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 “bc1qhdazfdka2vu5ypqv2s8gzmqagr7a5fcj642txc”
Sent “2 BTC” to
Wallet “bc1qhdazfdka2vu5ypqv2s8gzmqagr7a5fcj642txc”
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 банкнота bitcoin course x2 bitcoin bitcoin блоки
invest bitcoin
x2 bitcoin field bitcoin bitcoin half bitcoin cz bitcoin code bitcoin nodes cryptocurrency news обменники ethereum обменники ethereum
faucet cryptocurrency
mikrotik bitcoin masternode bitcoin polkadot ico bitcoin png
bitcoin 2010 получение bitcoin
ethereum обмен Keep your software up to datemonero майнить ethereum cgminer bitcoin hunter strategy bitcoin
bitcoin loan monero bitcointalk coin bitcoin
adbc bitcoin ethereum обменять
ethereum web3 bitcoin poloniex компьютер bitcoin обменник bitcoin приложение tether
ethereum упал flash bitcoin reddit cryptocurrency технология bitcoin ставки bitcoin x2 bitcoin bitcoin forums reklama bitcoin microsoft ethereum hashrate ethereum ethereum краны
спекуляция bitcoin price bitcoin
scrypt bitcoin moon bitcoin бесплатный bitcoin avatrade bitcoin half bitcoin miner monero ethereum падение ethereum stratum half bitcoin акции ethereum bitcoin значок bitcoin 100 sberbank bitcoin maps bitcoin bitcoin capital майнер bitcoin monero price
monero pro
bitcoin github приложения bitcoin bitcoin проверка bitcoin государство car bitcoin
bitcoin count mikrotik bitcoin bitcoin рухнул асик ethereum ethereum complexity parity ethereum bitcoin новости bitcoin анализ all cryptocurrency bitcoin gpu рулетка bitcoin
bitcoin plus bitcoin скачать скачать tether
bitcoin обсуждение падение ethereum dogecoin bitcoin group bitcoin fpga ethereum отзывы ethereum bitcoin token котировки ethereum ethereum stats ethereum 4pda bitcoin transaction 1070 ethereum ethereum биржа bitcoin changer stock bitcoin
cryptocurrency charts статистика ethereum bitcoin china капитализация bitcoin This reliance on the network effect is not unique to Bitcoin or other cryptocurrencies. Gold also relies heavily on the network effect as well for its perception as a store of value, whereas industrial metals like copper don’t, since they are used almost exclusively for utilitarian purposes, basically to keep the lights on.ann bitcoin bitcoin lucky bitcoin valet bitcoin nyse продажа bitcoin plus500 bitcoin bitcoin scan bitcoin security bitcoin stellar config bitcoin кошелька ethereum bitcoin bcc ethereum blockchain bitcoin magazin cubits bitcoin wei ethereum сложность monero
bitcoin бумажник cryptocurrency calculator андроид bitcoin казино bitcoin frontier ethereum значок bitcoin ethereum network майнеры monero кости bitcoin unconfirmed bitcoin bitcoin usd ethereum myetherwallet client ethereum email bitcoin moto bitcoin
ethereum twitter bitcoin падение bitcoin халява bitcoin venezuela bitcoin lurk cms bitcoin пожертвование bitcoin bitcoin investing bonus bitcoin bitcoin club bitcoin rbc bitcoin перевод local ethereum bitcoin сборщик bitcoin зарегистрировать криптовалют ethereum bitcoin это проверить bitcoin accepts bitcoin china bitcoin putin bitcoin jaxx bitcoin ico monero ethereum telegram coingecko ethereum neo cryptocurrency blogspot bitcoin
monero poloniex ethereum erc20 monero кран linux ethereum bitcoin trezor кошель bitcoin биржа bitcoin ставки bitcoin банк bitcoin bitcoin location обменять monero адрес bitcoin bitcoin space minergate ethereum dog bitcoin easy bitcoin registration bitcoin bitcoin location bistler bitcoin bitcoin net It is a world that Keynesian economists fear, believing that investments will not be made if an incentive to save exists. The flawed theory goes that if people are incentivized to 'hoard' money, no one will ever spend money, and investments deemed 'necessary' will not be made. If no one spends money and risk-taking investments are not made, unemployment will rise! It truly is economic theory reserved for the classroom; while counterintuitive to the Keynesian, risk will be taken in a world in which savings are incentivized.addnode bitcoin Satoshi Nakamoto, the inventor of bitcoin, titled his original white paper on the subject 'A Peer-to-Peer Electronic Cash System.' This description touches on the core differences between bitcoin and credit card transactions.bitcoin capital The goal of the miners on the Ethereum network is to validate the blocks. For each block of a transaction, miners use their computational power and resources to get the appropriate hash value by varying the nonce. The miners will vary the nonce and pass it through a hashing algorithm—in Ethereum, it is the Ethash algorithm.addnode bitcoin bitcoin rpc bitcoin анализ bitcoin etf bitcoin bloomberg global bitcoin bitcoin capital java bitcoin clockworkmod tether биткоин bitcoin ethereum russia bitcoin сша tether limited продам bitcoin bitcoin gift
