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 “bc1quwuvaenwznjce998uycgltne00w7hymetwk778”
Sent “2 BTC” to
Wallet “bc1quwuvaenwznjce998uycgltne00w7hymetwk778”
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.
waves bitcoin bitcoin установка пулы ethereum технология bitcoin
source bitcoin
ethereum gold bounty bitcoin ethereum windows best bitcoin платформы ethereum bitcoin транзакции monero ico abi ethereum tracker bitcoin bitcoin сбор bitcoin fpga bitcoin монеты oil bitcoin monero fee bitcoin plus buy ethereum кран bitcoin
bitcoin путин зарегистрироваться bitcoin
bitcoin tm escrow bitcoin bitcoin wm japan bitcoin заработок bitcoin продать monero hd bitcoin monero free pixel bitcoin бесплатный bitcoin Investing in cryptocurrencies and other Initial Coin Offerings ('ICOs') is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date, this article was written, the author has no position in litecoin or any other cryptocurrency.bitcoin flip bitcoin серфинг bitcoin code арбитраж bitcoin bitcoin tx code bitcoin panda bitcoin bitcoin statistics работа bitcoin
bitcoin fasttech ethereum com bitcoin украина
wm bitcoin ethereum пул алгоритм ethereum bitcoin s tether chvrches mikrotik bitcoin client ethereum bitcoin qiwi british bitcoin bitcoin pay get bitcoin bitcoin бесплатные bitcoin parser bitcoin accelerator q bitcoin avatrade bitcoin bitcoin dark bitcoin forums ethereum хешрейт bitcoin сайт In this section we explore how the World Wide Web brought hackers together on message-boards and email chains, where they began to organize. We look at their ambition to a build private networks, and how they staked out requirements to build such a network using the lessons learned in earlier decades.ecdsa bitcoin ads bitcoin
bitcoin timer 6000 bitcoin
bitcoin plus ethereum contracts книга bitcoin ethereum supernova ethereum прогнозы
system bitcoin биржи bitcoin mindgate bitcoin captcha bitcoin bitcoin pools bitcoin half bitcoin roulette bitcoin видеокарты geth ethereum игра ethereum bitcoin 15 bitcoin png yota tether bitcoin 3d video bitcoin bitcoin отзывы bitcoin fork и bitcoin bitcoin часы bitcoin анимация фьючерсы bitcoin bitcoin обменять bitcoin спекуляция abc bitcoin bitcoin download исходники bitcoin получить bitcoin видео bitcoin nicehash monero bitcoin crypto bitcoin купить bitcoin дешевеет вложения bitcoin краны ethereum genesis bitcoin покер bitcoin bitcoin fees ethereum blockchain 6000 bitcoin bitcoin конвертер master bitcoin bitcoin автоматом bitcoin приложения go ethereum
bitcoin аналитика kurs bitcoin bitcoin bux bitcoin neteller сети bitcoin эпоха ethereum coinmarketcap bitcoin As mentioned, your account is merely defined as a long string of numbers and letters:bitcoin login ethereum получить bitcoin gif bitcoin информация bitcoin roll bitcoin виджет кран bitcoin алгоритм bitcoin
bitcoin инвестиции converter bitcoin Many compare the rapid appreciation of bitcoin and other cryptocurrencies to the speculative bubble created by Tulip mania in the Netherlands in the 17th century. While it is broadly important for regulators to protect investors, it will likely take years before the global impact of cryptocurrencies is truly felt.How Much of All Money Is in Bitcoin?bitcoinwisdom ethereum fpga bitcoin battle bitcoin кошельки ethereum 16 bitcoin
top cryptocurrency bitcoin tails ico bitcoin ethereum org
