What does decentralized mean in blockchain? Benefit of decentralization
Advances in the digital field are gradually shaping people's daily life process, including enterprises, academic organizations, companies and government associations. The application of blockchain technology has become one of the best technologies. It is usually regarded as a tool for answering many related questions, such as digital identity, assets and data ownership, security, and surprising future decentralized decisions. Let's understand the importance and benefits of decentralization in the blockchain platform.
What does the blockchain mean?
Blockchain is a distributed database or classification account shared between computer network nodes. As a database, the blockchain stores information in the form of electronic form. The blockchain is known for its key roles in Bitcoin and other cryptocurrency systems, and is used to maintain security and decentralized transaction records. The innovation of the blockchain is that it ensures the loyalty and security of the data records, and trusts with a third party without trust.
A key difference between typical database and blockchain is the structural mode of data. The blockchain collects information in the form of a group, which is called a collection of information. The block has a certain storage capacity. When filling, it will close and link to the previously filled block to form a data chain called the blockchain. All new information after adding blocks is compiled into newly formed blocks. Once filled, the block will also be added to the chain.
The database usually constructs its data into a table, and the blockchain, as the name suggests, constructs its data into a block (block) stringed together. When the decentralized nature is implemented, this data structure form an irreversible data schedule. When a piece is filled, it is fixed and becomes part of this timetable. When it is added to the chain, each block in the chain is given a precise time stamp.
Key points for blockchain
Blockchain is a shared database. The method of storing information is different from typical databases; the blockchain stores data in the block, and then connects it through passwordology.
As the new data enters, it is input into a new block. Once the block is filled with data, it will be linked to the previous block, which makes the data connect together in the order of time.
Different types of information can be stored on the blockchain, but so far, the most commonly used is trading book.
In the case of Bitcoin, the blockchain is decentralized, so no one or groups have control -on the contrary, all users retain their control together.
The decentralized blockchain is unchanged, which means that the input data is irreversible. For Bitcoin, this means that anyone can view the permanent record of the transaction.
Data is blockchain technology
In the field of digital, the creation, classification, communication, and distribution of various data depends not only on the public process, but also the technology. The algorithm determines the update you saw on the FB here; the news office relies on information research to investigate the news value of data. Online journals, blogs, and social networking sites are digitized to obtain commercial advertising data for people. The Ethereum blockchain is a decentralized system that promises to change the decentralization and trust to change digital currencies, improve logistics, and help supervise digital identity. These algorithms are basically evolved and used by private users.
Data is crucial for social coordination (that is, service). Digital information is a senior example of data. This means that the status of the digital field will greatly affect management and services. Artificial intelligence and blockchain platforms are one of the most obvious representatives of this trend. These technologies are shaping more and more social associations. The political and monetary departments are also gradually affected by the technology of artificial intelligence and distributed classification, which has expanded the availability, organization and guidance of the management departments including them. Analysts and experts are predicting that the strength and intensity of information are as powerful as the modern industrial revolution.
What is decentralization?
If commodities or services are collectively operated by participants using most rules, they are decentralized. As far as Bitcoin is concerned, its attributes, such as Bitcoin's total supply, depend on most of its online participants.
Understanding decentralization and its importance is essential for understanding general cryptocurrencies and the reasons for its initial creation.
Why is decentralization important?
A centralized system, or a system that is completely controlled by entities, often becomes victims of conflicts of interest. These systems also have a single -point failure, making it more vulnerable to attack.
There is no single -point failure of decentralized systems. Unless most participants agree, they cannot be changed, which greatly reduces the possibility of successful attacks and corruption.
Bitcoin is the first real example of no central authority system, except for the Internet that is partially concentrated due to Internet service providers.
Why is it important to decentralize power?
Decentralization is not a new concept. When building a technical solution, three major network structures are usually considered: centralized, decentralized and decentralized. Although decentralized networks are usually used in blockchain technology, the blockchain application itself cannot be simply classified as decentralized or non -decentralized. In contrast, decentralization is a sliding scale that should be used in all aspects of blockchain applications. More and more fair services can be achieved through decentralized management and access to applications. There are usually some weighing decentralization, such as low transaction volume, but ideal, these weighing is worth improving stability and service levels.
