However, the internet, cloud computing, and even private data centers operated by individual businesses are still highly centralized. They rely on just a handful of large data centers to function. Edge computing networks and the IoT (Internet of Things) extend the reach of the cloud and have begun to decentralize IT. Edge networking aims to build more data centers that are localized closer to the user. The networks can be interconnected geographically, and data and services are often distributed among multiple data centers.
Blockchain takes this concept even further. Individual computers, even those not owned by a single company, can participate in the computing and management process. Data storage is fully distributed away from a data center since the blockchain itself contains all of this information and is distributed to each miner.
Financial incentives are also decentralized. Some cryptocurrencies act as a token that allow owners to stake their holdings and share the revenue generated from the management of the blockchain. The revenue is generated by charging transaction fees (known as gas fees on the Ethereum network) to people using the blockchain network to power their digital services.