"Decentralization" is a word that is possessing millions of people nowadays all over the globe. Whether or not decentralization is a "weapon" being only used by those who are seeking justice and equal chances for all inhabitants of planet earth, most decentralization enthusiasts today are usually looked at by a "suspicious eye". Many people, and I am one of them, think that the advent of the blockchain technology has just ignited the true "age" of decentralization. Throughout this article, I will try to simplify the concept of decentralization and analyze the effects of the blockchain technology on today's global decentralization move.
What is Decentralization?
According to Google, Decentralization or decentralisation is the process of redistributing or dispersing functions, powers, people or things away from a central location or authority. According to the Business Dictionary, decentralization is the transfer of decision making power and assignment of accountability and responsibility for results. It is accompanied by delegation of commensurate authority to individuals or units at all levels of an organization even those far removed from headquarters or other centers of power.
The blockchain technology has created a "perfect" decentralized currency that is compliant with both definitions of decentralization. Bitcoin has no central authority, no central bank manipulating its price via modifying interest rates and no government in the whole world can control the price or supply of bitcoins.
Is Decentralization Good? Bad?
"Decentralization is Good; Decentralization is bad". We usually meet a lot of people who try to implant either idea in their posts, podcasts, social media posts....etc in an attempt to convince others with their own personal points of views, so I won't make any presumptions here, I will just lay down some facts and observations:
- The advent of the internet was based on the idea of creating a decentralized means of communications between all inhabitants of planet earth, that would be still working in the event of a "Nuclear war".
- At this moment now in time, people from different parts of the world are working to decentralize food production, power generation, global trading, 3D printing and the list goes on.
- Centralized industries and currencies can be manipulated by CEOs and Central Banks respectively; however, the fate of decentralized industries and decentralized currencies is only in the hands of each and every individual taking part in either.
So, I think I don't have answer this question now; "Is decentralization good? bad?"
The Bitcoin Blockchain Technology - The Igniter of the World's Decentralization Move:
The blockchain technology is by far the most innovative financial creation in the past 2-3 centuries. For the first time in history, anyone in the world can send money, or any other digital asset, to any other person in the world, without having to pay inconveniently high fees to a third party for just confirming the transaction.
The bitcoin blockchain is decentralized as far as the word "decentralization" itself might mean:
1- No central bank is controlling the supply or interest rates of bitcoin
2- Bitcoin is not simply Fiat "paper money" that is soaked in the sweat of unfairly paid workers and victims of wars all over the world. Instead, it is endorsed by an enormous hash rate that is composed of the computing power of every PC and machine connected to the blockchain to confirm transactions as they mine bitcoins.
3- The Bitcoin blockchain can be used to confirm any form of transaction (real estate deals, overseas business operations...etc) and the data will be stored for ever on the blockchain and no one can ever change it or delete it.
Bitcoin and the blockchain have been the true catalysts that have ignited today's global decentralization frenzy, to the extent that Bitnation has started struggling to create a "decentralized world", a world without borders.
As the world seems rushing towards another World War, decentralization echoes as a magical solution that can hold salvation for mankind. For the first time in history, people can unite and enjoy equal rights wherever they might be located. Isn't it time for a decentralized world? Hasn't the countdown to extinction of central governments already begun? Look at what we have achieved in just a few years by decentralizing currency? A market capital that is worth more than $58 billion and even more is yet to come.
1- Google's definition of Decentralization. https://www.google.com.eg/search?q=what+is+decentralization&ie=utf-8&oe=utf-8&gws_rd=cr&ei=fEgDVsq0JMWuUdnmjnA
2- The Business Dictionary. Definition of Decentralizations. http://www.businessdictionary.com/definition/decentralization.html#ixzz3mc49IRUA
3- The Decentralization Itch Published on July 25th, 2015 by John Ferguson. https://letstalkbitcoin.com/blog/post/the-decentralization-itch