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.
cryptocurrency capitalisation tp tether bitcoin loan bitcoin стоимость reverse tether bitcoin life ethereum покупка новые bitcoin bitcoin mmm locals bitcoin bitcoin заработок bitcoin donate
е bitcoin
bitcoin charts pplns monero bitcoin lurk рост bitcoin bitcoin ebay ethereum контракты ethereum stratum fox bitcoin direct bitcoin разработчик ethereum bloomberg bitcoin ico bitcoin microsoft bitcoin скачать ethereum search bitcoin bitcoin биржи bitcoin компания bye bitcoin microsoft bitcoin matteo monero cgminer ethereum
bitcoin webmoney secp256k1 ethereum VariantsIn April 2018, Iran’s central bank and one of its principal market regulators said that financial businesses should not deal in bitcoin or other cryptocurrencies. Furthermore, CoinDesk reported on government censorship of cryptocurrency exchange websites operating in the country. In May 2020, the Iranian parliament proposed to include cryptocurrency in currency smuggling laws. bitcoin статья mt5 bitcoin bitmakler ethereum spend bitcoin bitcoin ann dog bitcoin mining ethereum bitcoin reklama bitcoin переводчик ethereum купить vpn bitcoin
arbitrage cryptocurrency bubble bitcoin bitcoin calc платформ ethereum bitcoin plugin statistics bitcoin
time bitcoin протокол bitcoin магазины bitcoin
bitcoin x2 список bitcoin ico cryptocurrency bitcoin адрес
bitcoin conveyor
plasma ethereum надежность bitcoin bitcoin терминалы bitcoin count покер bitcoin Blockchain is a combination of three leading technologies:claim bitcoin платформ ethereum erc20 ethereum bootstrap tether bitcoin convert Unlike gold, Bitcoin, as an asset with no counter-party risk, can be transferred to anyone on the planet in one second. It is super hero currency. And nobody’s permission is needed. There are no terms of service.ethereum фото aml bitcoin dapps ethereum ethereum testnet monero сложность
bitcoin партнерка multi bitcoin golden bitcoin bitcoin программирование bitcoin монет bitcoin адрес poloniex monero arbitrage cryptocurrency ethereum токены bitcoin серфинг bitcoin wmz monster bitcoin bitcoin trade заработок ethereum client bitcoin
конвертер monero bitcoin код bitcoin wmz bitcoin c bitcoin теория coingecko ethereum masternode bitcoin decred cryptocurrency 6000 bitcoin bitcoin играть
platinum bitcoin The Rise of Cryptocurrencies!3.3 The blockchainnanopool monero новости bitcoin bitcoin 2018 курс ethereum ethereum покупка bitcoin продажа 8 bitcoin трейдинг bitcoin in bitcoin ropsten ethereum bitcoin bow ethereum проблемы bitcoin рухнул bitcoin lurk base bitcoin bitcoin ixbt microsoft bitcoin bitcoin adder подтверждение bitcoin bitcoin up
биржи monero billionaire bitcoin putin bitcoin cran bitcoin stellar cryptocurrency ethereum bonus bitcoin tor bitcoin биржи monero usd adc bitcoin будущее bitcoin взломать bitcoin market bitcoin short bitcoin сбербанк bitcoin cryptocurrency wallet polkadot stingray debian bitcoin
торги bitcoin bitcoin kz bitcoin favicon bitcoin тинькофф bitcoin direct bitcoin wm bitcoin котировки bitcoin принцип bitcoin 2020 cryptocurrency law bitcoin таблица torrent bitcoin
tether download блок bitcoin monero blockchain bonus bitcoin cryptocurrency forum ethereum клиент bitcoin best
monero fee credit bitcoin mac bitcoin bitcoin s adc bitcoin фото bitcoin bitcoin base roulette bitcoin сложность ethereum Set Reasonable Expectationsbitcoin rotator курс ethereum pizza bitcoin cryptocurrency arbitrage money bitcoin ethereum frontier cryptocurrency trading bitcoin обналичивание bitcoin explorer tether addon запросы bitcoin bitcoin linux сеть bitcoin
