Draft Quest Chain #1

Test your knowledge of introductory decentralization concepts and on the different types of decentralization.

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Correct answers are bolded

Question #1: What is the goal of this paper?

1. To clarify why people in the crypto community organize around the concept of decentralization
2. To help readers gain the necessary knowledge to join a DAO
3. To explain how decentralization can help DAOs avoid regulation
4. To clarify why decentralization is superior to centralization

Question #2: Broadly speaking, decentralization can be broken down into which of the following components? (select all that apply)

1. Technical
2. Economic
3. Legal
4. Financial
5. Regulatory

Question #3: How has the concept of decentralization been used historically?

1. To describe local governance structures where the responsibilities of planning & decision making are not made by a centralized authority, but rather by members of the group
2. To describe voting mechanisms where votes are tallied by autonomous machines
3. Decentralization was used historically to provide political freedoms to people living under authoritative regimes

Question #4: Why has centralized authority prevailed throughout human history?

1. Because it makes decision making more effective
2. Because it can cover a lot of geographic ground
3. Because although decentralization is better we haven’t had the technology available to make decision making effective over large geographic areas
4. The ability to cover large geographic ground is a limitation of centralized authority

Question #5: Which two mechanisms does blockchain enable that makes decentralization more effective?

1. Member representative governance models
2. Member developed and accessed decentralized economies
3. Member developed rules and regulations

Question #6: Does the term “decentralization” appear in the Bitcoin whitepaper?

1. No
2. Yes
3. It depends what is meant by “decentralization”

Question #7: Coinbase engineer Yuga Cohler is famous for saying what about Ethereum’s transition to proof-of-stake?

1. If successful, it will “prove the viability of decentralization as a social organizing principle”
2. “Proof-of-stake will help revive regenerative economies”
3. “Proof-of-work is far superior to proof-of-stake”

Additional questions I have chosen not to include, in the interest of brevity

Question #7: Although the term decentralization does not explicitly appear in the Bitcoin whitepaper, what concept does appear that has resulted in decentralization being used as a core idea in the blockchain industry?

1. The ability to construct organizations and concepts without a central authority or trusted third party ****

Question: Are all applications build on top of Ethereum decentralized by default?

1. No

Question: On a systems level, how are the elements of decentralization both discreet and related at the same time?

Answer:

1. Decentralization in the context of one component means something different from decentralization in the context of a different component, while at the same time sharing underlying activity that impacts other components.