a16z Crypto's General Counsel presents three main decentralized frameworks for startups

ChainCatcher news, a16z Crypto's General Counsel Miles Jennings wrote about how to organize decentralization in startups. He proposed three main decentralization frameworks and explained the importance and implementation methods of each framework.

1. Technical Decentralization: Creating a trustless and autonomous ecosystem through blockchain and smart contract protocols. For example, Ethereum needs to protect the system from attacks by validators and node operators, while simple smart contract protocols can achieve technical decentralization by being deployed and immutable.
2. Economic Decentralization: Introducing digital assets makes the Web3 ecosystem more complex. For example, Ethereum uses its digital assets to reward service providers, creating a decentralized economic system. If too much value is concentrated in one person's hands, it could jeopardize the security and utility of the entire system.
3. Legal Decentralization: Decentralization can reduce the risks associated with asset transactions. For instance, decentralized exchanges eliminate the need for intermediaries, making traditional intermediary rules no longer applicable. For digital assets, if the Web3 system can eliminate information asymmetry and reliance on the efforts of managers, then securities laws may no longer apply.

Jennings emphasized that in a Web3 system, these three types of decentralization must be considered in conjunction, as changes in one aspect may affect the others, and a delicate balance must be found.