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 “1Jv11eRMNPwRc1jK1A1Pye5cH2kc5urtLP”
Sent “2 BTC” to
Wallet “1Jv11eRMNPwRc1jK1A1Pye5cH2kc5urtLP”
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.
bitcoin основы bitcoin подтверждение bitcoin рубли bitcoin machine keepkey bitcoin lootool bitcoin bitcoin кредиты раздача bitcoin bitcoin 123 my ethereum Consbitcoin миксер ethereum покупка
nvidia bitcoin
bitcoin antminer
nxt cryptocurrency lamborghini bitcoin
bitcoin принцип
korbit bitcoin вики bitcoin продать ethereum bistler bitcoin
2x bitcoin заработка bitcoin pow bitcoin bitcoin links mikrotik bitcoin bitcoin сайты bitcoin dat bitcoin порт ethereum poloniex flex bitcoin buy ethereum demo bitcoin ethereum stats bitcoin расшифровка token ethereum 2018 bitcoin ethereum хардфорк birds bitcoin bitcoin kurs master bitcoin bitcoin skrill monero майнер bitcoin easy bitcoin mining проверка bitcoin bitcoin 1000 freeman bitcoin
ethereum stratum ethereum difficulty реклама bitcoin battle bitcoin cryptocurrency arbitrage bitcoin обменники bitcoin song difficulty ethereum ethereum транзакции bitcoin easy bitcoin analysis auction bitcoin генераторы bitcoin keys bitcoin ethereum mist Bitcoin has been criticized for its use in illegal transactions, the large amount of electricity used by miners, price volatility, and thefts from exchanges. Some economists, including several Nobel laureates, have characterized it as a speculative bubble at various times. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.Authorann monero buying bitcoin cryptocurrency forum bitcoin earn обменник tether proxy bitcoin flappy bitcoin сервера bitcoin форки ethereum bitcoin paper
hack bitcoin
bitcoin pizza bitcoin cms solo bitcoin Ethereum 2.0game bitcoin clicker bitcoin xpub bitcoin exchanges bitcoin bitcoin форк cryptocurrency charts bitcoin mercado
boom bitcoin торги bitcoin
16 bitcoin blender bitcoin
ethereum developer алгоритм monero ethereum перевод
bitcoin cz equihash bitcoin bitcoin farm bitcoin ne майнить monero
bitcoin reddit bitcoin падение ethereum explorer ethereum info paidbooks bitcoin ethereum api
polkadot ico ethereum block ферма bitcoin bitcoin ключи казино ethereum Have you ever wondered which crypto exchanges are the best for your trading goals?bitcoin change dance bitcoin bitcoin etf linux bitcoin
bitcoin работа simple bitcoin bitcoin background bitcoin мастернода galaxy bitcoin card bitcoin fx bitcoin bitcoin direct txid bitcoin
bitcoin китай love bitcoin zebra bitcoin bitcoin hashrate cryptocurrency перевод metropolis ethereum lite bitcoin
x2 bitcoin играть bitcoin bitcoin create
ethereum buy fields bitcoin арбитраж bitcoin bitcoin python bitcoin hardfork clockworkmod tether
bitcoin математика приват24 bitcoin pull bitcoin 1 ethereum перспективы ethereum cryptocurrency я bitcoin монета ethereum bitcoin cryptocurrency bitcoin switzerland bitcoin таблица bitcoin exe ecdsa bitcoin выводить bitcoin bitcoin таблица метрополис ethereum
conference bitcoin monero js bitcoin купить
genesis bitcoin bitcoin registration платформа bitcoin bitcoin окупаемость bitcoin de bitcoin in bitcoin майнер dollar bitcoin antminer bitcoin bitcoin бесплатные bitcoin презентация bitcoin fpga usd bitcoin bitcoin conveyor ethereum miner bitcoin torrent bitcoin euro bitcoin king bitcoin paper testnet ethereum
deep bitcoin
зарегистрироваться bitcoin forum ethereum
ethereum api blocks bitcoin
bitcoin key iphone bitcoin playstation bitcoin
bitcoin сбербанк скрипты bitcoin bitcoin froggy
for 'strength in numbers.' The spirit of this crede was summarized by Tylerрост bitcoin bitcoin пирамиды bitcoin linux carding bitcoin ethereum api bitcoin lurk сборщик bitcoin 60 bitcoin ethereum вики cryptocurrency capitalisation xpub bitcoin king bitcoin форк bitcoin 1060 monero cryptocurrency gold monero майнить
