The following is a guest post by David Hay who has agreed to share his understanding of why decentralization is such an important factor when it comes to cryptocurrency. He writes “Decentralization simply means distributing the power so there is less likely to be a single point of failure. To understand decentralization, we must first understand what is blockchain technology. So, read the article.”

Decentralization simply means distributing the power so there is less likely to be a single point of failure. To understand decentralization, we must first understand what is blockchain technology.

The concept of decentralization has existed since the inception of time. However, it wasn’t until recently that blockchain technology became an effective way to achieve this model. So what exactly is Blockchain technology? To get a good understanding of this topic, you can read our article here .

This article explains the benefits and drawbacks of decentralization, or the lack of central control.

Decentralization is when a service or process is not controlled by a single individual, entity or group of individuals. For example, when compared to the decentralization of blockchain technology and the intricate systems which ensure the transactions of digital currencies globally, Bitcoin platform ensures that transactions are done with any fees whatsoever.

At its core, the founders of blockchain technology emphasizes that decentralization is an essential feature of any blockchain system. The main objects of decentralization are to reduce the probability of successful cyberattacks as much as possible and to reduce the predictability of malicious behavior that might disturb an entire network or other systems that use it in some way.

Look I don’t care if you are a noob, newbie or just started a few months ago – this article is for you. Decentralization is at the core of what makes bitcoin so compelling and I want to help you understand the concept in a quick and fun way.

Decentralization is the process by which an entity or organization is dispersed or distributed, decentering power away from a central point. In simple words decentralization means everything is operating like a wheel where spokes are equal and none are singled out.   Imagine if any one spoke is braked, the wheel will not function properly.

Decentralization is an increasingly important topic within the Bitcoin community, as it is one of the fundamental distinguishing factors between Bitcoin and traditional payment systems. There will be a lot of interesting discussions on this subject at the forthcoming North American Bitcoin Conference in Miami.

A blockchain is a public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central record keeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically. By design, blockchains are inherently resistant to modification of the data. To be able to modify a single record on the blockchain would require making changes on all copies of the blockchain stored on every computer that has a copy of it. This goes against the decentralized nature of blockchains by requiring massive collusion or large central repositories for data.

Blockchain is a distributed ledger technology used to maintain a continuously growing list of data records that are hardened against tampering and revision. Each data record, or block, contains a timestamp and a link to a previous block.

Every time a transaction occurs on the blockchain, the record of it is added to a ledger of past transactions. This ledger of information is stored on every computer running the blockchain software and is constantly updated. A decentralized (or distributed) network means that there are multiple copies of this ledger on computers all over the world. It’s also important to note that for many blockchains, there isn’t just one single unified ledger stored in one place; rather, there will be separate ledgers stored by many different individuals and businesses in completely different locations. Any transaction that occurs within the blockchain must be validated by at least 51% of the network before it can be recorded as part of a permanent and unalterable blockchain record.

By Amit Kumar Singh

Hi, My Name is Amit Kumar Singh a digital marketing Expert from India. I have more than 5+ years of experience in Digital Marketing. I am passionate about Social Media Marketing, SEO, PPC, Google Analytics, Google Webmaster, Google Ads, Facebook Ads, Quora Ads, Pinterest Ads, Content Marketing, Lead Generation, Affiliate Marketing, and Email marketing, online reputation management, Web Analytics, Web Usability, and Conversion Rate Optimization.