The money that we use today is in a centralized system. A centralized currency is the one that is controlled by a central authority. A central authority that can change rules as per their convenience and as they see fit. They could print money as per their need and can have an individual’s account frozen if they wish. The financial and banking systems which issue the currencies have been there for a long, long time and slowly the problems of human nature crept in greed and irresponsibility. There is always a chance of someone creating a counterfeit when it comes to centralized currency. Centralized money can always be manipulated in a way to control the ones in power, to the extent of locking an account or taking away the money if an individual does not behave as per the authority in command of the currency. The centralized currency would work seamlessly if it is managed by people who have good intentions and a clean conscience.
The above makes us realize that there is a need for a decentralized currency. A currency that is controlled by people and nobody can access someone else’s currency without the holder’s permission. Bitcoin was the first of many blockchain applications to create decentralized currency. It made the idea that transactions could be processed with no need of a middle-party possible. And, it exponentially grew the security, speed, transparency, and permanency of information transfer a possibility. A user of Bitcoin is never forced to use a centralized service. Bitcoin allows its users to withdraw into the neutral field of decentralized banking at any time. The way to judge the legitimacy of centralization is always the ability of users to opt out which is provided by Bitcoin. This is the difference that the world will possibly soon embrace. It will realize the need to turn towards and decentralized currency systems.