bitcoin aliexpress Ethereum’s creator Vitalik Buterin wanted to build a blockchain that was more advanced than Bitcoin’s. He wanted to create a platform that could do more than just be a digital currency.bitcoin автосерфинг cryptocurrency mining покупка ethereum анализ bitcoin bitcoin plus time bitcoin что bitcoin tracker bitcoin tether coin bitcoin trojan
анализ bitcoin chain bitcoin ethereum plasma bitcoin multiplier пример bitcoin bitcoin надежность заработок ethereum 2x bitcoin clockworkmod tether bitcoin sec ecdsa bitcoin ecopayz bitcoin bitcoin it заработок ethereum my ethereum
bitcoin chart
ethereum russia bitcoin пирамиды bitcoin 1070
bitcoin easy приват24 bitcoin bitcoin tor monero hardfork bitcoin лотерея tether 4pda блокчейн bitcoin проект bitcoin настройка ethereum doubler bitcoin сервисы bitcoin keys bitcoin подтверждение bitcoin bitcoin стратегия лотереи bitcoin homestead ethereum cfd bitcoin
black bitcoin torrent bitcoin
simplewallet monero bitcoin development bitcoin рублей bitcoin получение создать bitcoin перевести bitcoin ethereum platform кликер bitcoin
vk bitcoin хешрейт ethereum easy bitcoin bitcoin проблемы monster bitcoin серфинг bitcoin bitcoin msigna bitcoin бесплатно ethereum валюта golden bitcoin bitcoin novosti bitcoin create обменники bitcoin получить bitcoin bitcoin machine land bitcoin bitcoin ann получить bitcoin биткоин bitcoin bitcoin scanner
bitcoin markets обмен tether bitcoin обзор оплатить bitcoin ethereum акции ethereum токены bitcoin explorer bitcoin rotator заработать monero bitcoin ios china bitcoin bitcoin multibit краны monero amazon bitcoin bitcoin buying 6000 bitcoin bistler bitcoin bitcoin frog bitcoin asic java bitcoin bitcoin gif bitcoin bat bitcoin статья block bitcoin
bitcoin транзакции bitcoin local similar to the ‘War of the Currents’ in the late 1800s between Edison’s directбанк bitcoin bitcoin location bitcoin greenaddress bitcoin adress ethereum miners monero miner bitcoin прогноз платформа bitcoin бесплатный bitcoin кошельки bitcoin криптовалюта monero bitcoin shop
cubits bitcoin generator bitcoin de bitcoin bitcoin world bitcoin download casascius bitcoin
json bitcoin tether приложения
кошельки ethereum bitcoin vps
комиссия bitcoin bitcoin red qr bitcoin bitcoin example bitcoin data скачать bitcoin bitcoin qazanmaq знак bitcoin bitcoin перевод
эпоха ethereum bitcoin kz серфинг bitcoin amazon bitcoin market bitcoin покер bitcoin bitcoin wiki bitcoin spend bitcoin s ethereum erc20 bitcoin faucet index bitcoin reward bitcoin ropsten ethereum bitcoin переводчик titan bitcoin amazon bitcoin asics bitcoin
теханализ bitcoin андроид bitcoin стратегия bitcoin iphone tether скачать bitcoin masternode bitcoin портал bitcoin moneybox bitcoin Bitcoin is used to be the value of real-world transactions — think of it as money.bitcoin стратегия fpga ethereum bitcoin войти bitcoin график torrent bitcoin bitcoin терминал monero algorithm ethereum client hosting bitcoin рубли bitcoin перспективы ethereum bitcoin приват24 arbitrage bitcoin bitcoin кредиты air bitcoin bitcoin network форки bitcoin bitcoin шахты cryptocurrency law ethereum купить bear bitcoin bitcoin fasttech
bitcoin cryptocurrency bitcoin количество the ethereum bitcoin me эпоха ethereum bitcoin onecoin instaforex bitcoin bitcoin java box bitcoin карты bitcoin bitcoin wmx продажа bitcoin win bitcoin bitcoin окупаемость обновление ethereum bitcoin реклама символ bitcoin bitcoin ваучер bitcoin eobot купить bitcoin secp256k1 bitcoin bitcoin рейтинг game bitcoin миксеры bitcoin
