What is decentralisation?
Decentralisation in web 3 is the next stage of the internet, where users are in control of their data and identities.
It’s a more equitable, secure and efficient internet where power is decentralised away from centralised institutions like governments and corporations.
Decentralisation in web 3 means that there is no central authority controlling the internet.
Instead, it is distributed among users around the world.
This decentralisation has many advantages, including improved security, privacy, and freedom of expression.
Decentralisation refers to the process of distributing power or authority away from a centralised location or body. This can be done in several ways, but the most common is to distribute power among many individuals, groups, or organisations.
This decentralisation of power can have many benefits, including increased security, improved efficiency, and greater transparency.
Some key features of web 3.0 include:
Decentralised applications (dApps):
These are apps that run on a decentralised network, such as the Ethereum blockchain. dApps are censorship-resistant, meaning they can’t be shut down by a single entity.
Web 3.0 applications (or dapps) are designed to run on decentralised networks such as the Ethereum blockchain, metaverse, IPFS, and Dat protocol.
These dapps are built using decentralised technologies such as blockchain, smart contracts, and zero-knowledge proofs.
This is storage that isn’t controlled by a single entity, like Amazon or Google. Instead, it’s distributed across many computers in a network. This makes it more secure, as there is no single point of failure.
Decentralised exchanges (DEXes) are another key part of web 3.0, which allow users to trade cryptocurrencies without entrusting their funds to a centralised third party.
A decentralised exchange is an exchange that doesn’t rely on a central authority, such as a government or bank. This means that it’s less susceptible to manipulation and fraud.
DEXes use smart contracts to match buyers and sellers directly, without the need for an intermediary. Decentralisation also extends to social media and other online platforms, which are increasingly being built on blockchain technology.
Pointers on the decentralization for easy and quick access to knowledge -:
- Decentralisation refers to the distribution of power or authority away from a centralised body or organisation.
- In the context of the internet, decentralisation refers to the shift away from centralised control by governments, corporations or other institutions, towards a more distributed and egalitarian model.
- One key example of decentralisation is the rise of peer-to-peer (P2P) networks, which allow users to connect directly with each other without going through a centralised server.
- Another key example is the development of blockchain technology, which enables transactions to be recorded and verified on a decentralized ledger.
- Decentralisation has the potential to democratise the internet and make it more accessible and equitable for users around the world.
- It also has the potential to reduce censorship and increase privacy and security online.
- However, decentralisation also has its challenges, including the risk of fragmentation and the need for robust governance models.
How decentralization can be defined in one word –
- Without a central authority
- Empowered individuals
- Distributed power
- Decentralised network
- Highly interconnected
- Dynamic and flexible
- Free from censorship
Steemit, for example, is a social media platform that rewards users with cryptocurrency for creating and curating content. In the world of web 3.0, there are no centralised points of control or censorship – the power lies in the hands of the users themselves.
What are the benefits of decentralisation?
There are many benefits of decentralisation, including:\
Without a central authority, dApps can’t be censored or shut down.
This allows for free expression and creativity without censorship.
The decentralised nature of web 3.0 means that there is no central point of control or failure.
This makes the platform more secure and private for users, as data is spread across many different nodes rather than being held in a centralised database.
With no central point of failure, decentralised networks are more secure against hacking and other attacks.
Additionally, because users own their data, they can choose how it’s used and who has access to it. Because there is no central point of control, web 3.0 is much more resistant to attacks and censorship than traditional centralised platforms.
This makes it an ideal platform for dissenters and activists who need a secure way to communicate without fear of censorship or repression in decentralisation in web 3.
This decentralised architecture also makes it easier to identify and fix security breaches when they do occur. Decentralisation helps to reduce dependencies on centralised systems. It also helps to improve efficiency, performance, security and resilience.
Decentralised networks are often more efficient than traditional centralised ones.
For example, because there are no intermediaries in a peer-to-peer network, transactions can be completed faster and at a lower cost.
The lack of a central point of control means that web 3.0 is much more open to innovation and creativity than traditional platforms.
This allows developers to create new applications and services without having to obtain permission from a central authority.
how anyone can use decentralisation knowledge to earn wealth in web 3?
Invest in cryptocurrencies –
Cryptocurrencies are digital assets that use cryptography to secure their transactions and control the creation of new units.
Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
Use your computer to mine cryptocurrencies –
Cryptocurrency mining is the process of verifying and adding transaction records to a public ledger (blockchain). Miners are rewarded with cryptocurrency for their work in decentralisation in web 3.
Create a decentralised application (dApp) –
A dApp is an application that runs on a decentralized network such as the Ethereum blockchain.
dApps are built on smart contracts, which are pieces of code that execute automatically when certain conditions are met.
Join a distributed autonomous organisation (DAO) –
A DAO is a decentralized organisation that is run by its members, who vote on proposals using a blockchain-based voting system.
Provide liquidity to an automated market maker (AMM). –
AMMs are decentralised exchanges that trade assets without the need for an order book. They provide liquidity by matching buyers and sellers and taking a small fee for each trade.
With the help of decentralisation, organisations can share data and knowledge across different machines which lead to improved learning and understanding.
This, in turn, results in better decision-making by the artificial intelligence systems.
Since decentralised architectures can be used to train machine learning models on multiple machines simultaneously, they can help reduce the overall cost of training these models.
- Decentralised training data – Machine learning models can be trained on data that is decentralised and not centrally located. This allows organisations to keep their data secure and Private.
- More accurate models – When data is decentralised, there is less scope for agendas or corruption, which leads to more accurate models.
- Increased privacy – With decentralisation, artificial intelligence can be used without infringing on people’s privacy as the data is not linked to any individual.