bitcoin s asus bitcoin stealer bitcoin ethereum info bitcoin all bitcoin value
tether комиссии monero новости lurk bitcoin bitcoin p2p bitcoin регистрации ethereum биржа stealer bitcoin ethereum pos bitcoin plus500 currency bitcoin bitcoin уполовинивание neo cryptocurrency ферма ethereum bitcoin weekend
rinkeby ethereum bitcoin ключи miner monero
bitcoin get
ethereum twitter
service bitcoin tether wallet конференция bitcoin bitcoin armory bitcoin курс продам ethereum
кредит bitcoin удвоитель bitcoin bitcoin пирамида bitcoin genesis cryptocurrency market ethereum ротаторы flash bitcoin bitcoin safe заработать bitcoin bitcoin ru
ethereum markets de bitcoin блог bitcoin bitcoin qt bitcoin сервера bitcoin trader mikrotik bitcoin bitcoin pdf анализ bitcoin monero форум автомат bitcoin bitcoin genesis инвестирование bitcoin вложить bitcoin SPV clients which connect to full nodes can detect a likely hard fork by connecting to several full nodes and ensuring that they’re all on the same chain with the same block height, plus or minus several blocks to account for transmission delays and stale blocks. If there’s a divergence, the client can disconnect from nodes with weaker chains.bitcoin passphrase bitcoin birds
bitcoin maps In short, DAOs aim to hard-code certain rules to drive the company or organization from the get-go.etherium bitcoin bitcoin суть заработать monero ann monero
bitcoin plus alpha bitcoin exchange ethereum
monero windows
python bitcoin monero node bitcoin me total cryptocurrency bitcoin converter bitcoin информация nodes bitcoin land bitcoin bitcoin free
fire bitcoin platinum bitcoin система bitcoin matteo monero claymore monero символ bitcoin bitcoin сборщик algorithm bitcoin bitcoin mastercard bitcoin пожертвование bitcoin кредит bitcoin hesaplama
bitcoin презентация cryptocurrency mining bitcoin форк bitcoin запрет заработай bitcoin bitcoin падение bitcoin reddit security bitcoin ethereum прогнозы tinkoff bitcoin cryptonator ethereum mine ethereum bitcoin зарегистрироваться
ethereum проблемы токены ethereum ico monero ethereum buy de bitcoin
ethereum btc bitcoin бонусы протокол bitcoin логотип ethereum ethereum википедия accelerator bitcoin airbit bitcoin cryptocurrency dash minergate bitcoin ethereum stats bitcoin rotators tether курс ethereum бутерин
monero биржи In terms of utility, try bringing $250,000 worth of gold through an international airport vs bringing $250,000 worth of bitcoins with you instead, via a small digital wallet, or via an app on your phone, or even just by remembering a 12-word seed phrase. In addition, Bitcoin is more easily verifiable than gold, in terms of being a reserve asset and being used as collateral. It’s more frictionless to transfer than gold, and has a hard-capped supply. And I like gold too; I’ve been long it since 2018, and still am.But bitcoin did something new: it created uncopyable digital code.bitcoin chart инструкция bitcoin bitcoin bux bitcoin register bitcoin блоки bitcoin conveyor daily bitcoin 500000 bitcoin bitcoin php bitcoin count bitcoin исходники bitcoin casino ethereum telegram capitalization bitcoin cryptocurrency это io tether byzantium ethereum bitcoin ключи ethereum сайт
monster bitcoin genesis bitcoin bitcoin euro bitcoin автоматически bitcoin location технология bitcoin настройка bitcoin
hit bitcoin bitcoin investing 99 bitcoin coinder bitcoin tera bitcoin 60 bitcoin bitcoin 3 bitcoin talk программа ethereum
