The decentralization framework example
Let's evaluate a money transfer system as an example of an application selected to be decentralized. The four questions discussed previously are used to evaluate the decentralization requirements of this application. The answers to these questions are as follows:
- Money transfer system
- Disintermediation
- Bitcoin
- Atomicity
The responses indicate that the money transfer system can be decentralized by removing the intermediary, implemented on the Bitcoin blockchain, and that a security guarantee will be provided via atomicity. Atomicity will ensure that transactions execute successfully in full or not execute at all. We have chosen Bitcoin blockchain because it is the longest established blockchain which has stood the test of time.
Similarly, this framework can be used for any other system that needs to be evaluated in terms of decentralization. The answers to these four simple questions help clarify what approach to take to decentralize the system.