I am invested in decentralized investment called Steem through my use of various computer software applications, which run on the Steem blockchain, like Steemit, Partiko, Actfit, Appics and Splinterlands. I am invested in this coin because of the fabulous ROI which has ranged between 16 to 55% at various times in the last almost two years and also because the control I have over my investment or money because it is decentralized. So today let’s talk about how centralization and decentralization can affect your investment.
In life most of our financial institutions are very centralized, meaning that a small number of people like the bank owners, bank president, branch managers and a few others control the deposits or money of the thousands of people who have accounts at those banks. These centralized institutions tell you how much you deposited, when you can withdrawal your money, how much money you can withdrawal and how often. If you suddenly show up and want to withdrawal all your money, they can make you wait several hours or days to get it and they can charge you a fee. They also tell you who you can send money to and how much, how often and charge you for that transaction. When you invest with centralized institutions they control you the same way. A centralized system has one ledger and possibly a few copies, which is vulnerable to corrections, alteration and false entry. They have rules and you have no say. They have governing or controlling bodies appointed by the bank owners and you have no say.
So to recap, centralized banks and institutions
A few people control the money of many people.
The record of account is kept by a few people and not available for review, except in special circumstances by a company hired by the few.
The few make all the rules and the many have no say.
A decentralized system is different. A decentralized system is characterized by no few as above controlling your money. The investors control their money and withdrawal it at will, and send it to people at will. The record of account is kept in multiple places simultaneously and they all have to agree on its accuracy. This act of keeping the record of accounts or ledger in many places is called distribution or spread out, and is referred to as a distributed ledger. Because transactions are entered by the computer in accordance with its software program and each is verified by multiple other computers at the same time you don’t have to trust a few people keeping one copy of the record of accounts and transactions, otherwise known as a ledger, no humans are involved, so you don’t have to trust a human to enter transactions correctly, so it’s called trust less. And changes to the record of accounts and transactions are not allowed except by vote of everyone keeping the books. Everyone can see all the transactions. The rules are established at the beginning by the agreement of the investors and they can make rule changes by voting upon them and agreeing to them also, thus agreement is called consensus.
So to recap, a decentralized organization or investment,
Their are no few people who control the money of the many.. The record of account is kept in many places and is not secret, but available to all to see. The transactions are entered by the computer software as they occur and no changes can be made to the record without a vote by and agreement of the investors. The rules are set by the software developers, but they can be changed by vote of the investors. The investors control their money and withdrawal it at will, and send it to people at will.
Which one would you like to invest your money in?
✍️ written by Shortsegments
Read other articles by me on the Steemit Social Media Platform, where writers get paid for their content by the community by upvotes worth the cryptocurrency, called Steem.
Read my Steemleo investment Blog
Please follow my Twitter Feed Here
Shortsegments is a blogger or writer on the Steemit platform, where writers, photographers and video bloggers, along with other content producers get paid for posting their content. Steemit is a decentralized social media platform on a blockchain called Steem. A very important difference between Steemit and centralized platforms like Facebook, Instagram or YouTube, is that there isn’t a central authority or owner to take your account away from you and your account can’t be deleted. You are the owner of your account. Find out more at this Link
Steem Onboarding helps you apply for an account and is a series of videos which explains how Steemit works. You don’t need to understand everything about the blockchain to post content and our Onboarding help is available in six different languages.
😅😊