strange to me about web3 is that technologies like Ethereum have been built with many of the same implicit traps as web1. To make these technologies usable, the space is consolidating around... platforms. Again."
For cryptocurrencies or digital art to become functional products, they often require centralization. The blockchain protocol is inherently slow and not designed to support true decentralization.
The blockchain can be viewed as a subpar database that serves as a gambling platform. Although the database itself is decentralized, it struggles to process more than five transactions per second without significant issues. The idea of running the Internet on this system is quite ludicrous.
The Illusion of Web3
The backing of blockchain and cryptocurrency by wealthy elites should raise eyebrows regarding their revolutionary nature. Historically, wealthy individuals have not championed genuine revolutions; rather, this appears to be a marketing strategy.
If Web3 were truly decentralizing the Internet, what would investors actually be supporting? Decentralized protocols like HTML, TCP/IP, or BitTorrent are not owned by anyone; they generate immense value without capturing any of it, which is precisely what investors avoid.
In contrast, platforms like Facebook thrive because they centralize social interactions, allowing for targeted advertising. Similarly, Microsoft succeeded by centralizing operating systems, while Amazon did so in the realm of shopping. Investors seek the next Facebook or Amazon, not the next HTML. Anything that truly decentralizes power faces suppression rather than investment.
This dynamic mirrors the history of peer-to-peer file sharing. Napster introduced a genuinely decentralized system for sharing music and content, yet investors were nowhere to be found. Instead, they mobilized to shut down such initiatives, with corporations lobbying governments to protect their interests.
As a result, we saw the rise of centralized platforms like Spotify and Netflix, which exploit artists while enriching investors and copyright holders. The focus has always been on private property rather than the public good.
Actual Decentralization: A Threat to Profit
A genuinely decentralized Internet holds no appeal for investors, just as Napster did not. Profits stem from enclosing commons, not from creating them. If investors are interested in a technology, you can be certain it does not promote decentralization—just follow the money.
The financial incentives lie in centralization and gatekeeping. Web3 represents the latest iteration of this scheme, resembling a Ponzi scheme where tickets are sold to a nonexistent destination. It's purely profit-driven and fundamentally absurd.
The narrative surrounding cryptocurrencies, art, or the promise of decentralization is nothing more than a smoke and mirrors act—entertainment designed to keep users engaged in a casino-like environment, allowing the true stakeholders to walk away with substantial gains.
Chapter 2: The Realities of Decentralization
In this video, Bram Cohen discusses how BitTorrent inspired Bitcoin, offering insights into the underlying principles of decentralization.
This video serves as an introduction to BitTorrent for beginners, explaining how it functions and its significance in the world of decentralized sharing.