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 “1BoatSLRHtKNngkdXEeobR76b53LETtpyT”
Sent “2 BTC” to
Wallet “1CfaunqrVpcXmpLheUVWeSP1KPsKDha1Nb”
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.
monero обменять bitcoin бесплатно ann ethereum инвестирование bitcoin программа tether прогноз bitcoin bitcoin cgminer stock bitcoin технология bitcoin bitcoin 123 bitcoin captcha
token bitcoin
foto bitcoin bitcoin get
bitcoin unlimited abi ethereum trading bitcoin bitcoin buying keys bitcoin bitcoin пирамиды добыча bitcoin bitcoin значок bitcoin changer ethereum web3 bitcoin cryptocurrency bitcoin miner bitcoin перевод продам bitcoin cold bitcoin получение bitcoin global bitcoin bit bitcoin tether пополнение bitcoin автосерфинг maps bitcoin mac bitcoin отдам bitcoin bitcoin png bitcoin capital bitcoin store майнить bitcoin bitcoin farm 2016 bitcoin wallets cryptocurrency bitcoin airbit total cryptocurrency bitcoin bit chvrches tether local ethereum Encrypting your wallet or your smartphone allows you to set a password for anyone trying to withdraw any funds. This helps protect against thieves, though it cannot protect against keylogging hardware or software.How does Bitcoin work?nanopool ethereum neo bitcoin прогнозы bitcoin bitcoin 1000
okpay bitcoin bitcoin cost moto bitcoin frontier ethereum
bitcoin vk
coffee bitcoin
torrent bitcoin flappy bitcoin логотип bitcoin
рынок bitcoin фото ethereum chart bitcoin monero cpu bitcoin io bitcoin eu bitcoin лого bitcoin blue bitcoin ru statistics bitcoin ethereum статистика форекс bitcoin bonus ethereum coffee bitcoin kurs bitcoin bitcoin стратегия ethereum проблемы bitcoin ethereum cryptocurrency dash
up bitcoin rigname ethereum monero алгоритм
курсы bitcoin wmz bitcoin monero форк форк bitcoin ava bitcoin simplewallet monero продать monero bitcoin cz ethereum транзакции
bitcoin map monero client bitcoin авито rx580 monero miner bitcoin ethereum упал биткоин bitcoin
takara bitcoin monero hardware captcha bitcoin bitcoin quotes ethereum frontier adc bitcoin bitcoin half space bitcoin crococoin bitcoin bitcoin анимация
security bitcoin pow bitcoin monero график bitcoin change новости bitcoin биржи bitcoin bitcoin portable dance bitcoin
wild bitcoin reklama bitcoin bitcoin kran сборщик bitcoin bitcoin datadir bitcoin лопнет дешевеет bitcoin деньги bitcoin ethereum проекты эфир ethereum работа bitcoin bitcoin rotator bitcoin skrill генераторы bitcoin roulette bitcoin
bitcoin prominer analysis bitcoin alpari bitcoin использование bitcoin bitcoin forums bitcoin кошельки
bitcoin aliens bitcoin 3d торрент bitcoin что bitcoin yota tether ферма ethereum bitcoin ecdsa bitcoin loan simplewallet monero скачать tether carding bitcoin
bitcoin sell перспектива bitcoin trade bitcoin bitcoin принцип
значок bitcoin bitcoin сервисы динамика bitcoin вывод ethereum bitcoin инструкция nicehash bitcoin monero майнинг bcc bitcoin bitcoin landing сложность monero ethereum регистрация bitcoin казино bitcoin mempool bitcoin игры bitcoin tm grayscale bitcoin bitcoin fasttech bitcoin maps bitcoin депозит card bitcoin краны bitcoin
bitcoin center форк ethereum bitcoin доллар cryptonator ethereum price bitcoin
platinum bitcoin monero windows
bitcoin adress frontier ethereum ethereum pow map bitcoin bitcoin php bitcoin фарм simple bitcoin bitcoin ticker
bitcoin инструкция ethereum news ethereum прогноз ethereum news monero майнинг platinum bitcoin bitcoin карты cryptocurrency news валюты bitcoin
bitcoin проблемы продажа bitcoin bitcoin index bitcoin analytics bitcoin nvidia miner bitcoin bitcoin conf faucet cryptocurrency
lucky bitcoin reddit ethereum armory bitcoin bitcoin banks
проект bitcoin хешрейт ethereum bitcoin ферма cryptocurrency mining bitcoin hub
bitcoin code bitcoin formula bitcoin зарабатывать invest bitcoin фермы bitcoin
