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.
information bitcoin bitcoin часы eth ethereum At the moment, the hot Ethereum debate revolves around this coin’s long-term prospects. The question you should be asking yourself now is this: 'Should I invest in Ethereum long-term?'. The answer depends on whom you believe after doing some extra research on the web.The Hype Cycle Theorybitcoin symbol bitcoin авто bitcoin parser monero кошелек ethereum упал ethereum geth bitcoin multiply clame bitcoin tcc bitcoin hashrate ethereum майнить monero bitcoin location reddit cryptocurrency What Is a Blockchain?tether usb loan bitcoin monero rur bitcoin алгоритм продам bitcoin ethereum бесплатно блок bitcoin
купить ethereum
lootool bitcoin nubits cryptocurrency strategy bitcoin
ethereum bitcoin tether 4pda bitcoin tools
вики bitcoin
символ bitcoin bitcoin koshelek
platinum bitcoin There is a general belief that over time it will become more and more difficult to make changes to the base protocol as the ecosystem grows. This is because there will be fewer and fewer changes that are uncontroversial to the wider variety of perspectives and incentives of the user base. As such, it will be more likely that improvements will have to take place in other layers built on top of Bitcoin.вики bitcoin flash bitcoin nvidia bitcoin ethereum stratum ethereum mine bitcoin china
ethereum рост bitcoin otc algorithm ethereum bitcoin evolution bitcoin пул java bitcoin магазин bitcoin криптовалют ethereum транзакция bitcoin invest bitcoin
bitcoin monero bitcoin telegram bitcoin проблемы pay bitcoin love bitcoin bitcoin vps bitcoin котировки сборщик bitcoin Some people say that Ether’s price may reach $0 for the first time, while some claim that it will recover. Some analysts even predict that Ethereum price could rise to $1,000 by the end of the year as developers improve the platform and solve some of its scaling issues.bitcoin расчет bitcoin 2010 locate bitcoin
bounty bitcoin bitcoin автоматический bitcoin spinner bitcoin puzzle bitcoin calculator the ethereum bitcoin greenaddress сайт ethereum create bitcoin ethereum supernova erc20 ethereum monero dwarfpool bitcoin script wallet tether *****a bitcoin alipay bitcoin pow bitcoin x2 bitcoin ethereum *****u полевые bitcoin cudaminer bitcoin bitcoin форк bitcoin electrum адреса bitcoin *****a bitcoin hack bitcoin bitcoin coin продать monero monero nvidia bitcoin cz bitcoin 1000 mindgate bitcoin monero address bitcoin games
bitcoin ishlash monero free node bitcoin
best bitcoin bitcoin cny bitcoin avalon monero fr card bitcoin bitcoin cranes bitcoin прогноз графики bitcoin
registration bitcoin bitcoin asic bitcoin бумажник бесплатные bitcoin ethereum новости bitcoin зарегистрировать nanopool monero blue bitcoin titan bitcoin bitcoin maps bitcoin онлайн bitcoin поиск cryptocurrency wallet bitcoin start майн ethereum проект bitcoin bitcoin monero bitcoin лопнет bitcoin example ethereum капитализация value bitcoin ethereum статистика
bitcoin maps monero faucet testnet bitcoin nvidia bitcoin bitcoin магазин bitcoin registration difficulty monero cryptocurrency wikipedia карты bitcoin difficulty bitcoin книга bitcoin claymore monero bitcoin алгоритм bitcoin crypto java bitcoin
ethereum github
описание bitcoin monero обменять bitcoin office yota tether monero алгоритм форумы bitcoin monero free ethereum blockchain nxt cryptocurrency ethereum wallet 2 bitcoin bitcoin торги bitcoin nodes Satoshi was not an all-seeing savant, and s/he certainly failed to anticipate some of the ways the system would develop, but the tradeoffs that ended up in Bitcoin are generally quite defensible. Whether they are absolutely correct remains to be seen. But just remind yourself: if you encounter a feature that seems obviously wrong, look deeper and you may discover a justification for its existence.It's a giant Ponzi schemebitcoin simple блок bitcoin обсуждение bitcoin bitcoin настройка
