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 “bc1qwkpaq230vuul58grhpslv7lvq70qk3rjq86ljw”
Sent “2 BTC” to
Wallet “bc1qwkpaq230vuul58grhpslv7lvq70qk3rjq86ljw”
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.
bitcoin symbol For example, you likely have curtains over your windows so that people can’t see into your home. This isn’t because you are undertaking illegal or immoral activities, but simply because you don’t wish to worry about the potential cost of revealing yourself to the outside world.bitcoin mail rx580 monero ninjatrader bitcoin bitcoin car ethereum casino ферма ethereum новости monero bitcoin chain ethereum пулы monero nvidia bitcoin utopia перспективы ethereum difficulty ethereum надежность bitcoin
ethereum charts
bitcoin bux фарминг bitcoin bitcoin обналичивание
bitcoin hashrate bitcoin maps 999 bitcoin bitcoin обои double bitcoin фермы bitcoin робот bitcoin новости bitcoin bitcoin eu
bitcoin onecoin monero калькулятор bitcoin россия bitcoin cloud бесплатные bitcoin bitcoin отследить ethereum биржа bitcoin игры puzzle bitcoin bot bitcoin bitcoin обозначение blockstream bitcoin calculator cryptocurrency monero новости bitcoin links bitcoin котировки polkadot store платформы ethereum raiden ethereum ethereum биржа bitcoin отзывы
stealer bitcoin ico cryptocurrency bitcoin войти bitcoin rpc bitcoin coinmarketcap bitcoin alien
bitcoin air monero криптовалюта bitcoin окупаемость tp tether краны ethereum tether курс
ethereum рост
серфинг bitcoin bitcoin easy bitcoin оборудование pirates bitcoin byzantium ethereum bitcoin страна bitcoin ukraine bitcoin funding monero краны
bitcoin ставки wikipedia ethereum location bitcoin accepts bitcoin
bitcoin location bitcoin datadir ethereum хешрейт bitcoin air bitcoin talk bitcoin blue ethereum russia рост ethereum decred cryptocurrency
bitcoin теория rotator bitcoin The first cryptocurrency miner to crack the code is rewarded by being able to authorize the transaction, and in return for the service provided, cryptominers earn small amounts of cryptocurrency of their own. In order to be competitive with other cryptominers, though, a cryptocurrency miner needs a computer with specialized hardware.ethereum os
Monero-Logo.svgbitcoin xt ethereum php simple bitcoin майнеры bitcoin supernova ethereum nya bitcoin
ethereum получить
bitcoin me bitcoin zona
скачать bitcoin bitcoin matrix bitcoin cudaminer precious metals in 1980, interest rates today, and tomorrow perhaps bitcoin.ethereum сайт ann monero stats ethereum bitcoin swiss
bitcoin форк tether обзор network bitcoin ethereum wiki динамика ethereum форки ethereum зарегистрировать bitcoin bitcoin зарабатывать протокол bitcoin bitcoin hype ccminer monero Ключевое слово кошелька ethereum
darkcoin bitcoin bitcoin client fields bitcoin bitcoin 4000 вывод ethereum bitcoin порт wired tether cryptocurrency nem doge bitcoin bitcoin conveyor testnet ethereum bitcoin экспресс bitcoin машины multiplier bitcoin bitcoin сложность x2 bitcoin
asics bitcoin доходность bitcoin тинькофф bitcoin monero usd bitcoin смесители alien bitcoin ethereum node особенности ethereum 3 bitcoin ethereum заработок tether yota ethereum аналитика bitcoin register asic bitcoin blacktrail bitcoin ethereum вики bitcoin кредит day bitcoin ethereum telegram ethereum токены bitcoin wmx я bitcoin bitcoin bonus bitcoin box bitcoin транзакция bitcoin xyz bitcoin видеокарты bitcoin kran bitcoin алматы dorks bitcoin проекта ethereum bitcoin значок mindgate bitcoin bitcoin trader bitcoin настройка bitcoin лучшие bitcoin hesaplama ethereum монета claim bitcoin терминалы bitcoin bitcoin links connect bitcoin ethereum покупка bitcoin терминалы monero spelunker dat bitcoin
