The Power of Decentralisation in the Digital World
Decentralisation may feel like a trendy buzzword, but the reality is that it’s helping to redefine all manner of industries worldwide. Decentralised technologies are paving the way for more empowering user experiences, fostering greater trust and integrity in digital ecosystems and transforming efficiencies by removing traditional intermediaries.
What is decentralisation? In short, it’s a way of creating infrastructures or networks which are fairer and less prone to manipulation. With no central power or oversight, decentralisation helps to distribute the control of systems. The World Economic Forum (WEF) says the future success of business models and operations will lie in the orchestration of processes rather than the conception of ideas. Decentralisation will be key to enabling agile, operational excellence, bridging the gap between concepts and tangible outcomes.
There are many digital industries that are already being remodelled thanks to the advent of decentralisation. Below, we shine the spotlight on four sectors where decentralisation isn’t just a fad; it’s already intertwined.
The emergence of decentralised finance (DeFi)
There’s no greater example of decentralisation than blockchain technology. Blockchain is powering a DeFi revolution, removing the requirement for conventional financial intermediaries like banks. Using smart contract technology within a blockchain network, users can borrow, trade, lend and even save cryptocurrency. A smart contract can include the rules and stipulations needed to trigger funds or repayments on the blockchain – all of which can be transacted without the need for a middleman.
DeFi platforms are also available 24/7, unlike banks which have fixed opening hours. There are DeFi portals like Uniswap and Aave which are already empowering unbanked individuals to take greater ownership and oversight of their crypto assets.
Decentralised RNGs in the iGaming world
The iGaming industry is an increasingly popular digital entertainment market which is often under the microscope for fairness and integrity. One of the easiest ways to address these concerns has been the adoption of decentralisation. By incorporating verifiable and transparent systems like decentralised random number generators (RNGs), the outcomes of table games and online slot games have become truly random, with no chance of manipulation.
Take slots as a prime example. Many online casinos will credit the accounts of first-time players with free spins bonuses, effectively handing them risk-free spins on selected slot titles. Thanks to decentralised RNGs, there’s no way of casino operators influencing the outcome of these spins, using blockchain to generate truly unbiased results.
Decentralised healthcare systems which give patients ownership of their data
The healthcare industry is another one which is being reshaped by decentralised technologies. It’s removing the need for centralised patient data being pigeon-holed into government or third-party databases. This makes it challenging for patients to access or control their own medical records.
Blockchain-based healthcare networks put the power back in the hands of the patients, allowing them to securely store and share their medical history with healthcare providers as and when it’s necessary. It has multiple benefits – and not just for the end user. Decentralisation eases the administrative burden on healthcare providers. For patients, it provides a broader overview of their medical history, ensuring improved continuity of care that we all crave.
Transparent supply chain management using decentralisation
It’s also worth noting the impact of decentralisation on supply chains and logistics. Corporate supply chains have been known to be opaque and generally frustrating, raising ethical questions over the potential of counterfeit goods or exploitative workplace practices.
Decentralisation is forcing businesses to take more accountability for their supply chain management by recording every step of the logistics process via the blockchain. Decentralised supply chains mean products can be tracked from its raw materials all the way to the end consumer – a journey which also gives consumers greater confidence in the authenticity of brands.
In 2023, a report by Agile Dynamics predicted that decentralised blockchain technologies alone would bolster the global GDP by $2.1 trillion by the turn of the next decade. That equates to roughly 2% of the planet’s combined GDP. That may seem like an outlandish claim but, when you consider the increasing use cases for decentralisation, you start to believe that anything is possible.