In the aftermath of the FTX collapse, a major topic raised on the table has been the importance of decentralization in relation to cryptocurrency custody. But there are other reasons to consider. And this is how they explain it from HUMAN Protocol, who shared with Cointelegraph en Español their vision of how to do things in terms of decentralization.
According to the HUMAN Protocol, a decentralized approach can offer a network with greater democratic behaviour, more efficiency, more security and more transparency.
How are you decentralizing the HUMAN protocol?
“The Coordination Layer (formerly known as the Routing Protocol) is the decentralization mechanism, and responds both to the need to decentralize decision-making -through voting- and to decentralize operator services -by encouraging individuals and groups to contribute to the network, and providing the transparency and trust infrastructure necessary for it-”, they specified from HUMAN.
While the Coordination Layer is being built, they have sought to decentralize the decision-making process through community votes on:
a) the Coordination Layer itself
b) the inclusion of HMT in LBank
c) a grant for a Maintainer of The Graph
“We have also initiated the decentralization of operation by spreading work transactions on the network through many blockchains, as supported by the Maintainer Program. The incorporation of new working groups, such as those of CVAT, also increases the decentralization of the network from the operational point of view”, they added.
Access
According to the HUMAN Protocol, it is important to consider that part of decentralization is the absence of permissions.
This means that anyone can access and use the network without the approval of a single central agent. The result is democratic access to the Internet and the advantages that its use entails.
“The drawback of a centralized gatekeeper is security, but the staking and slashing mechanisms (described in the coordination layer paper) are designed to solve this problem,” they remarked.
Market
On the other hand, they indicated that permissionless networks can lead to market efficiency.
“This is a case of openness and freedom, rather than top-down decision-making. It is about giving the market the necessary flexibility to satisfy their desires and needs”, they pointed out.
For example, in the machine learning industry, data annotation platforms often determine what can and cannot be annotated, either explicitly or implicitly by the services and tools they offer. “This top-down decision making certainly limits the potential of such services. It limits the potential of the industry, the business cases and the products that are developed”, they affirmed from HUMAN Protocol.
And then they detailed: “The HUMAN protocol offers a permissionless approach to data annotation. In this case, the absence of permissions is complemented by the flexibility and adaptability of the technology, which is open source, with customizable solutions to facilitate an ever-growing range of options and use cases. Open source technology is key to creating a system agile enough to cope with a field as diverse, demanding and fast-changing as machine learning and data annotation.”
Potential
A more technologically diffuse and decentralized framework could have the potential to be more robust than one with a single point of failure. Spreading out network operation among many applications and networks could decrease the risk of network downtime.
“Spreading a network like the HUMAN Protocol across many blockchains makes it a robust infrastructure that is less vulnerable to hacking. The same can be said for other types of operational decentralization, such as including more exchanges that users can access HMT on, more job pools that applicants can access, more applicants than workers can get jobs, more exchange oracles to process the work and more registry and reputation oracles to verify and pay for the work”, they highlighted.
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