The Major Benefits of Decentralization
Here we are, looking forward to leading the technological revolution. Here we are, looking towards the future of technology. What are we into? Are we moving towards a central power or a decentralized space? Which is going to lead the future of the digital world? Centralization or Decentralization?
Cryptocurrencies and decentralized technologies are booming and growing humongous. Industries have adopted blockchain technology; cross-border payments are high, individuals, corporations, and governments have gone through significant transformations. Thanks to you, blockchain, you made the fintech space more trustable, transparent, and traceable. Not just fintech, but all other industries that have led towards an unexpected revolution.
Today, we are looking at the decentralized space that made instant and scalable international money exchanges possible, bought in digital currencies, and highly secure and safe storage of information, funds, and private keys. What else would it be like without blockchain today?
Although we have centralized digital currency exchanges or a few running CBDC projects, these are not recorded on the decentralized platform, blockchain. This might be unsafe, face massive security breaches, and be prone to cybercrimes and fraudulent activities.
Today businesses are closely working to solve significant trading problems. Big giants are leveraging blockchain technology to build cost-effective solutions for cross-border payments and real-time transactions, minimize processing fees, and create instant access to financing. The companies are developing peer-to-peer platforms that are fully decentralized, efficient, and deliver the best to them.
By the way, the benefits of Decentralization are mammoth:
Trust — A High Priority
Governments and companies collect a variety of information from the users, which is entirely ok. But at the same time, this might go in another way. Like using personal data and selling it to advertisers, it will harm the customers’ privacy. And it is obvious that third parties could use your data, record your personal information and save it for other purposes. We never knew! But blockchain technology eliminated the risk of central ownership. As a result, no central authority will have the users’ data saved in records.
Multiple Servers — Fewer Failures
Since your data or record of transactional history is stored or saved on a decentralized system, It is less likely that it could get hacked or failed. Imagine Gmail going down, and your productivity gets a thumbs-down. Or maybe, imagine a bank’s website going under maintenance, and you can’t do online transactions, pay bills, or even check your account balance — It is quite the most dangerous and not welcoming scenario, right? But here, with a decentralized network, your applications remain up and running. No matter what, you will always have your information at your fingertips.
Decentralized Networks are Open
Decentralized networks are more likely open. Anyone can use them to build applications, services that benefit all. Unlike centralized networks, there are towering development opportunities. The networks offer an enormous scope to develop businesses, and these are what everyone is looking for!
The Potential Ownership
The most exciting thing about decentralized networks is that they offer ownership or economic stake in the network to value-adding people who contribute value to the network. This never happens in a centralized network. One single authority or a company controls the network deciding the processes and terms of the network.
Of course, intermediaries come with various challenges. Sometimes, making processes complicated and costly, time-consuming, and non-traceable. So the dependency on intermediaries is eliminated. Now that with no middlemen involvement, the data flows seamlessly, independently, and transparently.
Today, the aim is to get an independent, reliable, trustworthy, open, and transparent platform. Individuals or businesses, everyone needs an open-decentralized solution that showcases the most prominent potential — call it decentralized technology!