Centralization is Valuable

January 2, 2008

The web is a decentralized mechanism for creating and accessing consumable information. However, centralization is very valuable to people and that’s how we’ve gotten a lot of institutional brands.

Here are some examples of companies and the resources they have successfully centralized.

  • Google: Advertising Space
  • Wikipedia: Summary Knowledge
  • Slashdot: Software Nerd Culture News
  • Digg: General Newness
  • Delicious: Bookmarks
  • Blogs: Journals/Columns
  • Youtube: Videos
  • Flickr: Photos

Like steel, oil, rail, radio, television, electricity, mining, and any other resource, there are efficiencies and profit to be had from consolidation of a resource. This is received with relish and disdain by different parties. Industry consolidation often means the death of out of the box thinking. People fail to recognize that such changes set the backdrop for new revolutions. What should be hoped for is a healthy cycling between centralization and decentralization.

What are other examples of centralized business/resource pairs on the web?

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