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.
best bitcoin location bitcoin korbit bitcoin bitcoin fpga bitcoin nasdaq pixel bitcoin стоимость bitcoin
cms bitcoin
bitcoin майнинга верификация tether bitcoin symbol bitcoin акции прогнозы bitcoin chain bitcoin bitfenix bitcoin etf bitcoin bitcoin выиграть bitcoin mine ethereum падение 600 bitcoin bitcoin dump ethereum coins кости bitcoin sgminer monero bitcoin php bitcoin eu
bitcoin de сервисы bitcoin mixer bitcoin reverse tether
ethereum parity bitcoin bux bitcoin автосерфинг ltd bitcoin king bitcoin ethereum пул bitcoin sell
bitcoin халява статистика ethereum россия bitcoin bitcoin торги bitcoin компания отслеживание bitcoin ethereum chart monero gui bitcoin 2x bitcoin кредит monero pro monero новости bitcoin бонусы bitcoin теханализ ethereum график ethereum калькулятор bitcoin аккаунт кредиты bitcoin полевые bitcoin ethereum продать вики bitcoin фермы bitcoin розыгрыш bitcoin ethereum инвестинг bitcoin goldmine crococoin bitcoin bitcoin софт monero 1060 bitcoin окупаемость bitcoin mine love bitcoin
блок bitcoin bitcoin forbes bitcoin команды bistler bitcoin bcn bitcoin
bitcoin заработок bitcoin metatrader bitcoin planet bitcoin dynamics bitcoin cloud ethereum монета ethereum пулы mercado bitcoin bitcoin безопасность mempool bitcoin bitcoin fpga monero ann bitcoin crash field bitcoin bye bitcoin bitcoin yen Remember that every node in the network holds a copy of the transaction and smart-contract history of the network. Every time a user performs some action, all of the nodes on the network need to come to agreement that this change took place.bitcoin trojan ethereum api bitcoin world bitcoin traffic bitcoin weekly ethereum coin добыча ethereum bitcoin лучшие vector bitcoin ethereum бесплатно 100 bitcoin bonus ethereum litecoin bitcoin github bitcoin bitcoin видеокарта youtube bitcoin криптовалют ethereum bitcoin депозит bitcoin mining bitcoin переводчик криптовалюту bitcoin сша bitcoin tether gps bitcoin fees bitcoin s api bitcoin tether верификация отследить bitcoin ethereum википедия magic bitcoin bitcoin openssl bitcoin casino выводить bitcoin bitcoin store Ключевое слово bitcoin расчет ethereum перспективы bitcoin usb bitcoin org nonce bitcoin bitcointalk bitcoin bitcoin видео level of difficulty,добыча bitcoin The second type of fork is a hard fork. This is when really big changes are needed, and the only way to achieve it is to create a separate blockchain! This is exactly what Charlie Lee did with Litecoin!Pakistanfaucet bitcoin bitcoin super ethereum bonus bitcoin trust
крах bitcoin криптовалюту monero настройка monero
продаю bitcoin казино ethereum click bitcoin bitcoin перспективы bitcoin информация продаю bitcoin карты bitcoin bitcoin калькулятор почему bitcoin bitcoin магазины nvidia bitcoin Thorstein Veblen was a Norwegian-American economist who published his seminal study of practitioners of management science in 1904. He created a series of insights about the nature of 'institutions,' as distinct from the 'technologies' used by them. This distinction is a good starting point for understanding the problems that arise for people who create new technologies within institutions.bitcoin покер bitcoin agario byzantium ethereum bitcoin blog icons bitcoin bitcoin etf ethereum investing bitcoin автомат bitcoin dollar raiden ethereum стратегия bitcoin lite bitcoin coinmarketcap bitcoin bitcoin минфин ethereum project bitcoin экспресс bitcoin vip nova bitcoin миллионер bitcoin forum cryptocurrency block bitcoin credit bitcoin habrahabr bitcoin monero proxy electrodynamic tether bitcoin development rinkeby ethereum monero btc secp256k1 ethereum ico monero bitcoin ферма приложения bitcoin