Benefit of decentralization
1. Provide an environment that does not need to be trusted
In the decentralized blockchain network, no one must know or trust others. Each member in the network has exactly the same data copy in the form of distributed account books. If the member's account is changed or damaged in any way, it will be rejected by most members in the network.
2. Improve data coordination
The company often exchanges data with partners. On the contrary, these data are usually converted and stored in the data islands of all parties, and they will reopen the surface when they need to be transmitted to the downstream. Each time the data is converted, the data is lost or the error data enters the workflow. By decentralized data storage, each entity can access the shared data view in real time.
3. Reduce weaknesses
Power decentralization can reduce the weaknesses that may excessively rely on specific participants in the system. These weaknesses may lead to systemic faults, including inefficient service or service efficiency that cannot be provided, because resource exhaustion, periodic interrupts, bottlenecks, lack of sufficient incentives or good service corruption.
4. Optimize resource allocation
Decentralization can also help optimize resource allocation, thereby providing better performance and consistency for promised services, and reducing the possibility of disaster failure.
Imagine that a company has a server field, including 10,000 computers to maintain a database containing all customer account information. The company has a warehouse building, including all these computers under the eaves, and can fully control each computer and all information contained. However, this provides a single point failure. What if the power of that place stops? What if its Internet connection is cut off? What if it is burned on the ground? What if a bad actor deletes all the content? In any case, the data is lost or damaged.
The function of the blockchain is to allow the data saved in the database to be distributed between multiple network nodes with different positions. This will not only produce redundancy, but also keep the data stored in it -if someone tries to change the record in a example of the database, other nodes will not be changed, so it can prevent bad actors from doing so. If users tampered with Bitcoin's transaction records, all other nodes will cross each other, and it is easy to use incorrect information to determine nodes. The system helps to establish an accurate and transparent order order. In this way, any single node in the network cannot change the saved information.
Therefore, information and history (such as cryptocurrency transactions) are irreversible. These records can be a trading list (such as using cryptocurrencies), but blockchain can also save various other information, such as legal contracts, national signs or company product inventory.
Is the decentralized blockchain safe?
Blockchain technology realizes decentralization and trust in various ways. First of all, the new block always stores linearly in the order of time. In other words, they are always added to the "end" in the blockchain. After adding blocks at the end of the blockchain, it is difficult to return and change the content of blocks, unless most networks reach consensus. This is because each piece contains its own hash, the front block hash and the time stamp mentioned above. The hash code is created by the mathematical function, which converts digital information into a string of numbers and letters. If the information is edited in any way, the hash code will be changed.
Suppose hackers who run nodes on the blockchain network want to change the blockchain and steal cryptocurrencies from others. If they want to change their single copy, it will no longer be consistent with all other copies. When others cross their copy, they will see that this copy stands out, and the chain of the hacking version will be considered illegal and discarded.
In order to successfully perform such hacking, hackers need to control and change 51%or more blockchain copies at the same time so that their new copies can become most copies, thereby becoming an agreed chain. This attack also requires a lot of funds and resources, because they need to be replaced, because they now have different timestamps and hash codes.
Due to the scale and growth rate of many cryptocurrency networks, the cost of realizing this feat may not be overcome. This is not only very expensive, but also may not have results. This will not be ignored, because online members will see such a fierce change in the blockchain. Then, the network members will divide the hard fork to the new version of the chain without being affected. This will lead to a sharp decline in the value of the attack version, making the attack eventually meaningless because the bad guys control worthless assets. If the bad guy wants to attack the new branch of Bitcoin, the same situation will happen. It was established like this, so participating in the network is more economic than attacking it.
All in all, the decentralization in the blockchain is a information library for storing resource libraries and transaction through the same network. "Resources" may not only be cash or transaction data, but also additional data about ownership, agreement, products and other data. Decentralization makes blockchain technology more secure and reliable.