About the importance of decentralization đ¤Źâ As you know, one of the key features of cryptocurrencies is decentralization. What is it and why is it valued so highly?
âĄď¸ Blockchain is called decentralized because it has no central server and therefore no main manager in the form of any organization. What's wrong with central servers? Well, they are owned by third parties, have access to your personal data and can leak it or just delete it at any time.The need for a central server is eliminated because each computer on the network keeps a copy of all the data and changes to the blockchain.âď¸ They are all connected like a big cobweb. If one node (that's the name of the network nodes, i.e. each computer) shuts down, the others continue to work as if nothing had happened.
âŞď¸ Even if the power goes out all over the planet - a copy of the blockchain will continue to be stored on all computers in the network with the latest update. Speaking of updates, any change (e.g. adding a new transaction) must be confirmed by the miners before it enters the blockchain.
âĄď¸ Blockchain is a secure technology that cannot be hacked, precisely because it is decentralized. For example, to fake the amount of a transfer, you need to do this on ALL nodes of the network at once.
And the Bitcoin blockchain has almost 17260 of them.
That's a lot of power, isn't it? đ
â What do you think would be more beneficial for the future development of the world economy?
- Decentralization đĽ
- Centralizationđ¤
