Topic: Decentralization: How Will it Lead the Technology's Innovation (Read 71 times)

The advent of blockchain technology is indeed a remarkable feature that was established and included in contemporary trading. It has become an essential technological advancement for the present time. Cryptocurrency to date can be used as a means of payment to a limited number of negotiations and/or activities. According to Iansiti and Lakhani (2017), blockchain is viewed by many as a disruptive technology that will revolutionize businesses and redefine companies and economies. In fact, crypto has successfully introduced itself in the market. Some companies now accept crypto as a currency in exchange for purchasing items and goods. However, the same is yet to be wholly adopted by the general public.

The concept of blockchain has presented the possibility to compose and complete a record of transactions and exchanges which may be distributed publicly or privately to the users of the chain. This can be defined as the system of decentralization. A decentralized network waives any form of control and governance from a single point of reference, allowing the people participating within the blockchain to freely conduct transactions and control their properties without any third-party interventions. Also in a decentralized setting, each member has the exact same copy of the distributed ledger, with an increasing level of security as the number of its members increases.

According to Lindman, Rossi, and Tunnainen (2017), there is growing anticipation at present that blockchain technology will have a remarkable impact on many sectors of the industry including but not limited to; financial services, supply chain management, transport, healthcare, fashion, and entertainment. This is slowly being realized today as people who use their intangible assets are coming together to utilize cryptocurrency for their livelihood, leisure, and daily needs. Decentralization of such technology will pose vast opportunities for outsiders and newcomers to join and participate in the conduct of purchasing and trading within the market through the use of crypto.

There has been a rise in the number of decentralized exchange platforms whose goal is to promote cross-chain trading towards different blockchain companies and cryptocurrency communities. For instance, the Blocknet, a blockchain interoperability protocol, provides a platform for integration and exchange between different blockchains. Its Block DX/DEX offers users the ability to exchange and trade via cross-chain atomic swaps. Since it is decentralized, all activities and transactions within a person's account are governed and controlled only by the user itself. As recognized by Short (2018), the existing blockchain solutions in the financial industry have eliminated the need for reconciliation and intermediation, enabling direct transactions between trading partners, similar to Blocknet's Block DX platform.

Trading in its nature is significantly important as it allows people to establish their financial assets without being affected by any imposed rules, regulations, and limitations, and the economic state of their country. It also secures increased protection against fraud and identity theft due to the secure nature of cryptocurrencies. Trading within decentralized blockchains also reaches the unbanked and underbanked, allowing them to participate, invest, and earn for themselves without the need to rely on the restricted number of centralized banks.

It is important to note that in the real practical world, the socioeconomic, educational, and cultural backgrounds of people are critical determining factors to consider in the adoption, use, and linking of cryptocurrency towards present-day technology. It is true that the exercise of blockchain decentralization will direct the evolution and promotion of technology. However, one must carefully bear in mind that not everyone has the means and financial capacity to secure and utilize these established decentralized blockchains and their respective cryptocurrencies.

The innovation of the present day's technology can undoubtedly be influenced by the blockchain's decentralization. Blockchain technology has offered an alternative mechanism with the way how people behave, socialize, purchase goods, and use modern technology for entertainment, work, business, and communication. It has also built the potential to build a foundation for creating unprecedented business models (Iansiti and Lakhani 2017) that remove intermediaries from external factors.