Blockchain is the technology by which Bitcoin and all other cryptocurrencies work. To put it bluntly, it is one financial ledger that records infinitely reliably who has how much money and who gave whom how much money in the past.
After the success of bitcoin, people started thinking about what blockchain technology could be used for. They quickly realized that this was much broader than money. For me Decentralizated Blockchain will change the whole world.
Everyone probably heard about the decentralization of blockchain , ICO and various cryptocurrencies, but not everyone is able to realize the advantages of such a system and the advisability of using decentralized control in electronic systems. Indeed, in some cases, decentralization is a positive sign, while in others it is destructive.
Also, may I add too that this post is a response to @theycallmedan post on 👇
What Does Decentralization Mean To Me? Initiative.
Blockchain decentralization?
Decentralization is the process of distributing power, finance or effort without the intervention of a global governing body. Decentralized management systems are far from new, they are present in many companies. However, in the management of finance, such a system became possible only after the creation of the blockchain chain.
In order to understand what decentralization means in the blockchain, one should turn to the system functioning algorithm. In blockchain technology, decentralization of control is carried out due to the fact that the system does not have a local server, and all miners and participants in the transaction chain are equal.
The operations on the blockchain are not monitored by developers, and transaction confirmation is carried out by network users. The technology involves the distribution of computing power and data around the globe, while information is duplicated many times to prevent loss, and DDOS attacks on such a system have zero or minimal effect.
Why decentralization in cryptocurrency?
The decentralized system provides a high level of transaction security and funds storage. Since information about the entire transaction history is stored by each of the users, it is impossible to deceive or destroy such a system. Each transaction is confirmed by several independent nodes (nodes), which makes it impossible to replace data or bribe reviewers.
Ripple decentralized blockchain
Unlike the local systems that are used in banking structures, the exchange of funds through a decentralized system takes much less time and will allow you to make a huge number of transactions in seconds. Perhaps this is due to the fact that, unlike banking structures, where the transaction speed directly depends on the workload and capacity of the local server, in the blockchain, computing power is distributed throughout the globe, and a huge number of participants in the chain provide high power and, accordingly, speed.
An important advantage of a decentralized system of electronic currencies is the lack of external regulation. For example, if the actions of a server are considered unlawful by law enforcement agencies, they have the power to confiscate the equipment and development of the owner.
And with decentralized cryptocurrencies, it will not be possible to seize either technology or power, since they belong to a huge number of people, and the technology is in the public domain and if it is preserved by at least one participant in the chain, it can be easily installed by everyone.
The independence of cryptocurrencies from the authorities and regulatory authorities also excludes political manipulation of the value of crypto signs. Therefore, the rate of cryptocurrencies is an honest reflection of the supply and demand for them.
I feel, with the complication of the mining process, which began to require huge capacities, the decentralization of cryptocurrencies has become a fairly conventional concept, since large data centers are able to concentrate a huge number of communication nodes and thereby control the system.
That's it for now….
This topic is huge, as you can see. There are still a bunch of things left to tell, but in short, Decentralized blockchain and cryptocurrency have a great role in our future life.
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