Decentralization Beyond Blockchain

Decentralization is a property of power distribution, not a technology. This essay examines non-ledger-based models of distribution and questions whether blockchains meaningfully decentralize power or merely repackage it.

The Problem with Blockchain-Centric Decentralization

Blockchain systems often claim decentralization while exhibiting significant concentrations of power:

• Mining pools and validators concentrate consensus authority
• Core development teams control protocol evolution
• Token distributions create economic hierarchies
• Infrastructure providers (RPC nodes, explorers) become dependencies
• Exchanges and custodians become chokepoints

A system where power is distributed across a different set of actors is not necessarily decentralized—it may simply have different centers.

Alternative Models

Federated Systems

Multiple independent operators running compatible implementations. No global consensus required. Users choose their trust relationships.

Peer-to-Peer Networks

Direct communication between participants without intermediaries. Resilient to individual node failures. Coordination through protocol, not authority.

Content-Addressed Storage

Data identified by cryptographic hash rather than location. Any node can serve any content. No central registry required.

Web of Trust

Trust relationships established through direct verification rather than centralized certificate authorities. Local decisions, global reach.

Evaluating Decentralization

Questions to ask of any system claiming decentralization:

• Who can prevent you from participating?
• Who can see your activity?
• Who can change the rules?
• What happens if key participants disappear?
• Where does economic value concentrate?

The answers reveal whether decentralization is structural or rhetorical.

OnionHat's Position

OnionHat does not use blockchain technology. Our systems are decentralized through federation, geographic distribution, and operational independence—not through consensus mechanisms that recreate centralization at different layers.

Decentralization is a means to an end: reducing dependency on actors who may not share your interests. The technology that achieves this is secondary to whether it actually achieves it.