For a generation who grew up only knowing and surrounded by centralized institutions, this concept of the decentralized economy will be difficult to explain. Every aspect of our lives are controlled by centralized institutions including a most crucial aspect…..our finances but that is changing

Decentralization….

What does the term decentralization mean? It means there are no central authorities. For example, on the bitcoin network, there are no centralized authorities influencing any aspect of the network, there is no bitcoin company. No ethereum company, no digibyte company etc. These cryptocurrencies have no single entity that controls them. They are managed by hundreds and in some cases even thousands of individual miners and nodes (and block producers in the case of delegated proof of stake networks). These miners/nodes/block producers secure the network. The vast distribution of these miners/nodes across the planet makes cryptocurrencies secured from a single point of failure. No single entity can successfully manipulate the algorithm( the process) by which these cryptocurrencies are run.

To understand the concept of the decentralized economy further you should know that the blockchain technology on which cryptocurrencies are based can be used and deployed in a variety of way

Decentralized data storage: with nodes and their computers around the world, a decentralized data storage {think of it as google cloud services but instead of all the data being on one server at Google headquarters. The data are encrypted and scattered across thousands of computers( nodes) across the world with each computer( nodes) having an updated copy of all the data}

Decentralized marketplace: Think of this as an Amazon or an eBay but with no single specific physical location. The native cryptocurrencies of such platform are secured by nodes ( with computers and supercomputers) scattered across the world

Decentralized voting: Because each transaction on the blockchain is unique and can’t be altered. The decentralized blockchain is the ideal answer for free and fair elections

Decentralized platforms: These are platforms on which decentralized apps (Dapps) are built. Think of dapps as your regular android or ios app but instead of being operated on an android or ios software, dapps are operated on a decentralized platform not owned by any single company or organization. The decentralized platform itself is secured by hundreds of nodes/miner/block producers scattered across the world

The last point is the basis for a decentralized economy. As I write this, decentralized platforms are being built on which decentralized companies will be built that will rival today’s fortune 500 companies

Wait a minute…… are all these really possible?

Well, let me take you on a short trip into the past. Remember how the internet came and certain online businesses disrupted existing business models?…… Amazon sent existing brick and mortar shopping mall out of business…….Uber ruined the business of traditional taxis…..Air bnb began to challenge hoteliers

Well, the decentralized economy will do the same to these disruptors (i.e Amazon, Uber, Air bnb etc). why? Because due to this technology (i.e the decentralized blockchain technology) you can build a decentralized version of an Uber for example without a centralized company. In an instant, the rent-receiving institution is removed from the equation, making it possible for the service to be delivered to the consumer at a cheaper rate. Because such a decentralized ride-sharing app will run on its own token economy, for the time, the interests of all participants of this platform are aligned. The driver who most probably holds the token will want to do his/her well so more people will use the service thereby making him/her money from the fares he charges and also token appreciation. The rider who enjoys the ride sees the potential of token appreciation and buys more and tells friends and family about his/her experience with the platform.

This is just an example of a small segment of the economy which decentralized apps built on decentralized platforms will disrupt. Imagine the hundreds and thousands of decentralized apps (Dapps) that will be built to challenge existing centralized business models.

……..decentralized betting apps

………decentralized social media networks: think in terms of decentralized facebook on which content creator are paid for the contents they create

…….. decentralized record labels etc

……….decentralized gaming app ( with the possibility of micropayments)

Imagine the wealth that will be unlocked when decentralized business models gain mainstream adoption and the opportunity available now to invest in these decentralized corporations at this early stages. If you are thinking bitcoin has already stolen the show and very little gains are still possible, you are mistaken. We have not even begun to scratch the surface yet. The opportunity this decentralized economy provides for people in the developing economies cannot be over stated. For the first time we have the opportunity to invest in assets that top investors in the world have access to at the very same time they do. Investing in Bitcoin and other cryptocurrencies now will position you for the next big wave of money flow into cryptocurrencies

What you may be thinking the future might look like is fundamentally being altered right now. Those who understand this and begin investing now will experience the coming wealth transfer.

If you would like to know how to begin to get involved and invest in decentralized blockchain startups, bitcoin and other cryptocurrencies click here

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