Decentralized networks have been a trend for quite some time now, but many business owners are still wary of adopting such networks for their businesses. However, decentralized networks are actually very useful, so here are the benefits of using decentralized networks.
#1 Less Likelihood That There Will Be A Single Point of Failure
Centralized networks are known for being susceptible to having a single point of failure. This means that if one thing in the system goes wrong, everything else might just come toppling down. This is why decentralized networks can be really great for businesses that want to avoid getting into such a situation.
When you use a decentralized network, one small detail can change everything for you. For example, imagine the bank’s website being disabled for maintenance. You will not be able to make any payments until it is up and running again. With decentralized systems, such a possibility is swiftly eliminated thanks to the logic of how decentralized systems work.
If you had a similar experience already, then you probably know how damaging it can be when a single point of failure is the reason for everything going wrong. So, decentralized networks can be very beneficial for companies and organizations that are struggling with this aspect of doing business.
#2 Customers/Users Don’t Need to Trust Only One Authority
Decentralized networks also enable you to put less trust into third parties. If you are having doubts about whether or not you need to invest in a particular cause, give your customers’ information to certain companies, and so on, then it is probably a good idea to reevaluate your priorities and think of ways you could approach the matter differently.
Well-designed decentralized networks allow you to rely on yourself and on trustworthy partners much more than you would with a centralized network. In the latter case, you might even have to deal with some shady companies who could end up selling your clients’ data. This is why it is much better to use decentralized networks.
However, you need to keep in mind that such situations can also happen in decentralized networks if you design them poorly. You need to be serious about your planning and make sure that everything is double-checked before you start working with particular things.
#3 There Are Fewer Instances of Censorship
With centralized networks, the government often has more control over the kind of media the general public gets. If the ones in power don’t want something to be shown, they can easily shut down an entire platform by restricting the traffic going to that platform’s servers. But decentralized networks make it harder to do such a thing.
Decentralized networks distribute the different actions within the system in a way that it will not be directly connected to the main authority. Peers in a decentralized network are connected to each other which allows for more communication between them.
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#4 There Are More Opportunities for Everyone
Centralized networks are usually closed platforms while decentralized networks are often open platforms. What this means is that the former provides fewer opportunities for everyone involved while the latter has more opportunities both for you as a business and for your clients or partners who could now get involved more.
Think of it as a way to increase engagement, get more ideas, and create a friendlier environment practically for everyone. Contrary to a common misconception, you will still be able to make money if there are many users in your open decentralized network, so don’t worry about making a profit being a challenge for you.
By the way, one of the best examples of open decentralized networks is the World Wide Web. All online users can create different types of content and easily work together when they need partners or collaborators. Besides, there is also an unlimited amount of opportunities.
#5 There Is More Potential for Aligning Network Ownership
Users who are your potential customers are usually more excited to participate in decentralized networks than in centralized ones not only because such networks give them more opportunities but also because they provide users with the potential to have more value in the long run. It sounds complex but it is actually quite simple.
The people who contribute valuable content to your decentralized network will be able to see their work become more valuable as time goes by and the network goes. However, with centralized networks, this happens a bit differently and only the company that controls the network gets any kind of value as the network grows.
Of course, not everyone likes sharing such things, but it’s true and has to be taken into account when you are choosing a centralized or a decentralized network for your particular company or organization to work with.
#6 Achievements Are Rewarded Appropriately
Last but not least, in decentralized networks, all of the work and all of the achievements are rewarded appropriately. For the users, it is very important because that is how they get recognized for all the hard work they put into their creation and get acknowledged for whatever outstanding achievements they might have.
In a centralized network, the situation is completely the opposite. It is possible for a centralized network to have a less meritocratic system which can be an issue in many cases for all the parties involved. Transparent rules, on the other hand, bring more trust into the community and create more opportunities for everyone.
In conclusion, decentralized networks can help you run your business more smoothly and create a completely different atmosphere in the workplace. Carefully consider the benefits listed in this article and decide whether or not you want to start using decentralized networks.