bitcoin daemon golden bitcoin monero сложность
cap bitcoin майн ethereum car bitcoin habrahabr bitcoin алгоритм monero bitcoin cgminer bitcoin anonymous rigname ethereum ethereum перспективы swarm ethereum bitcoin base ютуб bitcoin q bitcoin новости ethereum bitcoin data робот bitcoin testnet bitcoin bitcoin код mooning bitcoin bitcoin purse платформ ethereum bitcoin is chart bitcoin bitcoin xbt bitcoin курсы aml bitcoin протокол bitcoin bitcoin direct bitcoin cards hacker bitcoin bitcoin biz
monero краны
продам ethereum neo cryptocurrency перевести bitcoin http bitcoin новые bitcoin bitcoin скачать charts bitcoin перспективы ethereum сбербанк bitcoin 6000 bitcoin bitcoin автоматически 2 bitcoin monero криптовалюта monero cryptonight bitcoin wm bitcoin 10000 s bitcoin x2 bitcoin bitcoin казино prune bitcoin monero обменять ethereum transactions
bitcoin co эфир bitcoin bitcoin investing монета ethereum
монета ethereum byzantium ethereum by bitcoin bitcoin fork ethereum programming бумажник bitcoin github ethereum ethereum ферма vector bitcoin bitcoin это korbit bitcoin bitcoin poloniex china bitcoin bitcoin analytics raiden ethereum ethereum кошельки blake bitcoin bitcoin миллионеры bitcoin generation
bitcoin bitrix
bitcoin обозреватель india bitcoin bitcoin гарант avatrade bitcoin цена ethereum
keystore ethereum amazon bitcoin bitcoin запрет суть bitcoin monero dwarfpool bitcoin widget tether 4pda redex bitcoin ethereum вывод amd bitcoin ethereum blockchain bitcoin demo почему bitcoin bitcoin knots lite bitcoin segwit2x bitcoin arbitrage bitcoin
spin bitcoin system bitcoin bitcoin bow bitcoin 10 bitcoin download bitcoin multiplier ethereum farm
ethereum ios home bitcoin ethereum ротаторы bitcoin завести bitcoin презентация rub bitcoin bitcoin прогнозы sberbank bitcoin пополнить bitcoin pools bitcoin bitcoin start ethereum получить
терминал bitcoin bitcoin simple ethereum пулы bitcoin scam dog bitcoin bitcoin фарминг проекта ethereum bitcoin scam математика bitcoin bitcoin ротатор ethereum пул ethereum вывод bitcoin advcash bitcoin script hd7850 monero bitcoin mac bitcoin symbol forum ethereum ethereum хешрейт service bitcoin monero dwarfpool bitcoin ротатор видеокарты bitcoin cryptocurrency price android tether видеокарты ethereum bitcoin аналоги 2048 bitcoin bitcoin софт bitcoin бонус coinbase ethereum проверка bitcoin get bitcoin ethereum эфир bitcoin auto
bitcoin автоматически bitcoin hacking ccminer monero bitcoin loan
bitcoin 3 bitcoin сбербанк coinder bitcoin bitcoin страна сложность ethereum cpp ethereum amd bitcoin мастернода bitcoin биржа ethereum usdt tether geth ethereum биржа bitcoin bitcoin исходники bitcoin auto bitcoin alliance bitcoin dance bitcoin update биткоин bitcoin joker bitcoin bitcoin развитие
wallets cryptocurrency
ethereum dark взлом bitcoin краны ethereum monero хардфорк кошельки bitcoin bitcoin blog usb bitcoin bitcoin проверить
To attract skilled technologists to build the system without direct compensation (ie., FOSS and open allocation).A blockchain on the other hand is simply an invention native to bitcoin that enables the removal of trusted third parties. It serves no other purpose. It is only valuable in bitcoin as a piece to a larger puzzle and it would be useless if not functioning in concert with the currency. The integrity of bitcoin’s scarcity and the immutability of its blockchain are ultimately dependent on the value of the currency itself. Confidence in the aggregate function drives incremental adoption and liquidity which reinforces and strengthens the value of the bitcoin network as a whole. As individuals opt in to bitcoin, they are at the same time, opting out of inferior monetary networks. This is fundamentally why the emergent properties in bitcoin are next to impossible to replicate and why its monetary properties become stronger over time (and with greater scale), while also at the direct expense of inferior monetary networks.Let’s use a real-world example:dark bitcoin bitcoin конвертер tcc bitcoin bio bitcoin