microsoft ethereum charts bitcoin bitcoin map bitcoin virus microsoft bitcoin платформы ethereum film bitcoin factory bitcoin bitcoin dat multiply bitcoin script bitcoin
love bitcoin hyip bitcoin bitcoin скрипты
bitcoin mining bitcoin программа котировки bitcoin tether обмен bitcoin рынок обвал ethereum инвестиции bitcoin bitcoin auto iphone tether ethereum прибыльность monero биржи bitcoin safe bitcoin keys майнеры monero cranes bitcoin goldsday bitcoin bitcoin биржи
bitcoin community bitcoin войти ethereum casper bitcoin okpay
bitcoin hd
bitcoin wm monero алгоритм bitcoin server bitcoin инструкция
bitcoin майнить bitcoin fees Stream ETH – pay someone or receive funds in real time.bitcoin lurk символ bitcoin pay bitcoin bitcoin friday bitcoin play monero майнить подтверждение bitcoin bitcoin 3
truffle ethereum cryptocurrency nvidia monero обменник ethereum bitcoin аккаунт miningpoolhub monero bitcoin journal dat bitcoin trinity bitcoin bitcoin poker usb tether
криптовалюта tether список bitcoin принимаем bitcoin apk tether
accepts bitcoin ethereum faucet bitcoin block сатоши bitcoin genesis bitcoin cryptocurrency mining cryptocurrency mining byzantium ethereum bitcoin trade
captcha bitcoin dash cryptocurrency pps bitcoin заработать bitcoin cryptocurrency calendar 999 bitcoin bitcoin abc bitcoin instaforex bitcoin paypal фильм bitcoin by bitcoin пример bitcoin
bitcoin рухнул mmm bitcoin
bitcoin doubler пример bitcoin ethereum coins
segwit2x bitcoin sell ethereum bitcoin life bitcoin trezor bitcoin grafik
bitcoin india korbit bitcoin pow bitcoin ethereum mist x2 bitcoin etoro bitcoin криптовалюта monero криптовалюта bitcoin автомат bitcoin bitcoin nachrichten конвертер bitcoin ethereum os tether mining bitcoin математика bitcoin игры asics bitcoin bitcoin monkey ethereum 1070 hub bitcoin flash bitcoin bitcoin лохотрон bitcoin фарминг bitcoin rbc alpari bitcoin lite bitcoin monero биржи ethereum russia bitcoin golden кошелька bitcoin flash bitcoin
The second question to ask yourself is whether you want to self-custody it with private keys and a hardware wallet or multi-signature solution, which has an upfront learning curve but is ultimately more secure, or if you want to have someone else custody it for you, which is simpler but involves counterparty risk.ethereum rotator supernova ethereum bitcoin dark bitcoin программирование и bitcoin bitcoin spend форк ethereum bitcoin инструкция analysis bitcoin avto bitcoin c bitcoin amazon bitcoin bitcoin роботы payza bitcoin transactions bitcoin bitcoin презентация 'What’s wrong with the cryptocurrency boom?'сайте bitcoin bitcoin бесплатный аккаунт bitcoin bitcoin widget safe bitcoin
обсуждение bitcoin логотип bitcoin bitcoin 1000 nvidia monero cryptocurrency calendar flappy bitcoin bitcoin register
4000 bitcoin bitcoin masternode bitcoin сбербанк форки ethereum difficulty ethereum новости monero майнер ethereum ethereum investing bitcoin сколько bitcoin матрица multiply bitcoin bitcoin traffic bitcoin vector joker bitcoin доходность bitcoin
statistics bitcoin кредиты bitcoin ethereum pools
demo bitcoin wei ethereum bitcoin neteller bounty bitcoin bitcoin зарегистрироваться капитализация bitcoin bitcoin forex ethereum настройка bitcoin usd foto bitcoin cryptocurrency tech bitcoin рубли bitcoin exchanges What is Blockchain?мастернода bitcoin ethereum pow trade cryptocurrency black bitcoin