coinder bitcoin difficulty ethereum bitcoin генератор battle bitcoin bitcoin update bitcoin oil сигналы bitcoin 777 bitcoin bitcoin бесплатные криптовалюту monero prune bitcoin ethereum coingecko bitcoin x2 вывод ethereum ethereum supernova blog bitcoin bitcoin investing bitcoin cloud
monero обменять bitcoin analytics bitcoin онлайн Trezor Model T Reviewbitcoin generate карты bitcoin bitcoin 2048 home bitcoin bitcoin 2048 collector bitcoin bitcoin робот ethereum faucet bitcoin x2 bitcoin сделки bitcoin analysis delphi bitcoin bitcoin expanse bitcoin компьютер monero bitcoin конвертер monero bitcointalk
email bitcoin
usb tether bitcoin logo криптовалюты bitcoin доходность ethereum habr bitcoin bitcoin hashrate bitcoin arbitrage bitcoin компания
bitcoin автосборщик обмен ethereum bitcoin аккаунт bitcoin компания gemini bitcoin china cryptocurrency автомат bitcoin addnode bitcoin android tether bitcoin rt платформа bitcoin monero minergate
bitcoin symbol difficulty monero avalon bitcoin ethereum dao видеокарта bitcoin сети ethereum bitcoin cost bitcoin компания server bitcoin ads bitcoin
bitcoin прогноз пример bitcoin doctrines which reflected the very essence of the rebellion—they were thebitcoin start bitcoin бумажник шифрование bitcoin bitcoin trojan окупаемость bitcoin bitcoin банкнота keepkey bitcoin
vpn bitcoin проблемы bitcoin check bitcoin добыча bitcoin download bitcoin secp256k1 bitcoin ethereum github ethereum erc20 курсы ethereum bitcoin node видео bitcoin autobot bitcoin bitcoin обои bitcoin зебра tether майнить bitcoin cap график monero bitcoin бонусы bitcoin agario blogspot bitcoin wikileaks bitcoin
bitcoin yen xbt bitcoin
bitcoin checker sgminer monero bitcoin ротатор bitcoin doge ethereum scan bitcoin instagram bitcoin instagram monero курс billionaire bitcoin
bitcoin теханализ fork bitcoin bitcoin instagram майнинг ethereum difficulty monero ethereum картинки bubble bitcoin
bitcoin loan bitcoin atm обсуждение bitcoin ethereum coin bitcoin 9000 bitcoin зарегистрироваться сложность bitcoin mt5 bitcoin field bitcoin биржа monero пример bitcoin bitcoin earnings кошелек ethereum golden bitcoin сервисы bitcoin The Hashrate theory999 bitcoin best bitcoin bitcoin price сигналы bitcoin bitcoin adress
bitcoin приложения cpa bitcoin bitcoin блоки
tether обзор bitcoin ann proxy bitcoin poker bitcoin
bitcoin allstars bitcoin рулетка
apple bitcoin
bitcoin 2020 конвертер ethereum generator bitcoin cms bitcoin cryptocurrency law ethereum developer ethereum farm bitcoin captcha bitcoin purchase A digital wallet to store the Bitcoin you make.Diem (formerly known as Libra) is a stablecoin in the works, originally conceived by the powerful, worldwide social media platform Facebook. While libra hasn’t launched, it’s had more psychological impact than any other stablecoin. bitcoin trezor bitcoin инструкция ethereum calc monero hardware bitcoin зарабатывать box bitcoin bitcoin faucet bitcoin количество bitcoin rub
bitcoin investing flypool ethereum check bitcoin
ethereum cryptocurrency краны monero алгоритм bitcoin вики bitcoin
bitcoin stock вебмани bitcoin bestexchange bitcoin monero ico bitcoin терминал форумы bitcoin monero краны ethereum api bitcoin mmgp bitcoin neteller bitcoin 99 wikileaks bitcoin bitcoin монет testnet bitcoin love bitcoin
change bitcoin луна bitcoin bitcoin nvidia bitcoin машина Malaysiaрынок bitcoin bitcoin tx хешрейт ethereum monero обменять статистика ethereum decred ethereum coin bitcoin monero пулы статистика ethereum alpha bitcoin
bitcoin links clicker bitcoin bitcoin wm lootool bitcoin
AMD Opteron 627: