The Final Chapter of Decentralization

January 19, 2026

House of Cards

Over the past 15 years, the fields of computer science and finance have conducted a fascinating experiment. Through Bitcoin, we decentralized 'money'; through Ethereum, 'computation'; and through Filecoin, 'data storage.' We refer to this as the Web3 revolution, believing we have created a free world without central controllers. Yet a colossal contradiction we have deliberately overlooked remains: we have built decentralized protocols on centralized physical infrastructure.

This contradiction is akin to a free-trade zone established on the private estate of an absolute monarch. If the landowner decides to close the gates, the free transactions occurring within instantly vanish. To discuss true decentralization, we must examine the very physical foundation we stand on: 'connectivity.'

First, let us clarify our terminology. Many confuse 'Distributed' with 'Decentralized.' Google's data centers and CDNs are scattered globally, making them a physically 'distributed' network. However, since a single administrator can cut off access to a specific region with the push of a button, it is a politically and fundamentally 'centralized' system. Bitcoin was revolutionary from a computer science perspective, not simply because its nodes were scattered, but because it achieved network consensus without a central controller. This characteristic is the essence of 'Permissionlessness.' Since there is no master to grant permission, no one needs to ask for it.

Unfortunately, today's internet connectivity remains strictly the permissioned property. And historically, we have witnessed the terrible price we pay when centralized systems fail.
Do you remember the 2008 Lehman Brothers crisis? At the time, we referred to banks as a 'trusted third party.' But as Satoshi Nakamoto identified, they were not trustworthy entities; they were a 'Single Point of Failure.' It took us only a few days to realize that the system's managers could drive the entire network into a crisis for their own survival. Centralized trust is merely a security vulnerability.

More recent examples are far more direct and physical. During a critical naval operation, Elon Musk refused an emergency request from Ukrainian forces to enable Starlink service. Whether his intention was a good-faith attempt to prevent escalation or not is irrelevant. What matters is that a nation's military operations and the lives of millions depended on the judgment of a single CEO. This denial is a textbook case of the erosion of 'Trustworthy Neutrality,' as emphasized by Vitalik Buterin. A network where a specific entity can intervene arbitrarily cannot be a public good.

Look at Iran right now. Every time protests intensify, the government pulls the internet Kill Switch. They physically sever the lines to prevent citizens from connecting with one another. No matter how censorship-resistant an Iranian engineer's Bitcoin may be, it becomes useless if internet access itself is blocked. Balaji Srinivasan's talk of a 'Network State' or digital sovereignty is an empty cry unless the physical connectivity network is independent.

However, this critique does not negate all the value inherent in centralized infrastructure. Instead, the centralized system performs a unique role as a 'pioneer of technology through massive capital investment.' Early innovations, such as laying billions of dollars' worth of fiber-optic cables or SpaceX's development of reusable rockets, are possible only with centralized capital and efficiency, which dramatically lowers the cost of technology and leads to its commoditization. Our goal is not to replace all these centralized systems, but to resolve the risks of a 'Single Point of Failure' and 'censorship' that they cannot solve, using the technology successfully commercialized by the central system as a foundation. In short, only a system in which centralized efficiency and decentralized safety nets work in complementary ways throughout the technology development cycle can truly lay the foundation for digital civilization.

Returning to the connectivity network, why have we still not decentralized connectivity? The answer lies in the 'cost structure of infrastructure.' It costs trillions of won to dig up the ground, lay fiber-optic cables, or build base stations. The cost of building terrestrial networks was so high that only giant telecommunications companies or state powers could afford to build that infrastructure. High barriers to entry created a natural monopoly, making decentralization physically impossible.

Space Age

Recently, however, cracks have begun to appear in this sturdy barrier to entry. Space is undergoing Commoditization. SpaceX has dramatically reduced the cost of accessing space through reusable rockets and has proven that Low Earth Orbit (LEO) satellite constellations can connect the entire globe. It is now an era where not only nations or massive telecom companies, but anyone can deploy a 'node' in space.

Spacecoin's vision begins precisely at this juncture: combining cheaper space hardware with the incentive systems of blockchain technology. In the past, telecom companies had to own and manage every base station. But on the Spacecoin protocol, anyone can launch a satellite, and anyone can operate a ground station. The protocol fairly compensates them for the connectivity they provide.

Sovereignty

This decentralized model is what Naval Ravikant called "replacing networks ruled by kings and corporations with markets ruled by code." It is transforming the telecom market from a centrally planned economy to a free market.

The Spacecoin vision is not simply about expanding the communication network. It is about providing humanity with a 'physical retreat (Exit).' Even if a dictator on the ground cuts the cables or a corporate CEO changes policy, the satellites passing over our heads relay data without censorship. The satellites do not ask who you are or what data you are sending. They merely connect according to a mathematical protocol.

As researchers and engineers designing the system, we have an obligation to find and solve the most vulnerable link. Money and computation have been liberated, yet the centralized pathways they travel remain blocked. Opening those pathways is the final piece of the puzzle in completing the true meaning of 'sovereignty.' Decentralized connectivity is not an option—it is a prerequisite for digital civilization. We complete the final chapter of decentralization by decentralizing 'connectivity' through Spacecoin.