5 Problems with centralized Data
There are benefits to most protocols within corporations, and some practices derive from traditional methods that complemented positively the technology available at the time. But as companies are evolved, so did their necessities, and some old practices that were great, now present new problems.
Centralizing Data was an incredible way of gathering the information needed for running their business, optimizing where to operate from, and analyzing that information at a greater speed. But some problems arose from malpractice and some new methods are now more attractive.
Of course, every business is different and as such, require different solutions and techniques to work as best as possible, here we are going to talk about 5 disadvantages regarding a centralized database.
1. It can become extra work.
The involvement required to maintain a centralized database implies the training and responsibility of specialized workers within the company. That may enroll specific teams to dedicate more time than needed on that end instead of collaborative work.
Having a decentralized system can help workflow become more efficient as multiple people contribute to the set goals.
2. There are lower levels of location-based adaptability.
Using a centralized database obliges a relation of dependability from local services such as they need to send information to a central station and wait for a response before action is taken. This means that without an option to control data locally, local costumers or the community might not get the service done as efficiently as they could have, creating a possible discontentment and friction in that sort of business relation.
3. It reduces the number of legitimate inputs.
Even though a centralized database is transparent internally, its information tallied by fewer sources of evidence and legitimate players. When the database is provided by cross-referencing a large number of sources, its more likely to be accurate within the parameters established. Its less dependent on sole players and reduces the common human error. The centralized data is an easier input with a higher risk of misinformation.
4. There is a risk of loss.
When there is a centralized database, everything is stored within that database. What happens to that information if the database should be lost for some reason?
With the loss of all that information, companies can collapse under scrutiny and the inability to operate their systems. It can create a long-term problem that overrules the viability of a company.
The loss of such data can come from system failure or malicious intent. Even with cloud backup systems in place and other protections available, there is always a risk of complete loss present when using a centralized database.
5. It may increase costs.
The costs of fixing an error or miscalculation are absurd compared to the costs of revising data before expediting information. When a centralized system is in place, there is a reliance on its accuracy, and due to the way process and connections are made today, the chain reaction of a mistake is costly to the companies wallet and its reliability.
In the case of data processing, centralized methods also cost more in terms of hardware capabilities and development.
In a prosperous business, looking for solutions is a common practice, and is a self-aware environment, its important to understand the limitations of each procedure. In our more globalized world, we propose that a decentralized way of organizing data and digital assets may offer the capabilities and ease that the former ways didn’t. Blockchain technology is the supporting force on this matter, with new utilities being discovered every day.
Learn more about Blockchain here, and evaluate how your business may benefit from it.
