Why is Data Decentralization the Way Forward for a Business?

Data Decentralization the Way Forward for a Business

Centralized systems and solutions have become the norm for modern day businesses. While the shift to cloud and hybrid storage solutions have somewhat made it simpler for async teams to access data and share files, increasing reliability on these has made data fraud easier. In the wake of these issues, the need for decentralized identity solutions is acute.

Ways Decentralization in Blockchain is Revolutionizing Businesses

Before we explore the many ways decentralized identity solutions are revolutionizing businesses, let’s discuss what is decentralization in blockchain.

Decentralization in blockchain means that there’s no single point of failure. The interconnected nodes are spread across computers. This means even if a node is hacked, the entire system won’t collapse on itself or the entire security infrastructure won’t get breached.

Naturally, this is one of the best blockchain decentralization benefits: security. Infiltration is difficult and the data stored is safe. Plus, blockchain employs cryptography and encrypts all stored information. So even if a stored file gets compromised, chances are slim that the stolen information will get decrypted. This is because it can only be decrypted with the associated public key — a security failsafe bad actors seldom have access to.

However, the biggest advantage is how a decentralized structure makes data retrieval simple, effortless, and time-efficient. Hunting through a vortex of data doesn’t sound as daunting if authorized individuals have access to the files they require to do their job. Imagine not having to bypass firewalls, get manager approval, or going through dozens of paper documents to find the one file you need. Interoperability becomes easier, too.

Another way decentralized blockchain is paving the way forward for businesses is by prioritizing decentralized identity management. Decentralized identity blockchain empowers users to share only necessary information with the people they trust without necessarily giving away their identity. Users also have more control over their data and can dictate how their blockchain decentralized identity is shared and with whom. This reduces an organization’s burden as far as handling PII (personally identifiable information) is concerned.

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