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Decentralised does not equal better

Would you fly on a plane guided by a decentralised air traffic control system, even if the price was cheaper?..

Decentralisation is a term often thrown around when someone talks about blockchain and cryptocurrencies. At a recent TechCrunch event in Zug, Vitalik Buterin infamously quipped that “I definitely hope centralized exchanges go burn in hell as much as possible”.

It’s tempting to disrupt the status quo by getting rid of “legacy”. However, there is a fine line between democracy and anarchy. One shouldn’t confuse distributed independence with decentralised chaos. 

Distributed means that all the parties are on the same page and in agreement, and no single party can change things at will.

Decentralised means that no one is in charge or in control - and, hence, no one can be held responsible.

Blockchain is based, inter alia, on the ability to reach a consensus – yet there seems to be little of it within the crypto community. The joy of decentralisation, if you will...

 

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Comments: (4)

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 06 September, 2018, 13:54Be the first to give this comment the thumbs up 0 likes

What I struggle to understand is who are the various parties that are in agreement in a distributed architecture. Who decides who is a party and who is not?  For example, when I buy a flight delay insurance policy on AXA Fizzy or Atlast Etherisc - more in Flight Delay Insurance - Why Blockchain? - am I one of those "parties"? Who decides whether I am or I am not?

A Finextra member
A Finextra member 06 September, 2018, 16:02Be the first to give this comment the thumbs up 0 likes

Depends on the implementation. In simple terms, as an example of one of the advantages, once you submitted a claim using blockchain-based system, you know it's definitely there and cannot be modified.

Doesn't mean your claim will be processed faster, though...

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 06 September, 2018, 16:11Be the first to give this comment the thumbs up 0 likes

Actually, my question pertains to time of purchase, not claim. Besides, in these two implementations of Blockchain-based flight delay insurance, I, as a policyholder, DON'T submit a claim.

A Finextra member
A Finextra member 06 September, 2018, 16:50Be the first to give this comment the thumbs up 0 likes Think of BC as a “fancy database”. If you have DIRECT access, you are a transaction party.

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