spots cryptocurrency bitcoin телефон
it bitcoin bitcoin eu currency bitcoin bitcoin grant drip bitcoin monero биржи earn bitcoin abi ethereum cryptocurrency trading blitz bitcoin bitcoin io Blockchains, which are organizational methods for ensuring the integrity of transactional data, is an essential component of many cryptocurrencies.moneypolo bitcoin заработок ethereum сколько bitcoin explorer ethereum bitcoin spinner bitcoin indonesia основатель bitcoin reindex bitcoin
carding bitcoin платформы ethereum добыча bitcoin bitcoin зарегистрироваться txid ethereum cold bitcoin bitcoin кредиты
carding bitcoin bitcoin комиссия bitcoin spin
bitcoin code
добыча monero tether ico zcash bitcoin alpari bitcoin bitcoin satoshi нода ethereum to bitcoin bitcoin png
создатель bitcoin ann monero bitcoin кошелек bitcoin usb андроид bitcoin carding bitcoin bitcoin reindex rates bitcoin sec bitcoin ninjatrader bitcoin bitcoin конверт tether usb рейтинг bitcoin
server bitcoin flypool monero okpay bitcoin bitcoin описание bitcoin mercado monero client bitcoin arbitrage
bitcoin blockchain
майнинг monero exchange ethereum вклады bitcoin эмиссия ethereum monero gpu satoshi bitcoin bitcoin ether tether 4pda
bitcoin roll dance bitcoin 1. Find the power draw of your ASIC. This should be clearly stated in the manual under specifications. The S9 uses 1,275 Watts.партнерка bitcoin vk bitcoin bitcoin accelerator Monero mining: source code.matrix bitcoin bitcoin ваучер bitcoin приват24 bitcoin save полевые bitcoin калькулятор bitcoin
machines bitcoin
machine bitcoin checker bitcoin инструкция bitcoin buying bitcoin bitcoin plugin bitcoin доллар bitcoin завести портал bitcoin bitcoin shops bitcoin ledger bitcoin telegram gold cryptocurrency bitcoin me цена ethereum bitcoin биткоин keystore ethereum secp256k1 ethereum bitcoin analytics donate bitcoin ethereum news вывод ethereum ethereum капитализация trading cryptocurrency оборудование bitcoin
bitcoin сборщик bitcoin sberbank 99 bitcoin bitcoin продам On-Chain Governanceadbc bitcoin bitcoin usd tether android форки ethereum проект bitcoin bitcoin book bitcoin бумажник bitcoin надежность bitcoin 99 bitcoin это
bitcoin markets заработать monero блок bitcoin bitcoin rub bitcoin xapo up bitcoin bitcoin зарегистрировать pow bitcoin bitcoin analysis bitcoin индекс скрипт bitcoin q bitcoin ethereum аналитика polkadot store Lіtесоіn (LTC оr Ł ) is a рееr-tо-рееr сrурtосurrеnсу аnd open ѕоurсе software project released under MIT/X11 lісеnѕеѕ. Crеаtіоn аnd transfer оf соіnѕ іѕ bаѕеd on an ореn source сrурtоgrарhіс рrоtосоl and іѕ nоt mаnаgеd bу аnу сеntrаl authority. Whіlе inspired bу, and in mоѕt regards technically almost іdеntісаl tо Bіtсоіn (BTC), Litecoin іѕ far quісkеr аnd cheaper.пул monero ethereum crane trade cryptocurrency The Difficulty Metricкиа bitcoin bitcoin fields bitcoin банкнота bitcoin arbitrage p2p bitcoin get bitcoin bitcoin приложение андроид bitcoin
claim bitcoin day bitcoin bitcoin biz
bitcoin xyz monero hardware
ethereum биржи ethereum course bitcoin регистрация история ethereum bitcoin chart карты bitcoin
blogspot bitcoin bitcoin moneypolo
bitcoin express ethereum studio bitcoin rotator tether перевод bitcoin официальный ethereum адрес bitcoin cnbc bitcoin lottery algorithm bitcoin tp tether бесплатные bitcoin ethereum stats tether 4pda system bitcoin express bitcoin bitcoin step bitcoin magazin rpg bitcoin avatrade bitcoin обмен tether tether apk bio bitcoin carding bitcoin таблица bitcoin second bitcoin bitcoin андроид bitcoin swiss
bitcoin click xmr monero
bitcoin x2 bitcoin история bitcoin блок ecopayz bitcoin 0 bitcoin boom bitcoin 777 bitcoin bitcoin core explorer ethereum tether перевод mikrotik bitcoin
bitcoin rpg bitcoin collector bitcoin pay tera bitcoin
attack bitcoin приват24 bitcoin сокращение bitcoin