As all crypto-purists believe, the revolution that was bootstrapped by blockchain technology is the force of decentralization, or removing the overconsolidation of wealth and power that is present across all sectors of the economy. Immediately after Bitcoin gained popularity, developers jumped at the opportunity to use the technology to start decentralizing many industries. The most heavily developed is decentralized finance, known by popular moniker DeFi for short, but there are many other sectors that have begun to be decentralized, such as blank, blank, and blank. Today, I’m going to highlight some industries that have not yet been adequately tapped into in terms of the potential for decentralization, and what problems in the industry that decentralizing them would solve.
The first industry that needs to undergo decentralization is the cloud industry. The cloud industry, as of a year ago, is already a massive industry valued at over $250 billion dollars, and is projected to vault to almost a trillion dollar industry by 2027. As business across sectors completes its transition into the digital age, cloud services provide the best option for running all types of businesses. The issue with the industry is the same as always: it is far too concentrated with the largest companies. Running individualized cloud centers is far too costly and results in massive amounts of underutilized server space, so it makes much more economic sense for companies to outsource their needs. Google, Microsoft, and Amazon saw an opportunity here, and took it. With their massive reserves of cash, they set up massive data centers that have the facilities to process the needs of thousands of customers, and rent out the space accordingly. Azure (Microsoft), AWS (Amazon), and Google Cloud control about 80% of the market share of the cloud services industry, and because of this, they can upcharge at ridiculous rates and lock customers into a predatory ecosystem. There are already a few projects aiming to tackle this issue, but nothing has made a significant dent in the complete dominance of the three leading entities. Additionally, tons of cryptocurrency projects, the same ones who champion decentralization, run on these cloud servers. If the world, sector by sector, is truly going to achieve decentralization, the cloud services industry finds itself in a unique place as one that isn’t only going to be extremely profitable for clever projects to tap in to, but one of the most important linchpins to achieve true global decentralization.
Transitioning to a completely different sector of the economy than cloud computing, the music industry also shows promise as one that will be heavily disrupted. From the start, the music industry was always controlled by labels. Labels funded studio time, instruments, A&R men, and anything else the artists needed to be commercially successful, and in return, locked the artists into contracts where they received most of the profits from their work. During the early 2010s, there was slight hope for the model to be changed. With the growing popularity of social media, music sites like Napster, and being able to release music on YouTube, artists were able to gain popularity and commercial success without the need for a label. As social media and streaming services began to get more and more focused on maximizing profit, labels took that power back, and are now even more controlling than ever. As an upcoming artist, it is nearly impossible to achieve success without using the tools that the labels have such as streaming service algorithm favoritism, connections with professional social media promoters, and so on. With labels now controlling both the physical and online aspects of the road to becoming a successful artist, they have the freedom and ability to lock artists into long term contracts that sign over heavy percentages of royalties. In a truly decentralized world, no entity should have control of the profits from other’s talents, and right now, the industry is so predatory and consolidated that it’s practically begging to be decentralized. A small number of projects touting blockchain based tokenized royalties have emerged, but without much noise or making much of a difference in the industry. Over the coming years, the music industry shows promise for being one of the sectors to be disrupted the most by decentralization.