Why the Energy Sector Meets the Conditions for Decentralization
Decentralization. Digital autonomy. Circumventing corporate strangleholds on information. A new, democratized internet. The blockchain revolution has inspired a wave of ideological fervor around technological advancement that is unprecedented in the mild-mannered, minimalist world of the Silicon Valley tech giants. Crypto gurus, emboldened by new-found fortunes, decry centralized data systems, and herald an internet of no gods, no masters.
The Democratization of an Industry
It makes sense. When Facebook is listening to your conversations and tailoring ad content accordingly, and Equifax is losing credit card and social security numbers by the millions, burning the old house to the ground seems like a plausible solution.
Blockchain startups left and right have latched onto this ethos of disruption, vowing to fundamentally redefine established industries from the bottom up. The purveying sentiment seems to be Decentralize everything. While breaking the grip of old guard institutions is a great rallying cry, there are a few important question to ask before trying to democratize an industry.
Asking the Right Questions About Decentralization
Why was the industry centralized in the first place?
Industries like banking originally centralized to bring stability, security, and ease of use to consumers. While cryptocurrencies offer their own benefits, such as anonymous, worldwide transfers, fluctuating value, hackability, and over-saturation could prove that monetary decentralization isnt the perfect application for blockchain, especially in regards to widespread adoption.
Would decentralization improve the industry?
Decentralization is only valuable when there is a network of participants to decentralize to. If there is a single service provider or a passive user base, decentralization can make the system unnecessarily inefficient. Diverse networks with intermediaries that do not add value or security are best suited to decentralization.
Do people care enough to participate?
The average person doesnt want to micromanage every aspect of their digital footprint. Decentralization inherently encourages user participation. If users dont care about interacting, the system must either have some level of automation or might be best left centralized.
In the frenzy to decentralize via blockchain, many industries are introducing unnecessaryRead full story on Bitcoin News