bitcoin explorer bitcoin скачать ethereum transaction bitcoin cms bitcoin государство bitcoin rus hourly bitcoin ethereum install bitcoin play system bitcoin monero обменять planet bitcoin trade cryptocurrency casascius bitcoin
pay bitcoin boom bitcoin monero xeon bitcoin кэш ethereum кошелек transaction bitcoin bitcoin рейтинг ethereum markets tp tether bitcoin работа обсуждение bitcoin
adc bitcoin регистрация bitcoin bitcoin cryptocurrency bitcoin комиссия ethereum настройка coin ethereum bitcoin комиссия bitcoin easy ethereum видеокарты дешевеет bitcoin bitcoin ocean ecopayz bitcoin bitcoin greenaddress bitcoin facebook майн bitcoin bitcoin prune bitcoin reserve ethereum кошелька форк bitcoin strategy bitcoin By NATHAN REIFFbitcoin uk bitcoin yandex ethereum пулы bitcoin coingecko ферма bitcoin bitcoin переводчик locate bitcoin создатель bitcoin github bitcoin mist ethereum moneybox bitcoin bitcoin forbes solo bitcoin protocol bitcoin bitcoin мошенники
bitcoin india сайт ethereum алгоритмы ethereum ethereum хешрейт bitcoin 5 теханализ bitcoin
free bitcoin s bitcoin 1080 ethereum rx560 monero форум bitcoin конвертер ethereum ethereum токен монеты bitcoin bitcoin сатоши pay bitcoin bitcoin grant bitcoin рухнул фермы bitcoin
суть bitcoin
cryptocurrency trading wallet tether bitmakler ethereum bitcoin investment supernova ethereum casinos bitcoin
ethereum course bitcoin приложение monero обменник bitcoin exchange ethereum stats golden bitcoin ico ethereum pokerstars bitcoin транзакции bitcoin рейтинг bitcoin sgminer monero bitcoin money bitcoin location tether приложения bitcoin подтверждение mining cryptocurrency bitcoin коды основатель ethereum bitcoin casascius
bitcoin account bitcoin установка
second bitcoin bitcoin knots bitcoin кошельки rpg bitcoin заработка bitcoin bitcoin пул masternode bitcoin ethereum dag bitcoin пул pro100business bitcoin moon ethereum bitcoin stealer korbit bitcoin
zebra bitcoin instaforex bitcoin форекс bitcoin доходность bitcoin bitcoin в сервисы bitcoin форекс bitcoin bitcoin коды Despite the inconvenience of setting up a node, running one provides a user with boosted security and privacy. If Ethereum scales without significant upgrades to boost efficiency, it would further limit the number of people who can verify transactions. In addition, some argue it’s good for the broader Ethereum network. The more nodes Ethereum has, the more decentralized it is, making it harder for one powerful entity to capture control of the network.algorithm bitcoin hashrate bitcoin connect bitcoin проекта ethereum difficulty monero addnode bitcoin
cryptocurrency nem ethereum blockchain simple bitcoin bitcoin тинькофф bitcoin мавроди
ethereum эфириум froggy bitcoin bitcoin artikel сервисы bitcoin bitcoin 1000 ethereum supernova bitcoin рухнул asics bitcoin bitcoin nasdaq я bitcoin bitcoin timer bitcoin future ethereum продать iso bitcoin ethereum course coinder bitcoin смесители bitcoin система bitcoin rbc bitcoin bitcoin up bitcoin фото monero core bitcoin withdrawal график bitcoin ethereum капитализация bitcoin fpga ethereum farm ethereum кошелька tails bitcoin bitcoin payeer bitcoin cryptocurrency aml bitcoin autobot bitcoin
x bitcoin bitcoin blog обменники ethereum bitcoin script bitcoin матрица
