Since 2007 when the first blockchain, which hosted the pioneer cryptocurrency, was launched, more companies have realized the benefits of decentralization. It is not just individual businesses; even governments are now appreciating that blockchain and cryptos are inevitable.

From Switzerland to the state of Ohio, to mention a few, the world appears to be adrift towards decentralization and blockchain, and you, too, should consider using it in your organization.

As a new technology, applying it to your company might indeed look challenging, but it does not need to be. This post will highlight the main advantages of decentralization and blockchain to help you decide about adopting them in your company.

What is Decentralization in Blockchain?

Before looking at the main benefits of decentralization, it is crucial to understand what it is. In blockchain technology, decentralization means transferring control and decision-making from a centralized entity to a distributed network.

The aim is to ensure that key processes, which a few persons or officers otherwise make, are transferred to the network for higher efficiency. Let’s take an example of a banking institution.

When a customer initiates a transaction to send money through a bank, all the details must be checked by officers stationed in an office. This means that if the officers are on holiday, make errors, or simply dislike the client based on their race or name, the transaction is declined.

Decentralization takes this process from the centralized office to the network, reducing the risk of errors and allowing your system to work 24/7, including during public holidays.

Primary Reasons for Adopting Blockchain Technology and Decentralization

The most notable benefit of using blockchain and decentralization in your organization is that it provides a trustless environment.

Because the transactions are processed by nodes spread in the blockchain network, no one has to know or trust anyone. So, if you are buying a service, as far as you agree with the terms and conditions, it will be delivered. The public ledger is incorruptible. Other benefits include:

1. Helps Improve Data Reconciliation


When companies run transactions, the data generated therein is stored in silos, where it is at great risk of loss or damage. If your network gets attacked by malware, such as ransomware, the data can easily get lost, resulting in huge losses.

Well, you can say goodbye to these challenges after adopting blockchain and decentralization because the data is stored in immutable blocks where you can comfortably refer to it. This is why decentralization and blockchain are being considered evolutionary in data management.

2. Helps to Cut Down the Cost of Transactions by a Huge Margin

Blockchain technology is helping businesses to pull down the cost of processing transactions. If you take a step back and look at the traditional transactions, especially in banks, insurance, and other related fields, they are pretty expensive.

You can cut down these costs through decentralization. Because transactions run on blockchain networks, your business will not incur any costs related to maintaining offices, paying staff’s salaries, and other deductibles. Therefore, the cost of sending money or buying an item/service will be only a fraction of what it is today.

3. Helps to Improve the Speed of transactions


How long does a payment transaction in your organization take today? If a customer opts to pay for a service with a bank transfer, the chances are that it will take days or weeks. Again, if you opt for credit cards, there are many jurisdictions that do not support them, their cost is high, and the risk of identity theft is always looming.

This is why you should adopt blockchain to make the processing of transactions faster. With most blockchain networks, transactions only take a few seconds, at most, a couple of minutes. Also, the blockchain system does not expose the user’s personal information to third parties.

As you can see, blockchain and decentralization come with a host of benefits that you should not miss. Furthermore, as the technology develops and new products get developed, you will enjoy more benefits. Visit to learn more about blockchain and some of the key products you can use in your organization.

Challenges Of Decentralization

Decentralization is still in its early phase. People are still venturing to their full potential. It is true that decentralization will help your organization to grow. But, before that, there are a few challenges that you must overcome.

1. Difficult To Coordinate


While talking about the challenges, it is imperative to note that the organization enjoys substantial autonomy. This makes it difficult for the organization to coordinate effectively. With decentralization in the organization, every individual is responsible for their work.

That means they have their own thought process and words to say in any matter. This results in the team having different leaders, opinions, and schedules. This makes it tough for two different departments to work on the same project.

2. Poor Leadership Can Tarnish Company’s Reputation

An organization with decentralization can indeed do wonders. But, if the organization has a lower level of managers who lack the necessary leadership qualities, it can do the exact opposite.

This is likely to occur in large organizations that have a talented group of middle managers. With decentralization, organizations need to ensure that they have only the best in their team, which ultimately increases thot operational costs.

3. Expensive Teams


A centralized organization means every individual in the team needs to tackle responsibility for their action and operation. Hence, they need to be compensated more. This increases the total cost of the team formation.

This can quickly add to your monthly operational cost and may be more expensive than hiring a few managers. If your organization does not have the right finance to accommodate such a cost, digitalization will only put an additional financial burden on the organization.


Ultimately, every company has to choose a management structure that supports the organization. When trying to choose the best structure for your business, consider the overall business objective.

As long as you focus on the best leadership model, you will be able to find the right balance that works for your company.