Recently we received some questions on why Katalyst is decentralised.
We are glad you asked! So today’s post is on the three reasons why the Katalyst protocol is decentralised.
Reason #1: Katalyst Protocol Exists to Publicly Identify and Reward Favourable Social Behaviour
“So Why Must Katalyst Have The Information In Public, Ah?”
The premise here is that most human beings desire glory and fear shame.
The public element that a decentralised system provides therefore accelerates the frequency of certain positive behaviours and minimises negative social behaviours (as defined by the B2B users of Katalyst).
Here, it is interesting to note the very public and social aspect to the traits of “glory” and “shame”.
- For the positive social aspects of “glory” to manifest, a group of people has to agree that said activity done by a particular person is “glorious”; and
- Likewise, for the negative social aspects associated with “shame” to manifest, a group of people has to agree that said activity done by a particular person is “shameful”.
This is precisely why Katalyst Protocol is decentralised. We posit that a public recording of such social behaviour will help further encourage users to be loyal to Katalyst incubated companies.
Business users of our Katalyst Protocol pre-define the social behaviours they want to record, associated with their marketing and sales KPIs.
The “Glory” and “Shame” factors are therefore elaborated as follow–
- The “Glory” Factor: With public data on the behaviour of supporters, companies can better identify and publicly reward such users, which adds on to the supporters’ glory as the biggest brand ambassadors; and
- The “Shame” Factor”: With public data on why people dislike using a particular product or service, companies can then seek to “avoid shame” by speeding up the time at corrective actions. This logically would result in better customer service and product support, since negative feedback is publicly recorded and available for access via our Katalyst blockchain.
This is alternatively known as Katalyst’s “Proof of Loyalty” (PoL) concept.
PoL is defined as “the direct economic activities that contribute to a given blockchain platform”. Proof of loyalty helps make ecosystems sustainable and provides immense value for every stakeholder.
Katalyst is the world’s first blockchain that records and rewards all economic activities. And we’re really proud of that!
Reason #2: Decentralisation is the Spirit of Open Source!
Open source is a term used to:
“Denote software for which the original source code is made freely available and may be redistributed and modified.”
One of the function of our Katalyst Platform is incubation.
That is, Katalyst helps businesses accelerate their growth. A traditional business may take five years to realise its enterprise value while a Katalyst incubated company only requires perhaps two months.
As information is logged publicly and in a transparent manner, businesses can access the entire ecosystem’s data on top of their own. In doing so, a collaborative (as opposed to competitive) environment is created because data access is available to all who request for it.
Imagine more and more businesses seeing each other as “partners” instead of “competitors”! There will then be less wastage of resources especially via “deadweight loss”, an economic term that results due to negative externalities, negative economy of scales or from unnecessary competition.
Moreover, businesses can benefit from open source via a decentralised blockchain by having a solid grounding on what works in the ecosystem and what doesn’t. They can then spend their time and effort on verifiable data instead of “mere talk”.
From the users’ perspective, this would cut through many unsubstantiated promises that are sometimes made by business owners. Users can then hold businesses accountable because all marketing, promotional and possibly sales activities are recorded publicly.
Reason #3: Decentralisation is the Spirit of Blockchain!
The spirit of blockchain lies in its transparency and immutability.
Because of this transparency via decentralisation, we grant the clients of Katalyst B2B users a peace of mind.
Users can develop more trust in the businesses that use Katalyst as a result of this decentralisation and transparency. Businesses as such would be viewed as having nothing to hide and have no secrecy.
Because of the decentralised element, users can also be assured of the trustworthiness of data, as falsified/doctored data is easily uncovered.
Customers can finally trust systems more because the decentralisation element in blockchain can eliminate middlemen.
We hope you have enjoyed this article today. We also love to hear from you! Feel free to share this post or leave a comment 🙂
We would like to also thank Sham for his contribution towards this article! 🙂