Recently, the word “decentralization” is widely heard. And only the laziest is not discussing it. And all this discussions are coming down to one the decentralization is the future of mankind. It will bring revolutionary changes in all spheres of ordinary life: finance, technology and politics. Let’s see what “decentralization” exactly is like. Also we will consider five examples of implementation this process to the life of an ordinary person.
According to Wikipedia, “Decentralization is the process of redistribution, dispersal of functions, forces, power, people or things from a central location or governing body”. From this definition it follows that the decision-making process changes through decentralization from the bottom up, which gives the average person more opportunities to influence it.
The theory of this process has its origins since the time of the revolution in France in the XIX century. It was then, Alexis de Tocqueville, a French politician and ideologue, proposed moving from total centralized control to the decentralization of politics and technology in order to prevent the bureaucracy from subjecting citizens of the state. But at that time society was not ready for such changes.
However, today scientific and technological progress allows the formation of comprehensive decentralized mechanisms and the implementation of the Tocqueville plan. The term “decentralization” appears when people are considering cryptocurrencies, 3D print, mesh-network and the collective use economy. Let us consider on real examples how decentralization is applied today.
Example 1. Safe banks
Every time making calculations in a currency, we hope and believe that the European Central Bank manages the issuance of currency and is effectively fighting fraud. At the same time, bank managers are not responsible for the poor quality of goods or services provided by our monopolized system.
At this time, decentralized currencies, such as bitcoin, are built on a system where power and risks are distributed. Users can be sure that everyone are following the previously set rules. The source code of the cryptocurrencies is open and this means that everyone has the opportunity to view and analyze it, as well as to choose its alternative from the set of competing cryptocurrencies or create their own token. The monetary revolution is taking place before our eyes and the cryptocurrencies are already competing with central banks.
Example 2. Energy independence
Electricity production in many countries is still centralized. Companies spend billions on the creation and maintenance of infrastructures with electricity.
The solution is in private power generation, like solar batteries, which can significantly reduce the dependence on centralized power grids. Every year in the world the number of solar panels is growing. And if you add powerful batteries, you will get an energetically self-sufficient society that distributes electricity through micro networks.
Example 3. Absence of intermediaries
When we use a plastic card, for example Visa or Mastercard, the companies of these payment systems always withhold a commission from all your transactions.
When we use for payment a cryptocurrency, we have the commission only for processing, while at the same time the transaction is transferred directly to other network members. The network does not ask who is paying whom and for what.
Example 4. New social network
All of us already know that all our transactions, e-mails, phone conversations and SMS are recorded. All popular social networks such as Facebook and Twitter give us their services for free in exchange for data that is sold to advertisers. So the solution of privacy problem is the decentralization of social networks.
Companies like ZONTO and Synereo have already created decentralized social networks of a new type – with full encryption and without a centralized database. In ZONTO and Synereo networks, advertisers are paying for users attention with coins of the system. And though the information exchange is absolutely free between friends, your interest is valuable.
Of course, new models of social networks will take some time to develop, but users already can choose a network with the protection of personal data.
Example 5. Independence of the production process
For a long time, industrial production was a completely centralized process. Investors was protecting their investments by registering intellectual property protection on the development. The ice broke out when Tesla published all its patents, allowing autonomous specialists to use their findings.
And the appearance of 3D printing brought the possibility of decentralizing production much closer. Now, having a 3D printer, skills and the necessary materials, anyone can download a CAD file and print anything he wishes.
According to the above examples, it is clear that the start has been made and that mankind has made steady steps towards a new, safe and free system of interaction. How long it will take us to rebuild our society depends only on ourselves. Once a person discovers a new world of decentralized systems and takes an active part in its implementation, the result will be forthcoming.