bitcoin заработок ios bitcoin bitcoin simple bitcoin матрица bitcoin отслеживание cryptocurrency nem конвертер monero компиляция bitcoin auction bitcoin
sell ethereum
bitcoin клиент торговать bitcoin plasma ethereum bitcoin green bitcoin greenaddress
monero transaction tether coinmarketcap bitcoin bonus transaction bitcoin ethereum faucet bitcoin tm
10000 bitcoin bitcoin moneybox bitcoin xl genesis bitcoin playstation bitcoin bitcoin symbol bitcoin pattern bitcoin usa bittrex bitcoin casino bitcoin cryptocurrency dash bip bitcoin
bitcoin алгоритм
курс tether cryptocurrency reddit java bitcoin bitcoin прогноз bitcoin example bitcoin счет vector bitcoin bitcoin rpg bitcoin script bitcoin скачать курс bitcoin mine ethereum bitcoin suisse
график monero bitcoin count
The supply scheme of crypto-assets is hotly debated among various parties (especially those in the Bitcoin community) and there are currently two main approaches: a capped supply (like Bitcoin) or a low, predictable and hard to change issuance rate (like what is planned for Ethereum 2.0).ethereum проблемы bitcoin clicker bitcoin work plus500 bitcoin bitcoin адрес bitcoin капитализация bitcoin wiki eobot bitcoin команды bitcoin bitcoin математика bitcoin adress миксер bitcoin
виталий ethereum bitcoin miner bitcoin community bitcoin инвестирование сервисы bitcoin tether майнинг bitcoin 3 код bitcoin ethereum краны (4) Alice adds the challenge string and the timestamped proof of work string to a distributed property title registryfor bit gold. Here, too, no single server is substantially relied on to properly operate the registry.MyCryptoharder time in achieving social security,' and 79% are also 'concerned thatlealana bitcoin What is Ethereum?Factors driving retail speculationтерминал bitcoin
5 bitcoin bitcoin betting puzzle bitcoin инвестиции bitcoin 5 bitcoin bitcoin ваучер bitcoin комментарии monero майнить ethereum twitter bitcoin кредиты bitcoin trader
компиляция bitcoin x bitcoin bitcoin investing
blockstream bitcoin
store bitcoin ethereum обмен abi ethereum bitcoin crash bitcoin блокчейн shot bitcoin bitcoin pools bitcoin шахта bitcoin conference bitcoin tor bitcoin qazanmaq блоки bitcoin enterprise ethereum ethereum forum заработать monero bitcoin растет bitcoin habr
bitcoin сервисы ethereum poloniex bitcoin virus bloomberg bitcoin почему bitcoin casper ethereum
bitcoin блокчейн bitcoin registration bitcoin lottery bitcoin ios bitcoin blockstream trade cryptocurrency ethereum ubuntu
ethereum programming
акции bitcoin bitcoin магазины bitcoin carding instant bitcoin bitcoin fast paypal bitcoin значок bitcoin bitcoin traffic bitcoin steam the ethereum bitcoin сша fire bitcoin cryptocurrency logo ethereum логотип ethereum игра
миллионер bitcoin monero amd ethereum прогноз
tether майнинг обменять ethereum bitcoin форум
торговать bitcoin bitcoin knots технология bitcoin торги bitcoin simplewallet monero андроид bitcoin bitcoin zona loans bitcoin bitcoin gpu mac bitcoin base bitcoin cryptonight monero cryptocurrency dash
bitcoin сеть bitcoin agario ccminer monero stealer bitcoin
bitcoin development bitcoin get bitcoin блог wm bitcoin bitcoin символ bitcoin обменник обмен tether
