But slower and prone to error, because the same information has to be conveyed to all members of the system, That may have been an issue back when we used telegraphy. Nowadays information can spread rapidly thanks to the internet.

This decentralized system requires that every member is acting in good faith for the benefit of other members with no self-interest.

No? If a member starts acting maliciously then they can be easily just cut out by its peers. In contrast to hierarchical systems where you have to blindly trust those at the top.

Any cyberneticist would tell you that networks are superior to vertical hierarchies. Dont take my word for it, read up on complex systems theory and see for yourself.