Decentralization is the latest trend in the online world — but what exactly is it? And more importantly, what are the benefits? All of this is covered in the following guide.
Over recent years, the term ‘decentralization’ has started to grow in relevancy. This is a direct result of cryptocurrencies and blockchain technology exploding in popularity. Now, everybody knows about Bitcoin, Ethereum, and other popular cryptos, and decentralization is a big part of the conversation.
What is Decentralization?
Decentralization: When power and control are no longer held by one main authority (e.g., the government) and is instead spread between smaller entities or no entities at all.
The most obvious example of this is the cryptocurrency industry, where there’s no government or other central authority involved. All cryptocurrencies, from Bitcoin to Dogecoin, are decentralized and unregulated. Simply put, this means that no government or bank can control or guarantee the supply.
In many ways, this is great, as no control means crypto owners and investors have more freedom, and nobody can tamper with the blockchain technology. On the other hand, cryptocurrencies can be volatile, and if you invest in them, there’s no guarantee that the investment will work out. After all, if your crypto is hacked or stolen, nobody will be able to get it back for you.
So, to make everything crystal clear, let’s say that you invest in Bitcoin. All of your Bitcoin transactions will be recorded and can be viewed by anyone, but your name won’t be attached to them. On top of this, no third-party entity will have control over how you use your Bitcoin. Instead, only the Bitcoin owner (i.e., you) has control over what happens to it.
Which Industries Use Cryptocurrencies the Most?
Because decentralization is generally regarded as a good thing, it’s led to the rise of cryptocurrencies and decentralization more broadly across a wide variety of different industries.
For example, crypto is now a popular deposit and payment method across hundreds of online casinos, such as JackpotCity Casino. In JackpotCity City, you can play online pokies, video poker, and countless other classic casino games with your favorite cryptocurrencies, including the likes of Bitcoin and Ethereum. The reason why this is so appealing to players is because it allows them to experience greater privacy while gambling online, as they have no bank account or other details linked to the crypto transactions. There’s a lot to love and very little to dislike about this.
Aside from the online casino industry, cryptocurrencies are also big in the other following industries:
- Digital commerce
- Gaming
- Travel
- Real Estate
- Retail
With the travel industry, it’s becoming increasingly common for airlines and hotels to accept cryptocurrencies.
Through Alternative Airlines, you can easily book flights from 600+ global airlines using cryptocurrencies, which (again) is great if you’re a crypto investor and don’t want to pay for the flights using traditional currency like the US dollar.
Summary
Heading into the future, decentralization is going to keep on rising as cryptocurrencies become more popular. As a result, governments won’t have any control or say in what happens with cryptocurrencies and any other decentralized entities that enter the mainstream. Whether this is something you personally support or you think is bad, it’s certainly going to be interesting to watch it unfold.
