Decentralization indicates the degree of diversification in ownership, influence, and value in the blockchain. A large segment of the blockchain community views decentralization as a quantitative metric that shows how many block producers exist in a given network. On the other hand, some developers have a more qualitatively approach, focusing on the hardware aspect, in the sense that affordable computer systems can participate as a node in the network. Decentralization is not a fixed binary attribute. It is measured in degrees of decentralization. A common misconception is that blockchain networks can simply be labeled decentralized or not.

Scalability is an important factor that determines the capacity of a network (the number of users a network can support), the number of transactions that a network can process, how fast it can process them, and how much it costs users to have those transactions verified. As such, distribution and scalability of databases becomes an end goal for companies that seek to streamline operations and enhance productivity.

Centralized platforms and organizations typically don’t function on a blockchain architecture. These types of organizations are controlled by a small group of individuals, the management team, board of directors, who control the majority of ownership in the company and are the decision-makers. This is not always the case, as a company can employ a private blockchain to streamline operations and increase productivity. In this scenario, decentralization is kept at a minimum, because it makes sense from a business perspective to protect trade secrets and confidential data. A company may extend view/write privileges to certain partners and clients when the need arises, but overall it is more centralized than public blockchains such as Bitcoin and Ethereum.

Due to its agnostic take on both blockchain engine and database system, Modex BCDB facilitates the distribution and scalability of databases that weren’t designed with replication or distribution in mind. This way, companies can tap into the benefits of a distributed and scalable database without needing to completely overhaul their existing system.