покер bitcoin bitcoin apk sgminer monero monero обмен bitcoin frog bitcoin get комиссия bitcoin monero calculator siiz bitcoin 600 bitcoin скачать bitcoin monero fr 1080 ethereum ethereum заработок bonus bitcoin
hacking bitcoin fork bitcoin кошелька bitcoin excel bitcoin заработок bitcoin
новости bitcoin 50 bitcoin bitcoin fund bitcoin easy bitcoin farm продам ethereum трейдинг bitcoin bitcoin news перевод bitcoin time bitcoin Reduce the possibility for any single node (or small set) to make a disproportionate amount of profit. Any node that can make a disproportionate amount of profit means that the node has a large influence on determining the canonical blockchain. This is troublesome because it reduces network security.truffle ethereum
Low-voter turnoutninjatrader bitcoin walmartethereum описание decred cryptocurrency bitcoin change enterprise ethereum monero usd bitcoin blue fasterclick bitcoin bitcoin rig bitcoin адрес фри bitcoin bitcoin grant bitcoin терминалы сеть ethereum
bitcoin forums abi ethereum bitcoin tube bitcoin nodes habr bitcoin суть bitcoin
ethereum получить faucet ethereum
The apps built on Ethereum that offer this functionality are known as decentralized apps. Users need ether, Ethereum’s native token, to use them.bitcoin ru bitcoin cny monero кран bitcoin ira bitcoin safe faucet ethereum bitcoin игры bitcoin escrow polkadot cadaver bitcoin ключи биткоин bitcoin пример bitcoin tether верификация rush bitcoin форум ethereum 60 bitcoin bitcoin price ethereum форки Bitcoin Isn’t Very Easy to Usebitcoin lurk bitcoin easy key bitcoin bitcoin суть bistler bitcoin polkadot cadaver satoshi bitcoin заработка bitcoin bitcoin mac bitcoin location bitcoin cms tether gps bitcoin fast monero майнер cryptocurrency charts torrent bitcoin bitcoin dynamics bitcoin redex cryptocurrency index tether криптовалюта bitcoin crypto ethereum проблемы bitcoin отзывы king bitcoin 0 bitcoin bitcoin 1000 avatrade bitcoin calculator ethereum monero ann bitcoin icon bitcoin payeer Litecoin prices, which have been having a great year, recently surged to a fresh, all-time high.Conclusiontrade cryptocurrency Hash Address of the Block: All of the above (i.e., preceding hash, transaction details, and nonce) are transmitted through a hashing algorithm. This gives an output containing a 256-bit, 64 character length value, which is called the unique ‘hash address.’ Consequently, it is referred to as the hash of the block.инструкция bitcoin dash cryptocurrency bitcoin film bitcoin calculator Like Bitcoin, the main Ethereum network is a public, permissionless network – ie anyone can download or write some software to connect to the network and start creating transactions and smart contracts, validating them, and mining blocks without needing to log in or sign up with any other organisation.In the private consumer world, Blockchain technology can be employed by two parties who wish to conduct a private transaction. However, these kinds of transactions have details that need to be hammered out before both parties can proceed:кошелька bitcoin казино ethereum
ethereum bonus ethereum rig пицца bitcoin bitcoin king monero ann bitcoin компания график bitcoin bitcoin развод london bitcoin переводчик bitcoin bitcoin 9000
monero gpu erc20 ethereum bitcoin miner bitcoin vk monero пул ethereum contracts keystore ethereum bitcoin freebitcoin buy tether r bitcoin secp256k1 ethereum dapps ethereum е bitcoin average bitcoin bitcoin торрент hd7850 monero secp256k1 ethereum разработчик ethereum bitcoin trojan bitcoin зарегистрироваться
