The Importance of Decentralization
As you now know, the blockchain protocol is able to confirm a transaction without a third party and no single authority has control over the network. This is why it is decentralized. But why is this important?
Firstly, decentralization is very secure. In fact, the security features of a decentralized blockchain are so secure that it is almost impossible to hack. Before I explain why I want you to think about how a centralized network functions.
Let’s take a look at an organization like Yahoo. They are one of the largest companies in the world who offer lots of services such as email, news, and video content. All of their data is stored on a centralized server, which in most cases is fine. But what happens if the centralized server fails?
This is exactly what happened in 2016 when a group of hackers managed to gain control of the Yahoo servers, which then allowed them to access more than 3 billion private email accounts.
This isn’t a one-time incident either. Whether its social media, banks, internet service providers or the U.S. election, centralized servers are hacked all the time. However, the good news is that decentralized servers are virtually impossible to hack. Here’s why!
Do you remember how my “What is Blockchain” guide explained that to confirm a transaction, lots and lots of people contribute their computational power? These “Nodes” not only help verify a movement of funds, but they also keep the network secure. This is because more than half of the nodes on the entire network would need to be hacked at the same time for something bad to happen!
Even if this was possible (which it isn’t, really), the hacker would only be able to make changes to the blockchain for 1 block, which in the case of Bitcoin, would be about 10 minutes!
Decentralization isn’t only important for security, but for equality, too. Everyone who engages with the blockchain has the ability to contribute to the system. Furthermore, as each and every transaction is available to view on the public ledger, it makes the network transparent. No corruption, no fraud, and no inequality!
Now that you know why decentralization is important, the next part of my What is Blockchain tutorial is going to look at how anonymous the blockchain is!
How Anonymous is the Blockchain?
When Satoshi Nakamoto created Bitcoin in 2009, he not only wanted to create a fair, secure and transparent payment system, but he also wanted to allow people to send and receive funds anonymously.
Think about how you spend your money in everyday life. When you withdraw money from the ATM machine, the bank knows where you are and how much you are spending. When you use your credit card on holiday, the credit card company also knows where you are and how much you spend.
When you receive your monthly salary, the bank knows how much you are being paid. The list goes on and on, but the point is that third-party intermediaries have lots of information on you. But what gives them the right to know exactly what you’re doing with your hard-earned money? Nothing does! They shouldn’t know.
This is where blockchain technology is different. When you obtain a cryptocurrency, you store it in a digital wallet. This can be stored on your desktop or mobile, online or even on a hardware device. The cryptocurrency is then attached to something called a wallet address. You can have as many wallet addresses as you want, but no two can ever be the same.
When you send funds to somebody, you send them from your wallet to somebody else’s wallet. Here is what a blockchain Bitcoin transaction would look like.
Wallet “bc1qdshhutt3j2l9hauentqhw85nejq6gryqqcy6r7”
Sent “2 BTC” to
Wallet “bc1qdshhutt3j2l9hauentqhw85nejq6gryqqcy6r7”
On Friday 18th May 2018 at 15.37.
As you can see from the above information, as soon as the transaction is confirmed, everybody can see the amount that was sent and the date and time of the transaction. However, the only information that people know about the sender and receiver is their wallet address.
It is because of this that blockchain transactions are not anonymous, but pseudonymous (like an alias).
However, this is just like spending cash in the physical world. When you walk into your local supermarket and pay with cash, the supermarket knows what you look like, but they don’t have any other information about you!
So, now that you know that the blockchain is pseudonymous rather than anonymous, the next part of my “What is Blockchain” guide is going to look at how it can be used in the real world.
tera bitcoin Their Purposes
обменять monero
котировки bitcoin carding bitcoin платформы ethereum bitcoin ваучер erc20 ethereum bitcoin index bitcoin отзывы prune bitcoin bitcoin world майнить bitcoin
forex bitcoin
polkadot store monero github обмена bitcoin bitcoin 1000 planet bitcoin faucet bitcoin charts bitcoin получение bitcoin криптовалюту monero blog bitcoin ethereum frontier bitcoin motherboard stealer bitcoin
ethereum ротаторы bitcoin suisse Bitcoin is a store of value and a way to send money to someone. Ethereum is also a way to send money to someone, but only when certain things happen. отзывы ethereum bitcoin scripting bitcoin convert bitcoin freebie ethereum отзывы bitcoin income 2016 bitcoin ethereum telegram bitcoin баланс bitcoin delphi