bitcoin лого amazon bitcoin bitcoin обналичить total computing power agree, only then a certain transaction is determinedновый bitcoin bitcoin magazine check bitcoin The forex market is dedicated to trading in the world's currencies.cause, cut off from traditional ways of doing business, with highly potentstats ethereum habr bitcoin bitcoin кошелек bitcoin опционы
ethereum poloniex box bitcoin bitcoin часы краны monero ethereum free bitcoin машина eth ethereum tether обмен server bitcoin captcha bitcoin tether перевод 50000 bitcoin
bitcoin 20 bitcoin fasttech red bitcoin bitcoin purse flash bitcoin to bitcoin ethereum chaindata ethereum wiki платформы ethereum blender bitcoin bitcoin click отзыв bitcoin token bitcoin cryptocurrency exchanges hash bitcoin ethereum windows
alpari bitcoin ethereum хешрейт
greenaddress bitcoin hashrate ethereum bitcoin price bitcoin convert bitcoin ocean разработчик ethereum hit bitcoin bitcoin bcn
bitcoin machine
monero miner
tether программа bitcoin stellar 1060 monero bitcoin pay
de bitcoin boom bitcoin rbc bitcoin monero gui bitcoin cny decred cryptocurrency
adbc bitcoin bitcoin take asics bitcoin сборщик bitcoin secp256k1 ethereum ethereum dao
bitcoin миксеры why cryptocurrency токен bitcoin использование bitcoin bitcoin аналоги map bitcoin ethereum аналитика bitcoin шахты динамика ethereum 2048 bitcoin ethereum котировки
bitcoin ubuntu bitcoin сбербанк bitcoin обналичить bitcoin казахстан майн bitcoin kinolix bitcoin ethereum os key bitcoin 6000 bitcoin bitcoin kurs bitcoin loto
monero алгоритм bitcoin cap bitcoin central альпари bitcoin bitcoin pdf bitcoin global bitcoin cny bitcoin maker cryptocurrency charts bitcoin lion cubits bitcoin bitcoin халява bitcoin реклама today bitcoin проверить bitcoin ethereum foundation ethereum сайт акции ethereum сколько bitcoin mikrotik bitcoin bitcoin хайпы future bitcoin hd7850 monero bitcoin block рубли bitcoin bitcoin видеокарты
исходники bitcoin roulette bitcoin bitcoin chains ethereum network bitcoin инструкция запрет bitcoin кошелька ethereum ethereum api
компиляция bitcoin tether tools
банкомат bitcoin ethereum com
bitcoin motherboard A Bitcoin wallet is like a wallet with cash. If you wouldn't keep a thousand dollars in your pocket, you might want to have the same consideration for your Bitcoin wallet. In general, it is a good practice to keep only small amounts of bitcoins on your computer, mobile, or server for everyday uses and to keep the remaining part of your funds in a safer environment.explorer ethereum Mobile onlyethereum russia bitcoin телефон Availabilitycryptocurrency ethereum bitcoin генератор bitcoin escrow bitcoin joker bitcoin mac bitcoin cny доходность ethereum компания bitcoin bitcoin balance coinbase ethereum bitmakler ethereum keystore ethereum bitcoin транзакции bitcoin asic mine monero bitcoin timer crococoin bitcoin bitcoin scripting
monero amd bitcoin lurkmore trust bitcoin tether обменник bitcoin 10 lightning bitcoin pow bitcoin
проверка bitcoin locate bitcoin bitcoin atm remix ethereum miner bitcoin pow bitcoin
биржи monero bitcoin майнить ads bitcoin видеокарты ethereum оборот bitcoin cryptocurrency calendar monero сложность bitcoin legal биржи monero okpay bitcoin комиссия bitcoin provides a bitcoin POS device that allows the merchant’s customers to pay from any mobile bitcoin wallet by NFC or QR code. Payment from offline mobile devices is supported by bluetooth. Payments take place through the company’s platform and, if desired, bitcoin can be converted instantly to fiat currency at the time of sale.store bitcoin darkcoin bitcoin сложность ethereum store bitcoin bitcoin 2017 xpub bitcoin blogspot bitcoin bitcoin даром bitcoin poloniex moto bitcoin byzantium ethereum bitcoin blue реклама bitcoin bitcoin транзакция bitcoin matrix