What is decentralization?
Decentralization is a process of redistribution or allocation of functions, powers, people or things away from a Central location or authority.
Bitcoin is a decentralized peer to peer network that does not rely on a Central authority. No node in the network does not depend on any particular node in the circuit. Bitcoin works as long as each node is connected to the node, telling the truth, even if everyone else is lying. This is a key feature that distinguishes bitcoin and cryptocurrencies from other networks, which rely on Trustees to determine the truth.
Why does this matter?
To understand why decentralization is important, it is important to know the disadvantages of a centralized system. Decentralization is expensive because it requires costly (but valuable) mechanism confirmation of the results of the work to determine consensus. While transactional fees are currently cheap, the security provided for such transactions, are not cheap, as most of it is paid for by inflation. This will change with time, and the true cost will be revealed, or security levels do not correspond to what exists currently. Cryptographic and other decentralized services would have lost in the competition of Central services if it were not for significant advantages for a decentralized system to compensate for this cost.
Further problems with the centralized platform include predictable life cycle. When they start, they do everything possible to attract users and third parties, such as developers, enterprises and media organizations. They do it to make their services more valuable as the platform (by definition) are systems with multilateral network effects. As the platforms move up s-curve, their power over consumers and Resellers is growing steadily.
When they get into the upper part of the s-Curve, their relationships with members of the network varies from a positive amount to zero sum. The easiest way to continue to grow is to extract data from users and competing with the additions over the audience and profit. Historical examples of this are Netscape vs Microsoft, Google vs Yelp vs Facebook vs Twitter Zynga and its third-party customers. Operating systems such as iOS and Android behave better, although still taking a healthy tax of 30% will reject apps for seemingly arbitrary reasons and the desire to include the functionality of third-party applications.
As wins decentralization
It’s one thing to say that decentralized network should win, and another thing to say that they will win. Let’s look at the specific situation.
Software and web services are created by developers. There are millions of highly skilled developers. Only a small part of working in big companies and only a small part of those working on new product development. Many of the most important software projects in history were created by startups or communities of independent developers.
Centralized platform dominated for so long that many people forgot that there is a better way to create Internet services. Cryptographic networks are a powerful way of network development, owned by the community, and they provide equal conditions for third-party developers, creators, and companies. We have seen the value of decentralized systems in the first era of the Internet. I hope we’ll see it again next to the new companies, and one of those platforms — Baanx.com.
Baanx.com -the world’s first decentralized crypto Bank in the blockchain
Baanx.com it is a platform with open access, open source for the exchange license of the Bank between crypto banks.
These crypto banks allow qualified companies, individuals, banks and charitable organization to start their own cryptocurrency Bank on the platform with smart contracts.
Baanx.com provides the end user full control over their money is that the financial sector currently does not offer. With the advent of digital currency there’s no need to trust third parties storing their money. People can become to have their own Bank and wear your cryptocurrency with you anywhere.
Baanx.com will lead to huge changes in the market and disrupt traditional banking by scaling the size of the network of kleptomanka to levels large enough to compete with the established financial services sector. Their mission is to bring to the world everyday use of cryptocurrencies and create unhindered banking service for cryptocurrency and Fiat currency.