What Cardano can change through decentralization

Many newcomers to cryptocurrencies are unclear about what exactly decentralization is and, more importantly, what it can change. This article will look at how the Cardano protocol is decentralized and then discuss what all can change in our society through decentralization.

How a centralized world works

The internet is at the heart of what we do and everything that happens on a digital level has an overlap into the physical world. If we want to exchange value with someone remotely, we have to take care of that in the physical world first. This means that both Alice and Bob need to open an account with their bank. In practice, they visit the office, submit the necessary information about themselves, and the clerk sets up the account. If Alice wants to send money to Bob, she must ask him for his account number. Bob will then see the transaction from Alice in his online banking and will know her bank account. It is important to note that the bank plays the role of an intermediary in the transaction. What does it actually mean to be a centralized intermediary in a traditional world?

It has two levels: digital and social. On the digital level, it means that there is a server between Alice and Bob that is managed by an administrator. Often it’s multiple servers, for example, if Alice and Bob each…