Decentralized and Centralized systems both condition human behaviour as individuals and as groups. However, they do it differently.
A centralized system is one in which there is some abstract architecture of power (e.g., the role of King or President or CEO or the role of Judge or Priest or General or the role of scientists, doctor or teacher) that constrains and shapes human behaviour. This means a few things:
1. People have access to power because of their position in the abstract architecture, not because of their p2p relationships. "Why do I have to listen to you? Because I'm the boss."
2. Flows of information are shaped by the architecture not p2p relationships. i.e., don't jump the chain of command, and "thats not my area" and "you aren't a credentialed scientist, you cant do science"
3. People's will is almost always coerced by their position in the abstract architecture. You can do what you want so long as it is within the rules.
A decentralized system lacks an abstract architecture. People's power is due to their p2p relationships. Someone might be a leader but that is because other people choose to follow her. Flows of information and relationships follow their best perceived paths without a preordained structure. "You are doing interesting work here in what we might call science." Note if the best perceived paths are bad, these flows will be bad. One of the big advantages of centralized systems over decentralized systems is that mediocre required paths can often outcompete freely chosen bad paths.
People's decisions are based on their sense of the flow of the p2p dynamic. Do I want to do science? Will other people think that I'm doing a good job at science? Will they help me? Will I get esteem for doing this sort of thing? There are real constraints in a decentralized system. But these constraints are based upon peerage relationships between real people rather than a preordained subordination on and to an abstract architecture. "Why should I listen to you? Because I know more about this than you do." For much more detailed discussion centralization and decentralization and their relation to strategy in different environments, see http://www.theimpactinstitute.org/Publications/Verdon-paper-formatted.pdf Return to Knowledgebase
A centralized system is one in which there is some abstract architecture of power (e.g., the role of King or President or CEO or the role of Judge or Priest or General or the role of scientists, doctor or teacher) that constrains and shapes human behaviour. This means a few things:
1. People have access to power because of their position in the abstract architecture, not because of their p2p relationships. "Why do I have to listen to you? Because I'm the boss."
2. Flows of information are shaped by the architecture not p2p relationships. i.e., don't jump the chain of command, and "thats not my area" and "you aren't a credentialed scientist, you cant do science"
3. People's will is almost always coerced by their position in the abstract architecture. You can do what you want so long as it is within the rules.
A decentralized system lacks an abstract architecture. People's power is due to their p2p relationships. Someone might be a leader but that is because other people choose to follow her. Flows of information and relationships follow their best perceived paths without a preordained structure. "You are doing interesting work here in what we might call science." Note if the best perceived paths are bad, these flows will be bad. One of the big advantages of centralized systems over decentralized systems is that mediocre required paths can often outcompete freely chosen bad paths.
People's decisions are based on their sense of the flow of the p2p dynamic. Do I want to do science? Will other people think that I'm doing a good job at science? Will they help me? Will I get esteem for doing this sort of thing? There are real constraints in a decentralized system. But these constraints are based upon peerage relationships between real people rather than a preordained subordination on and to an abstract architecture. "Why should I listen to you? Because I know more about this than you do."
For much more detailed discussion centralization and decentralization and their relation to strategy in different environments, see http://www.theimpactinstitute.org/Publications/Verdon-paper-formatted.pdf
Return to Knowledgebase