Intelligence is spread throughout decentralized systems

Decentralized systems do not hold intelligence in cliques where it is available only to elites, but distribute it throughout the network. When knowledge is power, this enables the entire network to act in effective ways—but only if they understand the shared objective and the parameters within which they can achieve it.

This brings us to the third principle of decentralization: an open system doesn’t have central intelligence; the intelligence is spread throughout the system. Information and knowledge naturally filter in at the edges, closer to where the action is.^[1]

This is not to say that “open systems necessarily make better decisions. It’s just that they’re able to respond more quickly because each member has access to knowledge and the ability to make direct use of it.”^[2]

Principles of decentralization:

1. When attacked, decentralized systems tend to become moreso
2. Decentralized systems are easily mistaken for centralized systems
3. Intelligence is spread throughout decentralized systems
4. Decentralized systems can adapt rapidly
5. Decentralized systems can grow quickly
6. Decentralization of industries tends to lower profits

#decentralization #centralization #systems

See also:

• All-Channel Networks can function without hierarchies