As of 2022, the decentralized identity market size stands at $285 million. At a CAGR of 88.7%, the size of this market will reach $6.822 billion by 2027.
A centralized technology implies that it’s controlled and run by a government, individual, or a single company. On the other hand, decentralization is a form of smart technology run by a network of participants.
So, no single participant can control or shut down decentralized technology. Today, decentralized types of technology have many benefits.
This article provides you with the undeniable benefits of decentralization.
No Need to Trust a Central Authority
Often, people trust companies and governments with information and money. While this is okay to some extent, there exist many examples where this trust lets you down on different levels.
For instance, you can trust a product to back up all your photos, only for it to shut down when someone else buys the startup or goes out of business. Also, social media companies can sell your information to advertisers who stalk you around the internet.
The decentralized technology allows you the freedom to reduce or abolish the trust you have with third parties.
Low Chances of a Single Point of Failure
With centralized types of technology, the chances of single points of failure are high. For instance, your productivity will stop when Gmail goes down since you can’t receive your emails.
Also, it becomes hard to pay your bills via online transfer if your bank’s website shuts down for maintenance. In decentralized storage, no single participant can take down the whole network.
You won’t worry about how many participants come and leave. All your applications will always perform their functions without interference.
Reduced Censorship
When a government tries to censor reports about what’s happening internally, it shuts down the citizens’ access to social media. For example, a government can shut down Twitter by halting the traffic going to Twitter’s central servers.
It becomes almost impossible to limit traffic on a peer-to-peer network in decentralized technology. Each outbound packet sent could be communicating with another peer on the decentralized network.
After receiving the message, the recipient can then forward the message along.
Open Development Platforms
Decentralization allows anyone to build tools, products, and services on decentralized networks. Often, the centralized types of technology will provide globally limited development opportunities.
Open development platforms allow for building more great products and tools online. A good example of an open network would be the World Wide Web (WWW).
This network has provided many growth opportunities for renowned businesses like Amazon.
Benefits of Decentralization
It takes time to develop and interact with decentralized technology. Still, more cases of security breaches and identity-related fraud will boost the growth of these types of technology.
Decentralization lets you enjoy the end-user advantage. So, you can maintain total control over the use of identities. With these undeniable benefits, it’s safe to say that decentralized technology is here to stay.
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