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Reasons Decentralisation Is a Revolutionary Idea

Nov 06, 2017 Posted /  3354 Views

Reasons Decentralisation Is a Revolutionary Idea

The process of distributing or dispersing power from the hands of the central authority, the government or any federal reserve is termed as decentralisation. This ground-breaking concept has picked up the pace, ever since the unveiling of Bitcoin in the year 2009. Bitcoin is the first cryptocurrency, based on the model of decentralisation, as the government hold no authority for printing and demonstrating this virtual currency. So, in a nutshell, decentralisation allows investors and people to make investments for their future with utter freedom.

History of Decentralisation

The history of decentralisation takes us back to the 17th age when rulers of different dynasties were supporting it. However, the biggest reference we can get is the East India Company, which traded in India for many decades, was a well-functioning decentralised organisation. To boil down, this company were having factories in different parts of the globe, and at that time telegraph telex and telephone didn’t exist, so senior people working there made an on-spot decision by themselves.


Decentralisation in the 19th century excelled, with Morgan family operated their banks independent from any central authority throughout the London and the New York. The various member of the eminent Rothschild family ran their businesses across the Europe in a decentralised manner.


But, with the invention of the telex and the telephone by the Alexander Graham Bell, the model of decentralisation was sinking, with the headquarters getting back the control of their global operations. So, at its core, the philosophy of centralisation was dominant during the 20th century.


Though, in the 20th century, there are several notable exceptions like the DuPont, an illustrious American chemicals organisation, which embraced the model of decentralisation with great interest in the era of 1920s. When the administrative authority of the company proposed a multidivisional model to defy the problem of diversification. Similarly, the founder of General Motors, Alfred Solan, segregated the company into divisions, and each division worked as a separate company within the organisation. The founder, many years back said, General Motors decentralised in administration and converged in policy. Many reports suggested this move of the General Motors helped to get back into the global marketplace after Ford gained enormous grounds worldwide.

Decentralisation in India

The history of decentralisation in India take us back to the time when the Panchayat Raj flourished in the rural areas of the company, but with the unveiling of the Constitution, they didn’t get much power. So, the concept of decentralisation somewhat halted. In the recent years, however, with the dawn of cryptocurrency, this idea has got a new life.

Perks of Decentralisation

Relieving the Burden

Decentralisation is a great idea to relieve the senior authority of any organisation from the burden of managing the day-to-day operations of the different segments of the company. This will allow the company’s administration to focus on the better picture meeting with clients, planning expansion, etc. Rather than, wasting their time and energy on unnecessary stuff.

Empowering the Employees

Employees work together to be the heart of any organisation, and it works great, the health of the company remains good. Thereby, by following the model of decentralisation, you can empower your workforce to take necessary steps. This will instil a sense of confidence and faith so that they work with better energies to manage projects of any complexities. The heart of the matter is, you are bound to get better, innovative ideas by virtue of their years of practice and skill set.

Preparing for Emergencies

There is often a situation when the senior administrative department of the company has on focus on other critical aspects or when the CEO of the company is away from work owing to some illness or family problems. With a decentralised model in place, the company can work seamlessly even in his or her absence, as they have give some trusted flocks the power to take necessary decision. Therefore, the organisation will run efficiently, since it used to operate independently without any interference from managers and the CEO.

More Efficient Decision-Making

Compared to a decentralised organisation, a centralised company can make decisions more efficiently and instantly, no need of approval from the higher authority. The manager of the department can take necessary measures for his or her team, rather than writing it to the seniors to follow the application like a chain, and take months to find a conclusion.

Ease of Expansion

Decentralisation power any organisation to spread its wings with great ease, it facilities the process of expansion. For instance, if one particular division of the company wants to start its operation in another geographical location, then, it can do it efficiently since it is operating as an independent entity. In simple words, that particular division can react more easily to the expectations of the area, like making products as per the taste of the locals.

At the End of It All

From the above highlights, you come to know about the advantages of decentralisation and a brief about the history of this revolutionary idea.


Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: cryptocurrency decentralisation history of decentralisation decentralised organisation

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