How Decentralization Can Fuel A New Wave In Innovation

The benefits of decentralization cannot be over-emphasized as it has already begun to prove its ability to not only fuel but to sustain new innovations. Whether in technology, management, economy or even government, we are about to witness innovations like never before, all driven by open source platforms and decentralized systems.

Decentralization is the future of technology! Image –

There is no doubt that we are approaching a time when everybody can genuinely have complete control over the technologies in their lives and their impacts on them, thanks to the rising trend in decentralization. With the current trend in technology, I’ll say we’re only a few years away from that reality.

But what is there in decentralization to fuss about and why is it so special? Well, I’ll tell you. Before the concept of decentralization came about, everything that had to do with planning, and making important decisions in governments, organizations, and management was all centralized. This meant that only certain people in top positions could give the okay before anything was done. It was like putting all your eggs in one basket.

But then, someone thought it would be even better to delegate authority, giving more people room to make decisions. These people don’t have to be in the top positions of authority, but they could have as much power as those on top.

The beautiful thing about decentralization is that it is open and free. Think of decentralization as an open floor at a conference, when people can rub minds freely on how to improve whatever subject matter is being discussed.

The Importance of Decentralization

Importance of Decentralization

Decentralization is the essential factor in Blockchain technology. Image –

Decentralization is probably the key to the future of technology. I know it must sound crazy, but that doesn’t make it any less right. When the idea of open source first became public, people thought it was crazy and wasn’t going to last long. But so far, the opposite has been the case. Open source has given rise to even better innovations[1] in science and technology than we ever thought possible.

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Open source is like having people with common ideas and drive in the same environment. I believe another word that best describes this is a community. And decentralization isn’t any different.

I’m not much of a gambler, but I’ll bet that whenever you hear the word decentralization your mind darts straight to the blockchain, which is the most common thing to do. Especially when blockchain, is the technology behind the topic in question.

It can be difficult to grasp how vital decentralization is without a piece of knowledge on some of its benefits, which are speed, more transparency, and better security than centralized systems. The main reason why decentralization has so much swag is that people can take part in making decisions.

With decentralization, there is no one person in control. Everyone is in control, and they are all accountable to each other as members of the community, and because of this, members of a decentralized system cannot act in their self-interests, especially at the detriment of others. It is also challenging to target decentralized systems because of the absence of a single fault point, and that’s what makes decentralized systems more secure.

You may also like to read: How to Choose the Top Cryptocurrency Exchange?

Trends in Decentralization

The stats shows the upward trend of growth in Blockchain technology innovation. Image –

In recent years, platforms like Ethereum have redefined what decentralization is and should be. While Bitcoin may have started the trend in what might become one of the greatest technological evolutions, similar technologies that operate on the same technology as Bitcoin keep springing up almost daily, one of which is the Ethereum. Like Bitcoin, it is an entirely open source and a shared economy.

At the beginning, of this article, I mentioned open source and what it is all about. When you read about successful companies like Facebook you will discover that they don’t have any contents that they can call their own. What they did was create an open platform where people who want to connect with each other can come together and do just that. That’s what open source is all about, but even with Facebook, there are still some restrictions as to what a user can really do on their account.

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Many tech Companies are starting to embrace the idea of a “shared economy” (as some call it) and they believe it is a new paradigm that is still in its infant stages. UBS, for example, has estimated that by 2027, blockchain will contribute a majority of the world’s economy and this estimate is said to be between $300 and $400 billion[2].

Incredible right? The exciting thing is that this estimate barely scratches the surface of the reality that is to come. The figure below is a statistical representation of the exponential growth that is expected to occur in the global economy by 2030.

Read More: What is Blockchain & How it is Going to Transform Social Media?

Decentralization Tools

Decentralization Tools

Smart Contracts is one of the decentralized tools. Image –

Decentralized applications are already a thing that has many developers excited and what not. The idea behind decentralized applications is to give the user the power to control his applications and how he uses them. Big tech companies like Facebook are already joining the bandwagon.

This year, in one of the early post of Facebook’s CEO Mark Zuckerberg[3] on January 4th, he stated that “One of the most interesting questions in technology right now is about centralization and decentralization”. This led many to speculate whether Facebook is looking towards decentralization. Well, we don’t know yet, but, they just might.

Blockchain which happens to be the center of this evolution has provided a compelling means of achieving what was once thought to be far-fetched. Decentralization tools like smart contracts, as well as decentralized applications (DApps), internet of things and decentralized exchanges (DEx), are just some of the many results of how important decentralization is, and what we can achieve with it.

The impact of decentralization from what we have seen so far is highly immense, and there is no doubt whatsoever that decentralization is bound to change the way we interact with everything. Open source is without a doubt, one of the essential tools for driving future innovations, especially in blockchains.

The reason why many believe this to be true is that we have seen it happen in the past with platforms like the Linux, which currently powers about 95% of most of the world’s supercomputers[4]. Don’t believe me? Well, the proof is in basically nearly every smartphone there is on the planet presently.

Final Thoughts

The benefits of decentralization cannot be over-emphasized as it has already begun to prove its ability to not only fuel but to sustain new innovations. Whether in technology, management, economy or even government, we are about to witness innovations like never before, all driven by open source platforms and decentralized systems. The new wave of innovations ahead of us is incredible, and decentralization is smack in the middle of it.

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The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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