In recent time, Blockchain technology has gained a momentum on the web. Along with bitcoin nerds and pioneering groups, there are many financial organizations that have become involved in this technology.

No doubt, blockchain is all set to disrupt the entire industry and payment system, and it will be not an overrated statement if we are saying that Blockchain and cryptocurrencies have already disrupted the economy.

The decentralization is beyond that, but Blockchain technology has already started developing decentralized networks across many industry verticals and large communities. Now, blockchain technology is not only related to Bitcoin, but it has also entered many industries, transforming the underlying model of giving and taking.

The technology has various applications in almost every field. There are thousands of new startups that use decentralized blockchain technology as the fundamental building block of their product or service. It is solving enormous problems in different industries like healthcare, finance, entertainment, education, logistics, transportation, etc. Generally, any industry can make use of a robust and secure decentralized network of independent nodes.

How Blockchain and Decentralization are Related?

Blockchain works in a decentralized manner, but decentralization is not a new idea. To understand these terms, it is not mandatory for you to be in Silicon Valley or be a tech-enthusiast.

In simple language, decentralization means that no one entity can control over complete processing. Distributed, centralized and decentralized networks are different concepts, and blockchain technology has the base of decentralized networks. You cannot find a single point that exists all the nodes, computers, and logical storages.

Reasons Why There is Weightage on Decentralization

The early days of the internet have seen a fair bit of centralization. And the main idea was that a single server farm could deliver massive cost benefits and economies of scale for all sorts of applications such as storage and computing power.

The integral flaws of a centralized system have become apparent. It is one of the main reasons why decentralized solutions have gained traction on the web. Let’s check out the benefits of decentralized systems:

No Point of Failure:

As we all know that crashes and failures are the two biggest problems with any centralized network. A single failure or crash can cause service disruption and mainly cause numerous problems. It might sound like redundancy to solve such problems, but incidents like 2016 failure at Amazon Web Services that led to different websites being inaccessible.

The Benefit of Scalability:

Talking about decentralized networks, they are mainly made up of independent nodes. The supply will easily increase when the load on a network increases. Such nodes can be easily home computers with an internet connection. The computer’s owners are effectively compensated, receiving digital currency for their contribution.

Independent Decision Making:

You can find various centralized systems that have a single authority, controlling all the power and makes all the decisions. Today, there are various examples of how bad decision making by a central authority can be for users, making the whole system messy. You can take an example of any social media company, having its complete control on its users’ information.

However, Blockchain technology and its whole implementation can take some time. There are many organizations, which are trying to implement Blockchain technology at initial stages. When people think about Blockchain technology, they want to have a sound understanding of structure, implementation and effects of it. Overall, Blockchain is a revolutionary concept and has the power to change the way different industries are working and transforming.