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The Decentralization

Decentralization is one of the best and deepest innovations in the history of computing.

In its origins, the power of calculation was concentrated in the hands of very few. The three most powerful calculators in Europe added more computing power than the rest of the entire continent.

Then came the home computers. And now almost all of us have, in our pocket, at least one quad-core CPU with 2 Gb of ram and 8 Gb of Rom.

Today, there are no banks that have a mainframe (central computer) that comes even close to the computing power of its own clients. Not to mention the connection to the network: a million people with a connection of two Mb/s add more bandwidth than the bank's own mainframe can ever have.

In practice, the software that controls the bank would be much better if it did so in the mobile phones of its users, for the simple matter of resources.

Not even the powerful data centers of major companies such as Google, Facebook, Amazon, can ever exceed the sum of the power of all smartphones and personal computers of their respective users.

The fact that today the imbalance of hardware capacity is on the part of the user in such a pronounced way, changes things very strongly, and it is not difficult to understand how. The software will leave the data centers to end up in the pockets of the people. All because the software gravitates to where the resources are, and the hardware resources are in the pockets of the users, collectively.

Let’s get to the point. A service is decentralized when:

1. It is installed on your computer, smartphone, refrigerator, or any device, and does not need a central service.

2. Provides services based on cooperation with other devices.

After downloading peer to peer files, bitcoin has been the first and an exceptional example of how important a phenomenon of its kind can be. In conclusion, the very concept of decentralization is terrifying for many.

We are witnessing the birth of many projects able to decentralize traditional models. For example OpenBazaar for the Amazon model, IPFS for Dropbox, Twister for Twitter, Tox for Whatsapp, Steem for Wordpress, Zeromail for Gmail / Outlook, YaCy for Google. They are, for now, only examples without great pretensions, but they thoroughly explain the idea of ​​future potential.

The immense fortunes enjoyed by the current protagonists of the internet are mainly due to the fact that they have centralized all the resources in a single location. If someone or something appears to unexpectedly decentralize, their power disappears.

It is very feasible to build an Uber or an Airbnb without using any central server. With all the savings, freedom and resilience that derive from it. In fact, another characteristic of decentralization is resilience. That is, the ability to withstand attacks without breaking. In practice, it means that the number of users who will not stop working to maintain the network is immeasurably higher than the number of users needed to keep the same network on its feet. In the case of cryptocurrency, for example, the dark market is in itself more than enough, in terms of cash flow, to have the management standing. You can carry out speculations and oscillate the value as much as you want: the result is that the network will not fall. 

In five to ten years’ time, we will all use decentralized services. This will cause the fall of some major companies and the birth of others, those that will create the services and will be able to profit from a business model linked to customers, to the cryptocurrency, or mediation.

Or perhaps other models of business will be born: but what is certain is that, as is always the case, it will not be chatter, defamation or media terrorism that will stop a new disruptive wave of applications. It is an unstoppable wave, thanks to not only technology, but also due to the immense benefits it will bring to ordinary people. 

Without much effort, I can imagine that after a few years, decentralized applications can easily become "boxed" products. You purchase a box, it connects to the router, and you can get a taxi, a business, a bed & breakfast, or whatever you want, wherever you want, without intermediaries.

And all this technology can only be put into practice using cryptocurrencies. I will expand on this fundamental point, in another post that’s soon to come.

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