Let us understand what decentralization means in the first instance!
A Decentralized Market or the concept of decentralization indicates the balance of authority and responsibility in an economy. Suppose, your money is with the bank, you have complete authority over the same. But the bank maintains responsibility.
Under a decentralized market, it is believed that technology enables the holder of money to deal directly with the concerned party without any interference from a third party like banks. Therefore, Technology is an enabler that gives you more freedom over what is yours, to enjoy.
How Does A Decentralized Market Work?
Well, it is very simple with technological development. Technology allows a user to control their devices to a great extent. In a decentralized ecosystem, these devices are allowed to communicate freely. In this way, a network is formed which enables the users to interact with peers.
Some Examples of Decentralized Markets are:
– Forex Market: There is no physical location where an investor locates the shares and trades them. The forex operates over the internet.
– Real Estates
– Clearing Houses
– Virtual Markets: A market that has been developed over technology and operates completely over the advent of tech.
A deeper dive into the Virtual Markets shall lead us to the upgradation of blockchain technology, which led to the innovation of cryptocurrency. Because these markets are decentralized, they are not regulated. Therefore chances of scams and frauds are relatively higher in this universe.
A digital currency is usually developed like ModiCoin, which is a bank-free method to invest, trade, and interact with your peers. Ownership of finance can be transferred easily, with lightning speed without any third-party interference.
Well, there are certain advantages and disadvantages of the same. Let us look at them one by one.
Advantages of A Decentralized Mode of Payment:
Transparency: Crypto tokens like ModiCoin facilitate the user to great standards of transparency. Users rely on businesses and brands that are credible and transparent. Therefore, a decentralized token currency makes your business more believable and authentic.
Flexibility: Undenied! ModiCoin authorizes the holder supreme flexibility and control with lightning-speed cross-border transactions. Unlike traditional currency, crypto tokens can be conveniently transferred. Not only that, it allows the consumer to stay in complete responsibility for what he owns.
Efficiency: Given the control and flexibility, cryptocurrencies like ModiCoin offer great speed in transferring funds from one account to another. For transactions that take weeks with a bank to be cleared, token coins complete them with precision under seconds.
Trust: Furthermore, the above highlights add to a reliable token currency. As stated earlier, your client base shall grow stronger if your brand is reliable. Decentralization, in this manner, eliminates trust difficulties. Not only does it help reduce cost, but it also establishes healthy clientele foundations.
Disadvantages of A Decentralized Mode of Payment:
No Regulatory Body: The decentralized currency is not governed by a federal agency. Hackers across the globe may access your crypto wallet and move funds without your authorization. Obscenity based on technology and other fraudulent activities has seen a rise in the initial stages of crypto development. But, the mechanism on coins like ModiCoin has been designed so as to elude any apprehensions. ModiCoin’s architecture is safe and secure. It shields the interests of investors and provides them with a superior value.
Responsibility and Burden: Under your complete accountability, which implies that the burden of loss or risk can not be shifted to any intermediary. Therefore, in case you face any uncertain loss, you are completely responsible for letting that happen. A lot of techniques have been defined by developers to prevent and escape manipulations and fraudulent activities done by hackers. It is crucial to driving safely. Although, crypto tokens like ModiCoin ascertain to prevent unethical and illegal activities at the root. Therefore, a safe space for token aficionados is guaranteed.
While Decentralization helps in reducing illegal activities to a great extent, they still have me unable to close a few doors. With the rapid advancement in technology, we believe to curate methods that shall solve the problem stated above. Innovations like ModiCoin undoubtedly bring in a revolution that modifies the perspective of people. An exclusively high-tech environment prospers growth and comfort. The aim of the token currency has always been to build an ecosystem that persistently pursues higher aspects of furtherance.