Decentralization surrounds us in the digital marketplace. It allows us to break free from the chains of societal norms and freely trade amongst one another without the need for a centralized bank or government. By freely trade, I mean it allows anyone in the world to trade with who they choose at any given time, utilizing real-time price data from the decentralized market, not having to worry about fiat currency exchanges.
For example: I live in the USA and you live in Germany. We are able to trade decentralized currencies with each other, without having to worry about USD to Euro conversions. Also, the time difference does not matter - we both see the same prices at that given moment in time.
Although this already sounds great, how else does it benefit the digital currency markets and the every day user? Let's take a closer look at some pros and cons of decentralization!
Decentralization is defined as "the delegation of power from a central authority to regional and local authorities", according to Merriam Webster.
Decentralized markets greatly reduce the risk of hacking or intrusion from unwanted suspects, as the blockchain technology makes this extremely difficult. The wide variety of the growing blocks and hashes on the network make hacking into the system hard, much harder than, say, your average Bank of America website and/or database. The tracking of transactions also play a key role in one of the major advantages to decentralization. Everything is clear-cut in the decentralized market when it comes to transactions - all of the information pertaining to every transaction is available to anyone who is a part of that blockchain network. When making monetary transfers between banks, besides running the risk of hidden fees, the transfer may take up to a few business days. With cryptocurrencies being on a decentralized platform, you can assure yourself that both either your receiving or sending transaction will arrive to its destination within seconds, sometimes even minutes, regardless of where in the world it's going, at your own discretion. The lack of regulatory oversight from a bank or government sure does excite most people. It can also lead to lower gas fees to complete transactions on the blockchain, unlike a market that is regulated where they can change transaction fees at any given moment.
But is this "lack" of regulatory oversight safe? Some people argue that a decentralized market having no governing authorities could lead to a lack of assistance or legalities within the market. Legal enforcement is concerned in a decentralized market, even though all transaction history is available to the public. They fear that there would be no clear direction to taking action if action is needed within the blockchain. Of course, these are all speculations, and there are always two sides to everything.
I believe a decentralized market is becoming more of a necessity in everyday life. More and more foundations are coming on board with having a governed voting system between larger stakeholders within the foundation, for the betterment of the entire blockchain. With systems in place like these with full transparency, a decentralized market can thrive and continue to grow. Decentralized markets are becoming a driving force in the currency world, digital or fiat, especially as more business begin to notice the benefits of blockchain. A brief search will allow you to do some research into a decentralized currency that best suits you. Read up on it now, before the speculation becomes actualization.
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