Decentralization In Traditional Industries

Keeping Up With Decentralization In Traditional Industries

As more businesses and industries see the advantages of decentralized space and operations, an increase in finding better returns becomes the next frontier. 

Decentralized finance is one of the ways you can gain a significant financial advantage and return on your investment over traditional finance models. 

Before any discussion on decentralized finance, there needs to be a discussion on how the once-niche concept of decentralization became so widespread. 

Recent years have seen an acceleration of moving from traditional work models and centralized workspaces to more virtual and remote. There are various reasons for this remote work growing acceleration, but there are plenty of advantages to this new way of operating that seemed far-fetched not too long ago. 

Some of the advantages of remote work and a decentralized workplace environment include that employees report higher job satisfaction, more productivity by departments, more empowered employees through autonomy, and increased creative solutions to problems hampering the employees. 

Additionally, one significant benefit for employers relying more on remote work is the less need for large office spaces, saving a ton of capital on leasing obligations and other administrative costs. 

For long-range strategic planning, getting ahead of the accelerating trend toward decentralization will give you and your organization a strategic advantage over competitors. 

Why DId Remote Become So Popular

Some of the reasons that remote work became so popular were imposed on organizations by the pandemic, some were simply trying to remain competitive, but whatever the reason, the incentives to offering and promoting a virtual work environment are shown to outweigh any negatives. 

Even staunchly slow to adapt, institutions like finance are beginning to see the advantages of decentralizing their operations. 

Some of the reasons are that industry disruptors provide benefits for individual investors and borrowers, forcing banks and other traditional lenders to adapt to stay competitive. 

An example of these disruptors is the blockchain phenomenon known as decentralized financing, which empowers individual investors by providing peer-to-peer financial transactions and is much cheaper to participate with for both parties. 

With decentralized financing, otherwise known as DeFi, individuals have access to money almost instantaneously from peer-to-peer lending along the blockchain utilizing cryptocurrencies. 

What’s more, investors are able to go deeper into DeFi investing with a system called DeFi yield farming, which is an elaborate way of saying as an owner of a cryptocurrency, you can lend out your tokens at a pre-decided amount for the privilege that someone else has to use them. 

As an owner of a crypto, DeFi yield farming allows you to gain greater returns on your idle financial holdings, but only if those are in crypto.

This investment vehicle is a win-win for both parties. For the lender, you get an ROI much greater than parking your money in a CD or savings. 

At the same time, the borrower gains access to much more crypto, which can be necessary if the borrower is trying to leverage the market with greater crypto amounts. 

The borrower may try to leverage the market to act as a majority shareholder in a traditional stock-held company. 

This is similar to traditional investors using the number of stocks they own to force a corporation’s board to act responsively. A crypto investor borrowing through DeFi yield farming is putting pressure on the blockchain for a strategic advantage. 

The advantages of decentralized finance and trading include greater security, lowering fees placed on transactions, and giving more power to individual investors than traditional banks and financial entities. 

The Accelerating Reliance Of Decentralized Organization

As a society, we’ve seen an increase in both the interest and applications of remote and decentralized operations from healthcare to more staunchly traditional, like finance. 

These industries recognize the advantage and accessibility that decentralizing their operations creates for their staff and consumers. 

The advantages of becoming more flexible and decentralized begin with greater access and empowerment but also come with increased margins as overhead and fees become less of a priority and burden. 

Decreasing your overhead, providing better mobility for employees, and empowering peer-to-peer exchanges will continue to revolutionize the workplace and financial structures of those organizations that are adaptive in their long-range strategic thinking. 


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By Michael Caine

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