The concept of decentralization came much ahead than globalization as the usage of the word began way back in the 1820s. The historian and French political scientist Alexis de Tocqueville wrote that the French revolution began with a push for decentralization but became an extension of centralization. That was because the concept of centralization came into usage much earlier than decentralization. A new government structure was created by the post-French Revolution Directory leadership in 1794. Globalization, on the other hand, began its true process only in the 19th century when the transport costs suddenly dropped, which made the prices of commodities in Europe and Asia to converge. Although it is worth mentioning that the idea first came out during Christopher Columbus’ discovery of the Americas in 1942.
Today, decentralization becomes the next big step for the economic revolution. Thanks to blockchain and its undeniable power of decentralization. Many entrepreneurs are now applying this feature of blockchain into a variety of problem areas in different sectors. With decentralization, you can dismiss the need for costly and error-prone middlemen. These are obstructions to the progress of a huge diversity of industries such as manufacturing, healthcare, and education, which endangers the participants and the economy as a whole. With the decentralized feature of blockchain, you have the freedom to exchange money, goods, services, properties, or any valuable items transparently, and without any conflicts from middlemen or third parties thus, creating a more liquid economy.
The internet also plays a major role in this big leap on the economy through decentralization. We can fairly say that the internet has the economy, society, governments, and our life in general, has improved and prospered remarkably well. Even the power of blockchain’s decentralization technologies distributes across the internet systems. This is now an ongoing strategy for new business models far different than the traditional ones. This same blockchain technology operates on the internet for doing a thorough tracking of money, medicine, food, and industrial parts, among others. This is made possible through universal decentralized logistics systems. Decentralized systems enable every individual to have the power over their information, rather than the centralized vendors who keep the power and information to themselves such as Google and Facebook. Truly, the power of the internet is that the internet itself is decentralized.
The economic decentralization
Obtaining power from the decentralized internet and blockchain, economic decentralization is the next big step towards a healthier global economy. It’s not globalization that will get us to it because it perpetuates inequality in the world instead of reducing it. Even the International Monetary Fund admitted in 2007 that inequality levels in the developing countries may have increased with the penetration of investment and new technology by foreign investors. As power is returned to people, the rise of a true free market will begin. As it happens, everyone will be free to buy and sell anything that they want without having to worry about tariffs, commissions, borders, taxes, licenses, limitations, or any other regulations. Blockchain systems create a more secure network and environment. This, combined with decentralization, will effectively remove the risks of fraud and cyber-attacks. It is exciting to see more startups turn into decentralized strategies in building their businesses. If this happens, we can see a true big leap in the global economy sooner than we thought.