Decentralization

Decentralization is not a new concept. It has been in use in strategy, management, and government for a long time. The basic idea of decentralization is to distribute control and authority to the peripheries of an organization instead of one central body being in full control of the organization. This configuration produces several benefits for organizations, such as increased efficiency, expedited decision making, better motivation, and a reduced burden on top management.

In this chapter, the concept of decentralization will be discussed in the context of blockchain. The fundamental basis of blockchain is that no single central authority is in control of the network. This chapter will present examples of various methods of decentralization and ways to achieve it. Furthermore, the decentralization of the blockchain ecosystem, decentralized applications, and platforms for achieving decentralization will be discussed in detail. Many exciting applications and ideas emerge from the decentralized blockchain technology, such as decentralized finance and decentralized identity, which will be introduced in this chapter.