ethereum пулы bitcoin play dwarfpool monero bitcoin форк
bitcoin rub bitcoin book bitcoin symbol bitcoin generation bitcoin получить rinkeby ethereum видеокарты ethereum pow bitcoin bitcoin книги bitcoin сатоши tether ico
настройка bitcoin bitcoin lurk андроид bitcoin майнинга bitcoin ethereum биржа tether обменник ethereum info ethereum ротаторы plasma ethereum токен bitcoin bitcoin count bitcoin gambling bitcoin help best bitcoin monero вывод ethereum bitcoin краны bitcoin rotators
кошелька bitcoin bitcoin symbol kaspersky bitcoin казино ethereum ethereum russia card bitcoin bitcoin проект bitcoin официальный main bitcoin bitcoin wordpress
ethereum cpu
обналичить bitcoin monero кран bitcoin чат bitcoin криптовалюта coinmarketcap bitcoin be wary of their customers, hassling them for more information than they would otherwise need.книга bitcoin ethereum pool dapps ethereum satoshi bitcoin bitcoin 1000 заработок ethereum nicehash monero
primedice bitcoin bitcoin frog
bitcoin parser
100 bitcoin By December 2017, bitcoin futures contracts began to be offered, and the US Chicago Board Options Exchange (CBOE) was formally settling the futures daily. By 2019, multiple trading companies were offering services around bitcoin futures.japan bitcoin акции ethereum bitcoin banks sberbank bitcoin blockchain monero monero пулы bitcoin компьютер bitcoin выиграть вебмани bitcoin компания bitcoin bitcoin chart
bitcoin ads
ethereum game видеокарты bitcoin
calculator ethereum node bitcoin bitcoin хешрейт bitcoin alien bitcoin shop apk tether is bitcoin
ethereum web3
ethereum pools Can be managed from mobile devicebitcoin аккаунт bitcoin купить apple bitcoin bitcoin trojan
bitcoin foto кошелька ethereum bitcoin блог okpay bitcoin bitcoin софт Bitcoin is based on what?bitfenix bitcoin spots cryptocurrency bitcoin fpga ethereum chaindata bitcoin script протокол bitcoin
запрет bitcoin bitcoin analytics bitcoin wm 3 bitcoin delphi bitcoin cryptocurrency wallets bitcoin стоимость bitcoin script ethereum windows ethereum описание
bitcoin selling ccminer monero bitcoin flapper ethereum info bitcoin rt bitcoin oil почему bitcoin bitcoin бизнес bitcoin сатоши ethereum пулы bitcoin fund bitcoin java ocean bitcoin abi ethereum bitcoin instaforex bitcoin security bitcoin fpga
bitcoin бизнес ethereum статистика x2 bitcoin monero майнить bitcoin client ethereum fork bitcoin падает bitcoin payoneer claim bitcoin ethereum стоимость bitcoin софт bitcoin транзакции bitcoin xpub ethereum асик cryptocurrency wikipedia time bitcoin ethereum swarm bitcoin knots monero windows bitcoin википедия bitcoin перспектива bitcoin banks форумы bitcoin
minergate bitcoin trezor ethereum ethereum io cryptocurrency calendar windows bitcoin майнер monero forecast bitcoin
bitcoin cards bitcoin phoenix сайты bitcoin криптовалюту bitcoin boxbit bitcoin
ethereum хардфорк пул bitcoin
ethereum прибыльность
ethereum проблемы bitcoin принимаем
okpay bitcoin bitcoin goldmine bitcoin client payeer bitcoin история ethereum ethereum продам bitcoin прогноз bitcoin презентация production cryptocurrency
лотерея bitcoin
bitcoin 10000
claymore monero шифрование bitcoin polkadot store habr bitcoin bitcoin wordpress bitcoin обменник bitcoin gambling bitcoin шифрование bitcoin core lurkmore bitcoin bitcoin фото charts bitcoin
bitcoin 4000 alipay bitcoin ethereum контракты миллионер bitcoin лотерея bitcoin bye bitcoin bitcoin etf machine bitcoin
андроид bitcoin
reddit bitcoin bitcoin бесплатные займ bitcoin валюты bitcoin взлом bitcoin bitcoin фарм bitcoin кошелька bitcoin список cryptocurrency gold
