- May 14, 2020
- Posted by: Anita Iyer
- Category: Blog
Today’s world is connected, but not totally centered. Connections link people, cultures and ideas, but keeping the power with few people. We are now at a technological crossroads which is looking to change these incentives, and to keep the power in the hands of people. Thanks to Blockchain technology, a key component of this process, which enables censorship-resistant and peer-to-peer connections system; and allows network of interconnected computers- that does not rely on a central party- to facilitate the interaction, yet also it has the option to choose to allow a central authority to control certain tasks; for example, certain banks using blockchain will have access to information but utilize certain aspects of blockchain technology from speed of transactions and security. In contrast to what many people believe, blockchain doesn’t destroy economic, political or financial power, it simply distributes the power by using consensus to make each one responsible of their act.
What is Decentralization?
Decentralization is the elimination of a central party that has full control and access over a network; decentralizing control basically removes the need for intermediaries and middle-men. It is community-governed networks with collaborative and transparent coordination mechanisms. In simple terms, decentralization means less centralized power. One CEO cannot make impulsive decisions and take out the company’s money which will affect the revenue of the entire company; the money is held by Smart Contracts, which are impossible to release without proper criteria. Therefore, the distribution of political or hierarchical power could be reshaped by Blockchain, which provides a decentralized alternative to existing structures.
Moving from today’s ‘centralized world’ where powerful people control everything, from what you can say to how you can spend your money, to a more decentralized system where the power is divided.
The architecture of blockchain platforms is global, and therefore is immune to localized attacks; it is censorship-resistant, because there is no one from whom permission is required to join the peer-to-peer network, as long as one operates according to the protocol; it is open-source, so its maintenance and integrity are shared across a network of engineers; and it is distributed, so there is no central server where a large amount of value or information can be stolen.
Freedom, Transparency, Integrity
The concept of decentralization refers to transparency, freedom and integrity.
Decentralization leads to transparency. Transactions happen on a blockchain, which is permanently fixed to the ledger. This information is decentralized in a way that makes the ledger completely immutable. Let’s take the example of healthcare, patient data is held across different medical institutions in different formats and standards, making sharing of the data ill-suited for the modern user’s expectation for instantaneous access. Using blockchain technology to record patient information on a distributed ledger can allow different parties conditional access to a single source of truth where each interaction with a patient’s health data can be recorded on a ledger as a transaction with a time stamped audit trail. This makes access to a patient’s health information more secure (patient data is encrypted), can take out the inefficiencies with current data management practices and offers patients more control over their own health data including monetizing their own health data for research purposes and selected access chosen by the patient in a different medical institution.
Decentralization also gives way to more freedom. For example, if you are traveling and you want to use your local credit card, it is not guaranteed that it will work all the time, as some banks block its usage for suspicious acts; or if you want to send money to your family abroad, exchanges will charge you high transfer fees; with a decentralized technology, you won’t have to face such challenges as you are in control of your own money and you can transfer money anywhere in the world at a low cost. If you are looking to invest in businesses outside of your country, you can do so in a few minutes on the move, thanks to blockchain technology.
Trust is the foundation of every business relationship. Success is built on it and blockchain technology has given rise to a new platform for business relationships that combines ease of use. Blockchain-based platform, iOWNX offers you all the above on its single secure platform. Through iOWNX platform, you have the option to diversify your investment portfolio from health-care, oil and gas, technology or even E-commerce and retail industry; all the different sectors are available on one convenient and easy-to-use platform.
If you like to learn more about Decentralization, you can watch this short video.