What is decentralization of blockchain (what does decentralization of blockchain mean)
What is decentralization of blockchain? According to Babbitt, the degree of decentralization of blockchain was very high in 2019. What is decentralization of blockchain? Blockchain is a distributed network system built on an open, transparent, and verifiable technology system. In this ecosystem, all participants are free to control and modify data. And these are all to ensure that the transaction data is controlled by the developers themselves, and to ensure the security and privacy of the transaction, which is just beginning
What does the decentralization of blockchain mean We often say that the decentralization of blockchain is a revolutionary movement. But for ordinary people, this doesn’t sound like a very ridiculous thing. It is just a concept and has no meaning; In the field of Cryptocurrency, this statement may not be correct; But in fact, both Bitcoin and the entire digital asset industry are facing a major problem: how much decentralization is there? What is decentralization? Simply put, using smart contracts to perform complex functions and implement them – such as trading, storage, and so on. Essentially, it is a completely disintermediated approach If everything can be digitized or immutable, then decentralization is equivalent to controlling power on the internet. So in the real world, people are usually considered to trade when they have the private key, and they can change their decisions as they please What does decentralization mean? In fact, it is also a new form of economic organization, with its main feature being participation in a people-centered manner. Because everyone’s interests are subject to different controls. For example, when you use your phone, your computer will automatically run software or programs, and the system will not shut down your device Due to the rapid development of computer technology, there are more and more nodes in the network, which leads to serious data islands. This problem can be solved through distributed accounting: all records must be managed by the accounting unit, which can avoid centralized calculation results and eliminate the unfair impact of centralization. Of course, there are many other reasons, such as information leakage, which can also be used for various purposes, including payment processors and financial institutions
However, many projects have realized the disintermediation in the blockchain field, such as protocols like Uniswap, and even platforms like Ethereum. However, these platforms do not really rely on traditional banking services, but operate according to the rules of the traditional banking system. Therefore, it can be said that the value of blockchain technology lies in its ability to provide security for those who cannot directly own user accounts In order to make it easier for these untrusted services to gain trust and support, most applications are built on top of an application called “out of chain”, which contains links to multiple wallet addresses. These wallets can only transfer funds to each other, without any intermediaries. In addition, the token can also serve as an incentive mechanism to send funds to third parties, making the verification process more transparent In the world of DeFi, the “blockchain as mining” model is very suitable for developers to use. Although the current DeFi products are mainly supported by centralized servers, over time, new decentralized solutions may emerge.
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