We live in a technology era, where technology builds our society, and society also builds technology. As such, most people are accepting of a decentralized currency because the world has been craving a decentralized economy. This is a good indication that crypto is here to stay. Note that while a decentralized economy lets everyone have access to their wallet, it is very important to be familiar with crypto recovery services in case you lose access to your wallet. So, what is it about the decentralized market that makes society crave it?
Removing the middleman
One thing about the centralized economy is that there will always be a middle man. Fiat currencies are processed by financial institutions, a body that regulates how the currency is handled and managed. And because financial institutions are not running a charity, as they also need to pay salary, and fund other maintenance, users will have to pay transaction fees which are often high. Additionally, since the financial institution is a body, whatever policy they want to implement will be implemented. All these reasons contribute to why society is welcoming of a decentralized economy because it removes the middle man, hence all these cons.
Another reason people are welcoming of a decentralized market is that it allows them to securely trade. For example, there is this technology known as BitTorrent, which allows businesses to make use of a smart contracting system, which ensures every party is up to date with the transaction details. What this software does is that it puts a digital signature on a sale transaction. As such, when someone wants to buy the item, it will also put another digital signature on it. With this, there will be an undeniable record that the trade happened.
Eliminate the extras
A centralized market is full of so many processes that can be frustrating most times. This is particularly true when you want to operate in an open market. But with a decentralized market, you’d own users’ services and infrastructure your business needs to thrive. Although there are not plenty of decentralized markets yet, decentralized trading is on the rise. And if you want to perform a decentralized trade all you need basically is to use blockchain directly. IF you own a product listing, a decentralized market could help you place them in a blockchain so that buyers can check the list and buy it directly from there.
People can engage directly in a decentralized market
Another reason decentralized markets have been able to thieve these past decades is that it allows people to engage directly with one another. With no middle man in place, trades can go smoothly as well as cheaper. Moreover, communication will be at its peak since every party wouldn’t have to rely on a centralized controlled service. And with people engaging directly, enhances trust and transparency during transactions.
Threats are easier to see
While in every market there are always threats, is it easier to mitigate them in a centralized market or a decentralized market? In a centralized market, threats are easy to measure, define and understand. However, everyone in that organization must meet a particular standard which can be cumbersome, clunky, and sometimes unnecessary. But in a decentralized market, trades are censored for every product and service that are deemed objectionable or anything political that might threaten your business. Take, for example, Amazon, a centralized market that prohibited the sales of the video-streaming device on their platform to promote the sales of their own devices.
Higher cost and profiling
Another thing worth noting is the cost it takes to run a centralized market. Most online commerce stores are too centralized, and even though their feeds vary, they pay a considerably high amount of fee. These fees on a product could be as high as 10%. While sellers may incur this cost at first, they then jack up the price of their product, which shifts the cost to buyers. Online commerce stores also look into their customer behavior to collect data about their buying and selling habits. They can also force shoppers and buyers to comply with the laws of their legal jurisdiction. All these reasons contribute to why people are more welcoming of a decentralized market.
To sum things up, crypto is the future of this century. Having a crypto wallet comes with so many benefits. And if you should ever lose access to your account, crypto recovery services got your back. So don’t limit yourself, enjoy the full benefits of a decentralized market.