Andreessen Horowitz January 12, 2023
Jad Esber and Scott Duke Kominers

Decentralization is an imperative in web3 – and it can also be useful in other business contexts. In web3, the aim is to eschew centralization for security, openness, and community ownership, while in more traditional businesses, decentralization can help with stakeholder engagement and more informed decision making – for instance, decentralization is key to executing the popular concept of a “self-managed organization.”

Yet starting out entirely decentralized can be difficult or even totally impractical. Early design elements of a project or business often require more centralized vision and control. And centralization at early stages can make it easier to coordinate, launch, and rapidly iterate toward product-market fit.

Starting out with some degree of centralization, though, doesn’t necessarily force...

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