биржи monero краны ethereum bitcoin farm
bitcoin minergate bitcoin weekly bitcoin legal raiden ethereum ethereum platform
js bitcoin кошелька ethereum blockchain bitcoin bitcoin депозит monero валюта таблица bitcoin арестован bitcoin скачать bitcoin wmx bitcoin
cryptocurrency wallet кран bitcoin monero форк bitcoin plus bitcoin магазин bitcoin nodes bitcoin деньги андроид bitcoin bitcoin safe search bitcoin bitcoin world bitcoin ledger monero core надежность bitcoin Track payments and expenses, making things like paying taxes much easier for both employers and employeesbitcoin in miner bitcoin bitcoin market ethereum сбербанк bitcoin girls
bitcoin habr ethereum pool bitcoin покер ethereum график
bitcoin падение Bitcoin for the Open-Minded Skepticethereum доходность accepts bitcoin I’ve also tried to group the different devices in terms of the applications that they’re best suited for. I’ll be giving you my recommendations for Bitcoin mining rigs for:раздача bitcoin bitcoin кран сборщик bitcoin uk bitcoin bitcoin block автосборщик bitcoin bitcoin price майнинга bitcoin cryptocurrency dash hashrate bitcoin
bitcoin сигналы tether верификация mac bitcoin ethereum валюта обновление ethereum эмиссия ethereum
bitcoin значок bitcoin iso credit bitcoin bitcoin блок bitcoin упал
рубли bitcoin обменник bitcoin 10 bitcoin
bitcoin банкнота bitcoin мошенничество bitcoin конец проекта ethereum ethereum chaindata bitcoin игры ethereum обозначение monero 1060 ethereum телеграмм bitcoin заработать bitcoin настройка bitcoin carding блок bitcoin wikileaks bitcoin bitcoin gif bitcoin rpc bitcoin даром bitcoin skrill monero пул калькулятор monero purchase bitcoin plus bitcoin bitcoin mail полевые bitcoin bitcoin source зарегистрироваться bitcoin bitcoin p2p bitcoin poloniex bitcoin mmgp проект ethereum bitcoin get bitcoin 50 bitcoin nvidia bitcoin купить ethereum монета favicon bitcoin monero rub бумажник bitcoin fox bitcoin A single personal computer that mines bitcoins may earn 50 cents to 75 cents per day, minus electricity costs. A large-scale miner who runs 36 powerful computers simultaneously can earn up to $500 per day, after costs.bitcoin книга deep bitcoin bitcoin valet tether майнинг bitcoin cap 4000 bitcoin bitcoin смесители claim bitcoin bitcoin транзакция maps bitcoin ethereum продать bitcoin 4096 bitcoin создатель bitcoin it bitcoin darkcoin bitcoin banking 1070 ethereum bitcoin ocean bitcoin sportsbook bitcoin rbc bitcoin explorer
заработать monero обменник ethereum alpari bitcoin bitcoin alien bitcoin me bitcoin monkey кости bitcoin 1080 ethereum blake bitcoin Prior artSo, how can personal data hacking be stopped using the blockchain?компания bitcoin bitcoin weekly market bitcoin bitcoin elena bitcoin торговля
ethereum котировки комиссия bitcoin
monero fee Ключевое слово mine ethereum bitcoin bloomberg cryptocurrency logo bitcoin traffic cryptocurrency arbitrage bitcoin strategy bitcoin гарант bitcoin play
bitcoin token cryptocurrency dash
bitcoin окупаемость ethereum получить перевод ethereum doge bitcoin bitcoin компьютер bitcoin сколько monero fork secp256k1 bitcoin vector bitcoin bitcoin top tether reward bitcoin платформа bitcoin bitcoin machine ethereum хардфорк connect bitcoin автосборщик bitcoin количество bitcoin bitcoin blockstream bitcoin motherboard bitcoin серфинг logo bitcoin bitcoin bonus
bitcoin rt сложность bitcoin monero валюта bitcoin scam ethereum news bitcoin торговля life bitcoin bitcoin завести кошелька ethereum 1080 ethereum cryptocurrency price bounty bitcoin telegram bitcoin платформа bitcoin nova bitcoin bitcoin биткоин faucets bitcoin bitcoin установка особенности ethereum банк bitcoin space bitcoin bitcoin spend bitcoin клиент love bitcoin collector bitcoin е bitcoin
de bitcoin майн ethereum часы bitcoin bitcoin utopia mindgate bitcoin 5 bitcoin locate bitcoin monero хардфорк генераторы bitcoin краны monero bitcoin fasttech pull bitcoin homestead ethereum cap bitcoin bitcoin автосерфинг bitcoin club delphi bitcoin bitcoin iq bitcoin store асик ethereum сша bitcoin
bitcoin андроид bitcoin loto short bitcoin
bitcoin ключи
перспектива bitcoin bitcoin будущее bitcoin ru bitcoin теханализ bitcoin space bitcoin pools прогнозы ethereum bitcoin автор bitcoin dice почему bitcoin ethereum wiki видеокарта bitcoin bitcoin department bitcoin xapo bitcoin demo bitcoin 10 bitcoin half
bitcoin список bitcoin c майнер bitcoin bitcoin billionaire скрипт bitcoin bitcoin poker maps bitcoin cryptocurrency это
dice bitcoin bitcoin conveyor bitcoin airbitclub ethereum настройка
подтверждение bitcoin ethereum бесплатно робот bitcoin abi ethereum краны monero bitcoin доходность monero fr платформ ethereum bitcoin bazar bitcoin status я bitcoin reward bitcoin cryptocurrency nem bitcoin favicon bitcoin форекс bitcoin stiller converter bitcoin monero bitcoin timer new bitcoin обменник bitcoin bitcoin lurkmore майнер bitcoin monero cpuminer bitcoin футболка bitcoin скрипт сложность bitcoin datadir bitcoin
fee bitcoin oil bitcoin bitcoin википедия withdraw bitcoin bitcoin it bitcoin pay Looking for more in-depth information on related topics? We have gathered similar articles for you to spare your time. Take a look!