The most ardent blockchain enthusiasts can be forgiven for their infatuation with the blockchain as a decentralized technology.
As the blockchain continues to make inroads as an enterprise solution for all types of businesses, the term “decentralization” is, at times, uttered on repeat as if it’s a promise that its developers so desperately want users to believe in.
Fortunately, the decentralized nature of the blockchain consists of more than hopes and dreams. It’s a fundamentally new way of looking at networking, and it addresses many of the most significant concerns for businesses and their customers.
The blockchain’s decentralized network stands in contrast to the centralized servers that currently power the internet. Although our iPhones and laptops are modestly sized, they are immaculately capable. However, behind the scenes, much of their competencies are derived from large data farms positioned around the world.
The most prominent data farms are more than a million square feet. They dot the landscape, and they are responsible for much of the cloud computing, online service, and other digital amenities that we’ve come to love.
These data centers have to be sizable. A cloud computing survey by Micro Focus concluded, “People, businesses, and devices have all become data factories that are pumping out incredible amounts of information to the web each day.” In total, that data amounts to 463 billion gigabytes of data each day.
If that’s more data than you can readily comprehend, you are in good company.
This glut of data is a collection of all sorts of information that ranges from cat memes to YouTube clips to personal financial information. It’s all stored on these centralized servers, and more are being added every minute.
Centralized Can Be Compromised
Even the casual observer understands that customer data is not as secure as we would like it to be. The modern trend seemed to start in 2013 when retail Juggernaut Target endured a substantial data breach that compromised the credit cards of 40 million customers.
Stunningly, Target’s numbers pale in comparison to many of the most recent breaches. In the fall, credit monitoring firm, Equifax, lost control of the personal information of 145.5 million of its customers. Despite the violation occurring in September, new details were still emerging as recently as February.
Of course, no data breach is more notorious than Yahoo’s 2013 incident. Initially, the company estimated that 1 billion accounts were compromised. However, when Comcast purchased Yahoo in 2017, they revealed that virtually all of their accounts, more than three billion in total, were compromised.
As CNN so succinctly put it: “If it feels like 2017 is a banner year for cyber attacks, that’s because it is. And the hits will keep coming.” The centralized servers that power large corporations like Target, Equifax, or Yahoo are inherently vulnerable to attack and breach. After all, if everyone knows where the data is stored, it’s only a matter of time before bad actors get their hands on it.
That’s why the best method for ensuring data security while maximizing usability and transferability is to decentralize the network.
The Benefits of Decentralization
The blockchain decentralizes its network by subverting the need for large databases in a single location. Instead, the blockchain disperses its ledger across hundreds or thousands of computers located all around the world.
What’s more, blockchain technology doesn’t utilize a centralized authority to verify transactions. Instead, there are many different consensus protocols that guarantee parity while creating an unchangeable record of accounts.
In their 2018 Joint Economic Report, a bipartisan collection of U.S. Congressman concluded, “Blockchain technology essentially stores and transmits data securely, in large volumes, and at high speeds.” Their report went on to observe that “so far, the technology has proven largely resistant to hacking.”
This technology has critical use cases across several different industries but its origins in the financial space make it a particularly adept technology for transforming the financial sector.
At Digitex Futures, we’ve leveraged the power of the blockchain to create a decentralized platform that is indelibly secure and incredibly capable. For example, by using smart contracts on the Ethereum blockchain, a user’s account balance is secured on the blockchain. Digitex features cannot lose, manipulate, or confiscate your account balance at any time.
In the unlikely event that our platform was hacked, the thieves would have nothing to steal, so users can always have confidence that their digital assets will not be siphoned away.
In addition, Digitex Futures is using the blockchain’s decentralized structure to make our platform more democratic. Rather than maintaining full control of the decision-making mechanisms, we want our users to decide how we act and what we do – especially as it pertains to new token generation.
Therefore, although Digitex Futures is funded by generating new tokens, users democratically decide when, if, and how many new tokens can be created. We are giving the power to our users because they are the most critical component of our platform.
When it comes to the blockchain, decentralization is more than just a buzzword. It enables tangible improvements to our best technologies so that they better serve the companies that use it and the customers that rely on it. With more protection and better functionality, decentralized networking is poised to power the future of digital platforms, beginning with the present.