The global blockchain market was valued at $11.14 billion in 2022, with projections suggesting it could surge to $469.49 billion by 2030. Yet, beneath these staggering numbers lies a fundamental question that continues to divide tech leaders: Do we actually need decentralization on such a widespread scale?

Traditional centralized tech giants have recently faced unprecedented scrutiny. Meta’s record-breaking $1.3 billion GDPR fine in 2023, alongside Amazon and Google’s antitrust battles, has thrust the debate over centralized power into mainstream consciousness.

Amidst this tension, decentralized alternatives are expanding across finance, social media, and cloud storage. But is this wholesale rush toward decentralization justified? Or are we, as an industry, seeking distributed solutions for problems that don’t necessarily require them?

To answer these questions, we spoke to seven leaders who’ve built and scaled solutions in both Web2 and Web3 paradigms. And their responses offer valuable perspectives on where decentralization truly matters and where it might be more hype than necessity.

Here’s what they had to say:

1. Vladimir Oane, Co-Founder at Deepstash

Oane believes that decentralization shouldn’t exist solely for ideological reasons, as it largely stems from a battle over free speech. Concerns about centralized power are well-founded, he says, citing examples like the U.S.’s post-9/11 surveillance, the Twitter Files, and rising AI regulations in the EU.

However, Oane is skeptical about the public’s willingness to adopt decentralized solutions purely to combat censorship, especially within a democratic context where consumer interest in these issues is minimal.

Historically, even systems built to limit centralized power often shift toward authoritarian structures over time—ancient Rome being a prime example. Oane fears that the U.S. could be following a similar trajectory, suggesting that if the First Amendment were up for a popular vote today, it might not pass.

For decentralization to succeed, Oane argues it must focus on delivering a superior user experience. He draws a parallel with Linux, which gained widespread adoption not due to ideology but because of its technical strengths and innovative business models.

Similarly, Web3 projects should prioritize applications that offer tangible benefits to everyday users. Current projects are heavily focused on building infrastructure, but the next phase, he emphasizes, must bring intuitive and valuable applications that make decentralization’s advantages clear to users. With this approach, he predicts widespread adoption of decentralized technology will be a matter of time.

2. Raj Kapoor, Founder of India Blockchain Alliance

Kapoor appreciates the appeal of decentralization—freedom, control, and a challenge to established power. However, he questions whether all industries truly need decentralization. In areas where governments exert control, decentralization helps maintain an open internet, independent social media, and resilient financial systems. While the concept of peer-to-peer services is attractive, removing intermediaries can sometimes lead to disarray.

Kapoor also notes that decentralization has practical downsides too. Decentralized networks often suffer from slow performance, lack accountability, and can become gridlocked without clear leadership. Scalability remains a significant hurdle; as these systems expand, so do their issues, frequently creating bottlenecks.

Nonetheless, decentralization offers undeniable benefits in specific fields. In finance, it grants people access to services without the need for traditional banking, promoting unprecedented financial freedom. In digital identity, decentralized solutions empower users to control their data, enhancing privacy and reducing data breach risks.

Kapoor concludes that full decentralization isn’t always the ideal solution. A balanced approach provides the optimal framework, delivering the strengths of both models.

3. Mehul Fanawala, Co-Founder at The Clueless Company

Fanawala shared his perspective on decentralization, grounded in over 16 years of experience as a RevOps Consultant in B2B SaaS. He sees decentralization as both an innovative trend and a practical tool, but not a universal solution. While decentralization is valuable for transparency and reducing single points of failure, not every system benefits from it.

In B2B SaaS, centralized systems often provide the control, security, and efficiency needed for effective scaling. However, decentralization holds unique advantages in areas where trust and transparency are crucial, such as financial systems, supply chains, and data privacy. For industries requiring data integrity and user autonomy, decentralization can offer benefits that centralized systems lack.

For most operational functions in B2B SaaS, though, centralization remains more practical. Ultimately, Fanawala views decentralization as a tool that should be applied thoughtfully, depending on the context and the specific needs of a given system or industry.

4. Kalyanjit Hatibaruah, MD & CEO at Flugelsoft

Hatibaruah observes that decentralization is transforming the tech landscape as centralized services increasingly give way to decentralized alternatives. But he questions whether this shift is essential or merely a trend, emphasizing the need to assess its benefits and true value.

Decentralization empowers individuals and local entities, enhancing responsiveness and enabling agile decision-making. It also strengthens security by removing single points of failure, improving regulatory compliance and resilience against cyber threats.

Additionally, decentralized structures foster innovation by encouraging diverse contributions free from central control—blockchain, for instance, has enabled secure peer-to-peer transactions.

Certain areas show significant promise for decentralization: financial services benefit from DeFi platforms offering faster, cost-effective solutions; supply chains gain transparency and trust through decentralized networks; data management sees improved security, compliance, and access; and governance frameworks promote more democratic decision-making.

However, decentralization isn’t a universal solution. Decentralization, he concludes, is most effective in contexts valuing flexibility and collaboration, warranting case-by-case evaluation.

5. Amanjot Malhotra, Head of Growth, Tezos India

Malhotra views the evolution toward decentralization as a transformative shift in digital infrastructure and user empowerment. While not all services require decentralization, it provides significant advantages in areas such as financial services and digital identity management.

In India, decentralized systems enhance financial inclusion by reducing reliance on intermediaries, enabling direct and efficient transactions for millions, and advancing user autonomy through data ownership.

Malhotra emphasizes the need for a pragmatic approach to decentralization, advocating for its application where it can genuinely improve existing systems, such as supply chain management, educational credentials, and government services.

He stresses the importance of a balanced perspective, suggesting that while decentralization reshapes digital interactions, it must be implemented thoughtfully to enhance user experiences and solve real problems.

6. Sachin Joshi, Co-Founder & CTO at Alt DRX

The true spirit of decentralization is to provide inclusivity for participants in the most transparent way possible. That said, decentralization isn’t necessary for everything; it’s most effective in areas where we aim to distribute economic value to a broad base of people while maintaining clear accountability.

Prime use cases include financial services, identity management, data ownership, and supply chain transparency.

Decentralization isn’t just a passing trend, but it also isn’t a universal solution. I firmly believe enterprises should lead the way in adopting decentralized solutions. By doing so, they can instill the confidence needed for retail users to embrace these technologies across various applications.

7. Dinesh KR, Senior Manager at WadzChain

Dinesh emphasizes the growing significance of decentralization in tech, where decentralized services increasingly challenge centralized ones. He believes decentralization empowers users by giving them control over their data and digital assets, enhancing transparency and security through cryptography, and reducing reliance on single entities.

The potential of decentralization extends beyond payments; it can transform industries like supply chain management, where decentralized ledgers track goods for greater transparency and efficiency. In data sharing, secure blockchain networks enable safe collaboration between parties, while decentralization can create tamper-proof voting systems that empower citizens and enhance democracy.

However, challenges like scalability, user experience, and regulatory frameworks must be tackled. By promoting collaboration among traditional institutions, developers, and users, we can address these issues and fully realize decentralization’s potential.


Harshajit (Harsh) Sarmah is the Founder & Editor-in-Chief of Crypto India Magazine (CIM). This article was originally published in CIM.

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