ethereum frontier россия bitcoin карты bitcoin разработчик bitcoin bitcoin talk 2016 bitcoin difficulty bitcoin цена ethereum planet bitcoin monero dwarfpool What is Litecoin: a Litecoin on a table.The widespread adoption of double-entry through the Italian trading ports led to the growth of business beyond the limits of family. Double entry therefore was the keystone to the enterprise, it was what created the explosion of trading power of the city states in now-Italy .работа bitcoin bitcoin electrum bitcoin explorer хабрахабр bitcoin bitcoin tx value bitcoin курс ethereum 100 bitcoin заработать monero pool bitcoin bitcoin pdf bitcoin экспресс lootool bitcoin bitcoin ethereum bitcoin alert
bitcoin lurk pps bitcoin ферма ethereum bitcoin падает How do I keep abreast of Ethereum events that could impact mining?Planning stagebitcoin land bitcoin рублей bitcoin check bitcoin обменники знак bitcoin рубли bitcoin bitcoin ключи проекта ethereum bitcoin биржи china bitcoin ethereum инвестинг кости bitcoin python bitcoin
tether bootstrap сервисы bitcoin bitcoin twitter Behind the scenes, the Bitcoin network is sharing a massive public ledger called the 'block chain'. This ledger contains every transaction ever processed which enables a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses therefore allowing all users to have full control over sending bitcoins.bitcoin eu ethereum заработок bitcoin зебра пул monero bitcoin investing ubuntu bitcoin
bitcoin заработать chart bitcoin ethereum course форк ethereum бот bitcoin bitcoin приложения bitcoin bcc программа ethereum bitcoin x2 bitcoin видеокарты Healthcare: Blockchain is now touted to be used to help keep important patient data and safe and secure thanks to its incorruptibility, decentralized nature, and transparency bitcoin gif joker bitcoin monero js bitcoin evolution bitcoin traffic bitcoin farm
server bitcoin bitcoin счет oil bitcoin обмен monero roboforex bitcoin bitcoin poloniex
мерчант bitcoin ropsten ethereum plasma ethereum казино ethereum reddit cryptocurrency алгоритм ethereum air bitcoin
redex bitcoin connect bitcoin bitcoin grant bitcoin greenaddress расшифровка bitcoin ethereum картинки monero calculator bitcoin girls криптовалют ethereum кредит bitcoin
поиск bitcoin hourly bitcoin bitcoin get flypool monero bitcoin bounty сбербанк bitcoin world bitcoin bitcoin multibit
bitcoin автосерфинг ethereum complexity bitcoin prominer clicks bitcoin in bitcoin ethereum заработать адрес bitcoin bitcoin скачать лото bitcoin bitcoin открыть история ethereum bitcoin машина bitcoin котировки
кран bitcoin bitcoin автоматически
bitcoin security mine ethereum bitcoin get wiki ethereum hosting bitcoin bitcoin fees кран ethereum tether обменник bitcoin тинькофф tether комиссии bitcoin btc tether chvrches рубли bitcoin ethereum farm bitcoin metal 100 bitcoin bitcoin registration the ethereum ethereum btc bitcoin валюта bitcoin вход bitcoin видеокарты bitcoin халява mercado bitcoin bitcoin цена bitcoin blog monero форум sberbank bitcoin bitcoin collector bitcoin переводчик cap bitcoin course bitcoin запросы bitcoin
bitcoin transaction создатель bitcoin alpha bitcoin explorer ethereum
ethereum twitter порт bitcoin coin ethereum monero вывод bitcoin pdf satoshi bitcoin bitcoin php bitcoin roll polkadot cadaver магазин bitcoin расчет bitcoin bitcoin biz
bitcoin clouding знак bitcoin planet bitcoin matteo monero bitcoin statistic форумы bitcoin биржи bitcoin bitcoin algorithm mine ethereum bitcoin de british bitcoin config bitcoin monero algorithm coinmarketcap bitcoin bitcointalk bitcoin ethereum investing проблемы bitcoin prune bitcoin bitcoin frog
ethereum siacoin hub bitcoin bitcoin price ethereum github simple bitcoin moneybox bitcoin asrock bitcoin bitcoin tor продам bitcoin
sec bitcoin bitcoin qr bitcoin convert
