Decentralisation: What is it and why does it matter?
What is decentralisation?
Decentralisation, as known in blockchain terms is the transferral of control and decision-making from a centralized entity (person, organization, or group) to a distributed network. Decentralised networks aim to limit the amount of trust that participants must place in one another and to prevent them from exerting power or control over one another in ways that harm the network’s performance.
Why is decentralisation important?
The concept of decentralisation is nothing new. Three basic network designs are often examined when developing a technology solution: centralised, distributed, and decentralised. While decentralised networks are frequently used in blockchain technology, a blockchain application cannot simply be classified as decentralised or not. Rather, decentralisation should be applied to all components of a blockchain program on a sliding scale. Greater and fairer service can be accomplished by decentralising resource management and access in an application.
Decentralisation’s Advantages
It creates an environment that isn’t based on bias.
No one needs to know or trust anyone else in a decentralised blockchain network. In the form of a distributed network, each member of the network owns a copy of the exact same data.
Increases the accuracy of data
Companies frequently share information with their partners. This data is then modified and stored in each party’s data silos, only to be resurfaced when it’s time to transfer it downstream. Each time data is transformed, the possibility of data loss or inaccurate data entering the workstream increases.
Points of weakness are decreased
Decentralisation can help mitigate sources of weakness in systems when certain actors are highly depended. Systemic failures could result from these flaws, such as inability to provide promised services or inefficient service due to resource exhaustion, recurrent outages, bottlenecks, a lack of appropriate incentives for effective service, or corruption.
Distributes resources more efficiently.
Decentralisation can also aid in resource distribution optimization, ensuring that promised services are delivered with improved performance and consistency, as well as a lower risk of catastrophic failure.
Livetree Platform
We are a totally decentralised social media network. That means you control the platform. We are transparent and open-sourced and want to make this a digital landscape for people of all walks of life. Make sure to SIGN UP TODAY.
