Two methods can be used to achieve decentralization: disintermediation and competition (Contest-driven decentralization). These methods will be discussed in detail in the sections that follow.
Methods of decentralization
Disintermediation
The concept of disintermediation can be explained with the aid of an example. Imagine that you want to send money to a friend in another country. You go to a bank who, for a fee, will transfer your money to the bank in that country. In this case, the bank maintains a central database that is updated, confirming that you have sent the money. With blockchain technology, it is possible to send this money directly to your friend without the need for a bank. All you need is the address of your...
