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What does decentralization mean?
Hello. Could someone explain to me, for a layman, what exactly is decentralization? Many exchanges are decentralized. Many cryptocurrencies are also called decentralized, but what exactly does that mean?
Hello. Could someone explain to me, for a layman, what exactly is decentralization? Many exchanges are decentralized. Many cryptocurrencies are also called decentralized, but what exactly does that mean?
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Decentralized is defined as a type of system where elements are distributed by certain means, decisions are made from multiple angles, and independence is maintained across the network.
Decentralization is actually a combination of the 3 parts forming a triangle.
- Structure: The system, located in many places, is a decentralized structure.
- Governance: A system managed by many equal units, with no single ruling unit, is a decentralized system.
- Independence: A system consisting of independent units working together for a common purpose is a decentralized system.
Here are some examples of decentralized systems:
- US-English is a decentralized structure as it is spoken by millions of people around the world. It is decentralized management as each person can decide for himself how he speaks English. There is independence because you can speak English even if everyone around you speaks a different language.
- A forest is a decentralized structure because it is made up of thousands of trees, each at some distance from each other. It has a bit of decentralized management as each tree grows in its own way. It has independence because a tree can survive on its own, even though each of them survives as a group.
- Life species are decentralized structures because each life form is in its own space, separate from the others. It is decentralized management as they each manage their own lives. It has independence because each form of life can, to some extent, live alone, without the others.
Decentralized systems have some advantages, including:
- Attack resistance: If several units in a decentralized system are attacked, the system will not collapse
- Problem tolerance: If several units in a decentralized system have problems or bugs, the system will remain active.
- Tamper-proof: If several units in a decentralized system connect with malicious intent, the system will remain intact and active.
Decentralized is defined as a type of system where elements are distributed by certain means, decisions are made from multiple angles, and independence is maintained across the network.
Decentralization is actually a combination of the 3 parts forming a triangle.
- Structure: The system, located in many places, is a decentralized structure.
- Governance: A system managed by many equal units, with no single ruling unit, is a decentralized system.
- Independence: A system consisting of independent units working together for a common purpose is a decentralized system.
Here are some examples of decentralized systems:
- US-English is a decentralized structure as it is spoken by millions of people around the world. It is decentralized management as each person can decide for himself how he speaks English. There is independence because you can speak English even if everyone around you speaks a different language.
- A forest is a decentralized structure because it is made up of thousands of trees, each at some distance from each other. It has a bit of decentralized management as each tree grows in its own way. It has independence because a tree can survive on its own, even though each of them survives as a group.
- Life species are decentralized structures because each life form is in its own space, separate from the others. It is decentralized management as they each manage their own lives. It has independence because each form of life can, to some extent, live alone, without the others.
Decentralized systems have some advantages, including:
- Attack resistance: If several units in a decentralized system are attacked, the system will not collapse
- Problem tolerance: If several units in a decentralized system have problems or bugs, the system will remain active.
- Tamper-proof: If several units in a decentralized system connect with malicious intent, the system will remain intact and active.
Machine translated
Decentralization means transferring control, decisions, and resources from one central point to many equal points or nodes. This means that no single institution or unit has full control over the system, but decisions are made by the entire community or network of equal participants. In the case of decentralized exchanges, transactions are not conducted through a central system, but directly between users, eliminating the need to trust a single institution. In the case of decentralized cryptocurrencies, this means that there is no central bank or government controlling the issuance and value of the currency, and decisions regarding the system are made by the community of users. Overall, decentralization aims to increase equality, security, and resilience of the system against attacks or interference from external sources, by dispersing power and control among multiple participants.
Decentralization means transferring control, decisions, and resources from one central point to many equal points or nodes. This means that no single institution or unit has full control over the system, but decisions are made by the entire community or network of equal participants. In the case of decentralized exchanges, transactions are not conducted through a central system, but directly between users, eliminating the need to trust a single institution. In the case of decentralized cryptocurrencies, this means that there is no central bank or government controlling the issuance and value of the currency, and decisions regarding the system are made by the community of users. Overall, decentralization aims to increase equality, security, and resilience of the system against attacks or interference from external sources, by dispersing power and control among multiple participants.
Machine translated