Understanding decentralization with Sparkso

Decentralization is at the heart of the cryptocurrency ecosystem today. And because it serves as the canonical principle of the Blockchain; it is one of the concepts most used by those of us active in this revolutionary technology. Thousands of hours of research and billions of dollars in hashrate have already been devoted to implementing decentralized systems; both to protect this technology, as well as to improve it.

However, it is a concept whose definition remains unclear to the general public. As with all new terms, it can be used erroneously to promote some marketing angle. Put simply, it can be used to bamboozle the uninitiated; to convince a reader of the writer’s superior knowledge or to gain some other advantage, rather than try and explain exactly what this technological development is and why it matters.

To understand what a decentralized system is, it would first be best to put the idea into context. Consider the illustration below, which gives an idea of ​​what decentralization is by contrasting it with centralization and distribution:

Illustration below

 From this diagram, it can be understood that a centralized system consists of a single entity that controls and decides the mode of operation of an entire network of other entities. An example is the operating system of a company, where power is centralized in the position of CEO who gives direction with regard to the internal and external activity of that company.

For its part, a distributed system implies that several autonomous entities ensure and perpetuate, in a coherent way, the overall functioning of a network, without being decision-making bodies. A distributed system is, for example, the Internet, which is materialized by the connection of many independent computer systems, in different geographical locations, to share information and resources on a continuous basis.

But what distinguishes decentralization from these other two types of systems? It is neither a system controlled by a single entity, nor a system whose mode of operation is based on the conjunction of several parties.

Put simply, a decentralized system is one that does not concentrate control and decision-making power in the hands of a single party, but in several entities that are presumed to be independent of each other. For example, a democratic government system is decentralized because all decisions are not taken solely by the head of state. The executive, legislative and judicial powers are indeed divided between different autonomous entities. Moreover, certain powers are decentralized geographically, by region or by State.

Take the case of Facebook. It is a system in which users do not own their data. Despite connecting to the platform via identifiers, their data is stored on Meta’s servers. This is an example of a centralized system.

The use of a decentralized blockchain for data management is characterised as ‘decentralized’ precisely because it confers, to the users of it, ownership of their own data. Although this data becomes accessible to a large number of parties operating the network (decentralization requires this), nevertheless the data remains encrypted so that only the party whose data it is can return it to an unencrypted form and then use it.

To summarize this point, one of the most important features of Blockchain is the way it can hold encrypted data, in full view of all other participants, whereby the existence of that data can’t be denied.

Getting more technical, the Blockchain uses a technology called ‘asymmetric cryptography’, based on public key and private key encryption, which allows a user to be the only one who can consult their data in its unencrypted form (via the private key). Asymmetric cryptography also allows this same user to be the only one who can produce signed data in his name (via the public key).

Now that you have briefly looked into the meaning of decentralization, let’s now consider what is meant by the ‘axes of decentralization’ within the context of Blockchain.

“To be the only one who can produce signed data in his name”

Vitalik Buterin, the founder of Ethereum, in his article ‘Meaning of Decentralization’ defines the following axes:

• Architectural (de)centralization: This questions the number of computers making up a system, and thus determines the number of machines that can be simultaneously out of service in this system without it becoming inaccessible.
• Political (de)centralization: This questions the number of individuals or organizations having control over the different machines constituting a system.

• Logical (de)centralization: This questions the interface and the structure of the data which a system contains and maintains; it is in particular a question of knowing if this structure consists of a single instance or if there are multiple instances.

Buterin proposes several aspects of decentralization, but why?

There are several reasons that explain the recent interest in this phenomenon of decentralization of data management systems, and payment in particular:

• Fault tolerance: A decentralized system is less likely to fail. Indeed, it is less likely that a set of independent systems fail simultaneously, compared to a system with a single component.

• Resistance to attacks: a decentralized system is less likely to be attacked, or to provide hackers with an entry point, because attacking multiple entities making up a system simultaneously (cf. 51% attack) requires more means, resources and expertise, when compared with the centralized case, where it suffices only to attack the central component to put the whole system into failure, or divert its function.

• Resistance to collusion: a decentralized system means that it is more difficult for its participants to agree and use their respective roles in this system. The risk of individual participants, within a truly decentralized system, clubbing together at the expense of other participants, is vanishingly small. On the other hand, users, citizens, customers or employees of a centralized system are far more at risk of an ill-intentioned authority.

In conclusion, a decentralized blockchain provides an information system which, in addition to being autonomous, is resistant to breakdowns and also displays an extremely limited potential for corruptibility. It is also a less expensive system to operate, since it doesn’t require a data server whose security and maintenance is essential to operation of a single authority system.

Now that you are armed with an understanding of the basic concepts of blockchain, you will better understand the significance of Sparkso having been built on the Polygon blockchain; Sparkso is truley a marketplace of decentralized services. At Sparkso, we identify viable and profitable B2B/B2C projects which exist outside the blockchain but would benefit from being implemented within a blockchain ecosystem. These projects are then revisited in order to introduce blockchain functionalities in their design (especially in terms of decentralization), and then to integrate them into the marketplace in the form of applications.

Currently, Sparkso already has two decentralized service projects to offer its users, respectively in the fields of education and business.

Sparkso in the education sector

Sparkso offers its customers the use of NFTs that can be consulted on a public blockchain as proof of a diploma or certification. This will allow them to promote their professional skills and expertise internationally, since NFTs are verifiably authentic i.e. unforgeable titles of ownership. In this specific case, they will certify that the diploma or certification has indeed been awarded by such and such an establishment to the benefit of such and such a candidate.

In addition, prior to the issuance of NFTs, the use of smart contracts will be systematically imposed throughout the control and examination processes, so as to ensure that a candidate indeed has the award as stated.

This service is also particularly usesful for universities and certification bodies, as training, exams and certificates are generated at a lower cost and are available on a public blockchain. They can thus interest a wider audience and consider partnerships in many directions.

Sparkso in the business sector

Sparkso is a platform for connecting companies, entrepreneurs, project leaders and other groups in the business world to help them find the right partner, in the right place and at the right time.

The originality of this platform lies in the fact that it is developed in the Blockchain, at the level of a decentralized ecosystem allowing users to interact in a secure way, not requiring intermediation and thereby significantly keeping the associated costs down. The Sparkso platform does not stop at providing a decentralized framework; it also provides turnkey tools to allow its users to automate their partnerships and formalize them in smart contracts. It is a question of guaranteeing the interests of all the stakeholders in a partnership, without the need to resort to a trusted third party; a truly democratized platform.