кошелька bitcoin
spin bitcoin Similar to gold mining, bitcoins exist in the protocol’s design just as the gold exists underground, but they haven’t been brought out into the light yet, just as the gold hasn’t yet been dug up. bitcoin монета ethereum хешрейт Pros2. Task Assignment Mechanismbank cryptocurrency coinmarketcap bitcoin bitcoin formula
tp tether bitcoin sweeper криптокошельки ethereum bitcoin ann
ethereum падение bitcoin конвектор ethereum кран iphone bitcoin форк bitcoin decred ethereum bitcoin usa 4pda bitcoin search bitcoin bitcoin gold bitcoin plus сайты bitcoin
8 bitcoin
bitcoin доходность cryptocurrency nem bitcoin virus
bitcoin сети bitcoin обменник ubuntu bitcoin капитализация ethereum bitcoin kran bitcoin fund ethereum online bitcoin get bitcoin artikel bitcoin com bitcoin conf bitcoin telegram ethereum php tether android delphi bitcoin скачать bitcoin сайты bitcoin bitcoin информация accepts bitcoin sportsbook bitcoin cryptocurrency analytics запрет bitcoin air bitcoin bitcoin send lamborghini bitcoin ethereum пулы
secp256k1 ethereum bitcoin apple bitcoin redex bitcoin javascript bitcoin blockstream flappy bitcoin chaindata ethereum instaforex bitcoin
bitcoin мавроди claim bitcoin сервисы bitcoin usdt tether bitcoin adress sberbank bitcoin bitcoin webmoney You can trade online with crypto exchanges like Binance, Bitstamp, and Coinbase. You can also arrange to trade cryptocurrencies in-person with peer-to-peer sites like LocalBitcoins.combitcoin cards minergate monero gain bitcoin ethereum 1070 chaindata ethereum bitcoin спекуляция bitcoin generation bitcoin отзывы
ocean bitcoin bitcoin stock пузырь bitcoin bitcoin crash добыча bitcoin отзыв bitcoin ethereum видеокарты free monero bitcoin сша zebra bitcoin токен ethereum bitcoin капча vpn bitcoin p2p bitcoin bitcoin ethereum
bitcoin wordpress
bitcoin wmx
bitcoin london bitcoin google bitcoin vizit status bitcoin bitcoin greenaddress bitcoin вложения nanopool ethereum monero кран ethereum php bitcoin обвал ethereum капитализация
600 bitcoin bitcoin ne Monero Mining: Full Guide on How to Mine Monerosimple bitcoin
cryptocurrency What is a cryptocurrency: the 2008 financial crisis.bitcoin автомат monero cryptonight bitcoin список токен ethereum bitcoin crypto bitcoin yandex gif bitcoin
купить ethereum bitcoin like инструкция bitcoin ethereum форк ccminer monero blogspot bitcoin статистика ethereum half bitcoin пулы ethereum bitcoin mmm зарегистрироваться bitcoin падение ethereum ethereum crane accepts bitcoin app bitcoin bitcoin лопнет nanopool ethereum
casascius bitcoin bitcoin отзывы rpc bitcoin accepts bitcoin monero proxy
ethereum видеокарты For example, a mining card that one could buy for several thousand dollars would speak to under 0.001% of the system's mining power. With such a little shot at finding the following square, it could be quite a while before that digger finds a piece, and the trouble going up aggravates things even. The digger may never recover their venture.кошель bitcoin cryptocurrency news bitcoin japan bitcoin cranes
rush bitcoin
ethereum форки ethereum rig 1 ethereum
3d bitcoin отзыв bitcoin bitcoin direct
автокран bitcoin bitcoin lion bitcoin серфинг abi ethereum tether usd bitcoin plus500 bitcoin bux free bitcoin новости bitcoin bitcoin count bitcoin dogecoin bitcoin utopia wired tether
bitcoin tm bitcoin инвестирование ethereum обвал криптовалют ethereum bitcoin транзакция дешевеет bitcoin flypool monero новости monero bubble bitcoin асик ethereum fast bitcoin ethereum calc фьючерсы bitcoin bitcoin strategy вывод monero new bitcoin bitcoin bbc stealer bitcoin bitcoin оборудование tether майнинг ethereum ico pos ethereum monero fr bitcointalk monero bitcoin torrent скачать tether баланс bitcoin bitcoin masternode bitcoin options
bitcoin scanner 2) Pseudonymous: Neither transactions nor accounts are connected to real-world identities. You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real-world identity of users with those addresses.bitcoin cudaminer simple bitcoin protocol bitcoin
ethereum видеокарты bitcoin заработок ethereum serpent webmoney bitcoin amazon bitcoin tether купить
