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Decentralization: The historical past of profitable firms will change

The future is decentralized, where everyone works together to drive business and everyone has a voice.

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July
29, 2020

Read 3 min

The opinions expressed by the entrepreneur's contributors are their own.

Most of the success stories of companies in the 21st century tell the story of an entrepreneur and his team. The story usually looks like this: the founder saw an opportunity, gathered a small team of people, ran the company in an office, and continued to work until the company became a successful company. However, in our day and age things are changing due to the power of the internet and decentralization is becoming increasingly popular.

What is decentralization?

It's easy. Everyone is involved in decentralized companies – from founders to users. These companies no longer worship a person as a metaphorical God who makes all decisions. In decentralized companies, everyone works together to drive business and everyone has a voice.

Related topics: 3 ways to decentralize management and increase productivity

Thanks to the power of the Internet and various connection tools such as Slack, Zoom and Asana that enable instant connection, those who work in decentralized companies no longer have to live or even see each other in the same geographical area. The decentralization of a company has advantages and disadvantages.

In 2020, the economy is all about sharing. We share our cars and houses to gain more freedom and make money. With the rise of the digital nomad, decentralization is likely to become increasingly important.

Digital nomads and decentralization

Digital nomads are professionals who decide to forego the traditional understanding of nine to five jobs, pack their laptops and move to a beach in Thailand, for example. The trend is growing among millennials and Gen Z, who happen to be the most technologically advanced generations.

Related: 5 trends towards decentralization observed this year

With decentralization, successful entrepreneurs no longer have to worry about their age. While talent can be undisputed, founders are often at a disadvantage if they are too young for their own business. With decentralization, however, age no longer plays a role, since the founder is no longer in the spotlight. Instead, the company is a large joint venture.

The inherent risks

In 2017, the decentralized company Equifax suffered a serious security breach. With the company having huge amounts of user data stored online, hackers took advantage and effectively stole personal data from over 143 million Americans. While fraud is always a problem in decentralized companies, those involved are encouraged to be transparent, as a few bad apples can bring the whole business to a standstill and this is against everyone's efforts.

Decentralization is currently a successful business model that will probably only become larger in the coming years. Even Mark Zuckerberg plans to decentralize some aspects of Facebook, which shows that the trend is continuing.

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