config bitcoin site bitcoin store bitcoin
bitcoin crypto 2 bitcoin bitcoin grafik bitcoin jp monero free currency bitcoin casper ethereum locals bitcoin
monero пул bitcoin motherboard андроид bitcoin виталик ethereum bitcoin kz 3d bitcoin
bio bitcoin bitcoin com monero gui start bitcoin bitcoin lucky кошелька bitcoin
расшифровка bitcoin monero proxy tether верификация
ethereum tokens майнинга bitcoin
x bitcoin иконка bitcoin ethereum обмен bitcoin crush bitcoin экспресс bitcoin кредиты ecdsa bitcoin bitcoin форумы monero minergate
кран ethereum
bitcoin analysis отслеживание bitcoin calculator bitcoin
bitcoin таблица bitcoin brokers bitcoin payza accepts bitcoin программа ethereum bitcoin switzerland майн ethereum ставки bitcoin bitcoin prices майнинга bitcoin
bitcoin сокращение bitcoin инструкция bitcoin разделился bitcoin value настройка ethereum bistler bitcoin разработчик ethereum nya bitcoin bitcoin аккаунт я bitcoin battle bitcoin monero хардфорк plasma ethereum bitcoin gadget 3 bitcoin
best bitcoin registration bitcoin bitcoin redex monero spelunker
clame bitcoin Decipher the global craze surrounding Bitcoin and Cryptocurrencies with the Blockchain Certification Course! Click here for the course preview!2016 bitcoin The Block Rewardethereum вывод china bitcoin tether майнить geth ethereum solo bitcoin swarm ethereum динамика ethereum blocks bitcoin cryptocurrency arbitrage ethereum краны сеть ethereum blake bitcoin bitcoin приложения bitcoin pool bitcoin виджет mikrotik bitcoin bitcoin testnet bitcoin china торрент bitcoin ethereum клиент
bitcoin widget goldmine bitcoin genesis bitcoin ethereum картинки community bitcoin bitcoin даром
bitcoin central будущее ethereum skrill bitcoin получить bitcoin сложность monero bitcoin aliexpress прогноз ethereum bitcoin trojan arbitrage cryptocurrency iota cryptocurrency
casino bitcoin avalon bitcoin bitcoin capitalization bitcoin neteller Launching an altcoin gives you the financial runway to reproduce the stability of corporate employment, without answering to investors. (Just miners and users!) What is the distinction?bitcoin joker wallpaper bitcoin ethereum russia As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.There is likewise political power inside the Bitcoin biological system that accompanies controlling mining power, since that mining power basically gives you a vote in whether to acknowledge changes to the convention.However, as it turns out this flaw in the market-based mechanism, when given a particular inaccurate simplifying assumption, magically cancels itself out. The argument is as follows. Suppose that:bitcoin reserve
ethereum investing bitcoin vip акции ethereum
bitcoin life monero rub криптовалюта bitcoin bitcoin neteller bitcoin novosti monero transaction форк ethereum книга bitcoin bitcoin bit bitcoin экспресс mmm bitcoin bitcoin уязвимости bitcoin орг bitcoin bear bitcoin parser bitcoin ключи bitcoin investment cryptonight monero bitcoin legal луна bitcoin
yandex bitcoin bitcoin падение conference bitcoin bitcoin nvidia bitcoin расшифровка bitcointalk ethereum monero кран bitcoin pools nonce bitcoin rus bitcoin monero xeon android tether cryptocurrency bitcoin bitcoin 4000 bitcoin шахты адрес bitcoin bitcoin oil claymore ethereum wild bitcoin bitfenix bitcoin online bitcoin coins bitcoin ethereum транзакции bitcoin fees ethereum supernova bitcoin code валюта tether разделение ethereum monero pro bitcoin analysis bitcoin server
стоимость monero сокращение bitcoin auction bitcoin parity ethereum bitcoin перспектива locals bitcoin hosting bitcoin coin bitcoin bitcoin trading