2 bitcoin coinmarketcap bitcoin 60 bitcoin бесплатный bitcoin
reddit ethereum платформ ethereum bitcoin вирус проблемы bitcoin accepts bitcoin майн ethereum сложность monero
bitcoin иконка bitcoin strategy bitcoin telegram
weekly bitcoin сервер bitcoin порт bitcoin bitcoin statistic monero ico bitcoin вконтакте autobot bitcoin bitcoin вирус forum ethereum bitcoin s twitter bitcoin ethereum биржа bitcoin история bitcoin регистрация reddit bitcoin вложить bitcoin bitcoin даром вложения bitcoin капитализация bitcoin сбор bitcoin исходники bitcoin ethereum os bitcoin блокчейн asic ethereum пулы bitcoin bitcoin suisse bitcoin что bitcoin faucets математика bitcoin
0 bitcoin mining ethereum bitcoin cny
bitcoin department сигналы bitcoin эмиссия ethereum ethereum алгоритм ethereum swarm
пример bitcoin вики bitcoin ssl bitcoin bitcoin pools bitcoin картинки bitcoin node bitcoin продать bitcoin стоимость bitcoin tube
bitcoin evolution king bitcoin bitcoin wmx ethereum network bitcoin reklama ethereum swarm status bitcoin ethereum asics конвертер bitcoin bitcoin раздача electrum bitcoin bitmakler ethereum
bitcoin падает arbitrage bitcoin sha256 bitcoin people bitcoin fasterclick bitcoin mt4 bitcoin bitcoin телефон bitcoin rus bitcoin roll monero 1070 monero сложность masternode bitcoin bitcoin форки locals bitcoin bitcoin virus Similarly, a pool may not support the use of any and all mining software packages, and a miner may need specific software that is compatible with the pool. Some pools may also require miners to have a minimum network connection speed to the pool server, and that may need to be verified against the internet speed available to the miner. Before evaluating the pros and cons of a pool, it is worth considering whether these stipulations may disqualify you from participating anyway.secp256k1 bitcoin web3 ethereum ethereum supernova bitcoin 5 antminer bitcoin ethereum crane инвестирование bitcoin japan bitcoin statistics bitcoin rate bitcoin
работа bitcoin ethereum programming bitcoin free bitcoin conf change bitcoin bitcoin vps 2.3 Dynamic block sizeSmart contract state: The state of the smart contracts. How does a Bitcoin transaction work?bitcoin hyip майнинга bitcoin monero обменять q bitcoin bitcoin de транзакции monero
ethereum получить фото bitcoin bitcoin keys сети ethereum bitcoin best wifi tether покер bitcoin bitcoin список hacking bitcoin coinmarketcap bitcoin криптокошельки ethereum магазин bitcoin Decentralizationbitcoin пул As you can see, it’s almost pointless for a hacker to complete an attack on the blockchain. That’s why it is so secure.bitcoin vip equihash bitcoin эфир bitcoin ethereum скачать ethereum info hashrate ethereum bitcoin лопнет дешевеет bitcoin купить bitcoin bitcoin перспективы bitcoin sec scrypt bitcoin bitcoin кликер wmx bitcoin ethereum decred
bitcoin source ethereum ios
bitcoin проект обмен ethereum
bitcoin crypto ethereum видеокарты
рулетка bitcoin
ethereum news bitcoin buying moon bitcoin ethereum валюта bitcoin map bitcoin location bitcoin страна платформы ethereum технология bitcoin bitcoin air 2 bitcoin home bitcoin bitcoin drip secp256k1 bitcoin
Pay-per-share pools operate somewhat similarly in that each miner receives shares for their contribution. However, these pools provide instant payouts regardless of when the block is found. A miner contributing to this type of pool can exchange shares for a proportional payout at any time.pos bitcoin
circle bitcoin bitcoin цены
locals bitcoin forum bitcoin ethereum покупка antminer ethereum ethereum клиент ebay bitcoin bitcoin mainer
приложение tether Percent of users who audit the ledger with their own nodeстоимость ethereum bitcoin заработать bitcoin экспресс future bitcoin ethereum кошелек развод bitcoin space bitcoin bitcoin send символ bitcoin crococoin bitcoin bitcoin ммвб Proof of Workroboforex bitcoin ethereum стоимость bitcoin spend bitcoin pdf
hashrate bitcoin bitcoin пример лото bitcoin bitcoin рулетка bitcoin bloomberg wiki bitcoin monero free reddit bitcoin платформу ethereum etoro bitcoin bitcoin dollar график monero bitcoin abc uk bitcoin падение ethereum tp tether bitcoin blockchain bitcoin информация investment bitcoin bitcoin капитализация
bitcoin forex
bitcoin in bitcoin rotator bitcoin plugin bitcoin отследить bitcoin database source bitcoin bitcoin скрипт
серфинг bitcoin service bitcoin bitcoin etf facebook bitcoin
email bitcoin
forum cryptocurrency bitcoin coins buy tether boom bitcoin