Blockchain technology has progressed from its use in cryptocurrencies to general applications that require its benefits. Many industries are now relying on blockchain for their various uses, particularly its digital decentralisation, due to its increasing promise of enhanced security and improved speed.
Decentralisation in itself is not a new concept. Three network architectures are typically considered when developing a technological solution: centralised, distributed, and decentralised. While blockchain technologies frequently use decentralised networks, a blockchain application cannot be classified solely as decentralised or not.
Decentralisation, on the other hand, is a sliding scale that should be applied to all aspects of a blockchain application. In addition, it is possible to provide better and more equitable service by decentralising resource management and access in an application.
Not only that, but decentralisation can also improve data reconciliation. Companies exchange data with their partners on a regular basis, and this data is typically transformed and stored in each party's data silos, only to resurface when it is required to be passed downstream. Each time the data is transformed, the possibility of data loss or incorrect data entering the workstream is introduced. Every entity has access to a real-time, shared view of the data thanks to a decentralised data store.
This makes operations and transactions much more transparent. In fact, various industries are now leveraging digital decentralisation for benefits such as fraud prevention and financial efficiency.
Download this month's Special Focus, as we look at what else digital decentralisation can do in various industries and how it will play out in the future digital landscape.