Decentralized computing is the allocation of resources, both hardware and software, to each

individual workstation, or office location. In contrast, centralized computing exists when the majority of functions
are carried out, or obtained from a remote centralized location. Decentralized computing is a trend in modern
day business environments. This is the opposite of centralized computing, which was prevalent during the early
days of computers. A decentralized computer system has many benefits over a conventional
centralized network. Desktop computers have advanced so rapidly, that their potential performance far exceeds
the requirements of most business applications. This results in most desktop computers remaining idle (in
relation to their full potential). A decentralized system can utilize the potential of these systems to maximize
efficiency. However, it is debatable whether these networks increase overall effectiveness.
All computers have to be updated individually with new software, unlike a centralised computer system.
Decentralised systems still enable file sharing and all computers can share peripherals such
as printers and scanners as well as modems, allowing all the computers in the network to connect to
the internet.
A collection of decentralized computers systems are components of a larger computer network, held together
by local stations of equal importance and capability. These systems are capable of running independently of
each other.
Based on a grid model a peer-to-peer system, or P2P system, is a collection of applications run on several
local computers, which connect remotely to each other to complete a function or a task. There is no
main operating system to which satellite systems are subordinate. This approach to software development (and
distribution) affords developers great savings, as they dont have to create a central control point. An example
application is LAN messaging which allows users to communicate without a central server.

File sharing applications[edit]

One of the most interesting debates over decentralized computing involves Napster, a music file
sharing application, which granted users access to an enormous database of files. Record companies brought
legal action against Napster, blaming the system for lost record sales. Napster was found in violation
of copyright laws by distributing pirated software, and was shut down

All of the facility build out I am talking about is powering centralized cloud applications. And in
spite of the Internet being a truly decentralized network, surprisingly little energy or dollars are
being spent on enabling decentralized cloud applications.

Most applications we see on the Internet today are hosted centrally in one or more data centers
and take very little advantage of the capabilities on the edge. Even some previously

decentralized models, like email (SMTP), which was designed to be a decentralized application,
have evolved into a centralized model, with mega email providers such as Hotmail, Yahoo and
Gmail all of which are built on a centralized data center infrastructure. Business email is still
fairly decentralized, although we do see a definite trend towards centralization there as well.

Interestingly, the same can be said about the Web (HTTP) itself. The word Web was intended
to define a true mesh across the Internet. It is a mesh but a highly lopsided one, with the
majority of Web Servers hosted across a few data centers.

Skype is one of the few decentralized cloud applications we see in widespread use. While
some users are not aware of this, Skype is a true peer-to-peer network, which routes
communications through the bandwidth of network users. In doing so, Skype has built the
largest voice and video communications system without building much centralized
infrastructure.
The project will draft a protocol for decentralized cloud computing which is cheap and viable for both consumers and enterprises. A
key component is to determine a way in which the integrity of the data can be guaranteed. The protocol will enable users to pay the
network to perform their computations. These payments will then incentivize nodes in the network to provide computation power.
Providing payments in a trustless manner, without a third party, has previously been a difficult problem because of the inherent
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nature of the spread of information on the internet. New technologies like block chains have provided an efficient way to solve this
problem.