Benefits of Decentralization.
1. Provides a trustless environment.
In a decentralized blockchain network, there is no issue of trust being betrayed. Each member in the network has a copy of the exact same data in the form of a distributed ledger. If a member’s record is altered or corrupted in any way, it will be rejected by the majority of the members in the network having correct records.
2. Improves data reconciliation.
Companies often exchange data with their partners. This data, in turn, is typically transformed and stored in each party’s data silos, only to resurface when it needs to be passed downstream. Each time the data is transformed, it opens up opportunities for data loss or incorrect data to enter the workstream. By having a decentralized data store, every entity has access to a real-time, shared view of the data.
3. Reduces points of weakness.
Decentralization can reduce points of weakness in systems where there may be too much reliance on specific factors. These weak points could lead to systemic failures, including failure to provide promised services or inefficient service due to the exhaustion of resources, periodic outages, bottlenecks, lack of sufficient incentives for good service, or corruption in a centralized framework of computers.
4. Optimizes resource distribution.
Decentralization can also help optimize the distribution of resources so that promised services are provided with better performance and consistency, as well as a reduced likelihood of catastrophic failure. The biggest advantage is, that if a central database where all of the data is stored faces an issue, there will be no way to access the database except when the issue is solved, and neither can new data be added in that time interval. But, in a decentralized network, even if a whole city faces issues with accessing the data, the data will still be entered and updated in the system from nodes all over the world. And this data will reflect in that city’s nodes as soon as the issue is resolved.
5. Data stored in a decentralized network is considered incorruptible.
Every node in a decentralized system has a copy of the blockchain. Data quality is maintained by massive database replication and computational trust. No centralized "official" copy exists and no user is "trusted" more than any other. Transactions are broadcast to the network using the software. Mining nodes validate transactions, add them to the block they are building, and then broadcast the completed block to other nodes.
Conclusion:
Peer-to-peer decentralized networks can facilitate more meaningful, direct human interactions, maintained by their participants according to an open agreement and without the need for costly intermediaries (third parties or central authorities).
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