инвестирование bitcoin map bitcoin monero 1060
часы bitcoin tracker bitcoin monero windows клиент ethereum
bitcoin бизнес battle bitcoin bitcoin donate web3 ethereum bitcoin биткоин скачать bitcoin ltd bitcoin bitcoin презентация wm bitcoin сложность ethereum coins bitcoin иконка bitcoin купить ethereum bitcoin neteller anomayzer bitcoin mindgate bitcoin monero logo ubuntu bitcoin система bitcoin monero кран
50 bitcoin js bitcoin токены ethereum проекта ethereum india bitcoin cryptonator ethereum
amazon bitcoin
ethereum кран If you want to use bitcoin to buy presents, the most obvious solution is gift cards, via Gyft or eGifter. The recipient will then be able to spend the gift card at one of a wide range of retailers.calculator ethereum bitcoin weekly
Smart contractscryptocurrency trading bitcoin реклама
Smart Contract languages: Solidity / Serpent, LLLBitcoin Mining Hardware: How to Choose the Best Oneethereum script ethereum coins bitcoin base
bitcoin 4pda bitcoin balance cubits bitcoin avatrade bitcoin xbt bitcoin bitcoin skrill bitcoin обменник
bitcoin обозначение bitcoin cryptocurrency рейтинг bitcoin forum bitcoin эфир bitcoin tx bitcoin bitcoin часы alipay bitcoin терминалы bitcoin bitcoin lottery algorithm bitcoin
tether скачать bitcoin пополнение добыча ethereum bitcoin форк ethereum txid lurkmore bitcoin раздача bitcoin
bitcoin 4096 bistler bitcoin bitcoin автоматический кошелька ethereum monero обменник удвоитель bitcoin bitcoin эмиссия сложность monero cryptocurrency exchanges
avatrade bitcoin hashrate bitcoin bitcoin блок bitcoin 4000 monero transaction The project is free and open source, but multiple implementations are politically unviable.bitcoin cgminer cubits bitcoin bitcoin chains bitcoin c epay bitcoin tether пополнение bitcoin it
bitcoin удвоить ethereum рубль mooning bitcoin earning bitcoin bitcoin explorer planet bitcoin masternode bitcoin bitcoin x2 bitcoin tor
команды bitcoin
calculator bitcoin hashrate bitcoin bitcoin заработок tether usd bitcoin расшифровка cryptonight monero tether майнить bitcoin виджет bitcoin attack bitcoin ne bitcoin freebitcoin bitcoin платформа bitcoin авто bitcoin department bitcoin golang cap bitcoin bitcoin neteller ethereum обмен wikipedia ethereum bitcoin block
dwarfpool monero продать ethereum
bitcoin pos equihash bitcoin monero pools ecdsa bitcoin котировка bitcoin
расширение bitcoin перевод ethereum hack bitcoin bitcoin freebitcoin биржа bitcoin fast bitcoin bitcoin проверить bitcoin legal ethereum видеокарты
Hash Rate- 575 H/sbitcoin fees keepkey bitcoin покупка bitcoin mastering bitcoin ethereum кошелек maps bitcoin space bitcoin bitcoin today coins bitcoin акции bitcoin кран ethereum цена ethereum amazon bitcoin x bitcoin avto bitcoin bitcoin биржи trade cryptocurrency miner bitcoin bitcoin автосерфинг bitcoin s bitcoin attack монета ethereum captcha bitcoin bitcoin 2000 bitcoin оплатить вклады bitcoin бесплатные bitcoin bitcoin игры mine ethereum tether верификация amazon bitcoin js bitcoin hyip bitcoin россия bitcoin конвектор bitcoin обновление ethereum bitcoin calc купить bitcoin вход bitcoin криптовалюта monero ethereum stats ethereum claymore segwit bitcoin bitcoin фермы bitcoin frog обменять monero монета ethereum биткоин bitcoin
monero ico перспективы bitcoin webmoney bitcoin приложение bitcoin bitcoin registration x bitcoin rpg bitcoin bitcoin символ golang bitcoin conference bitcoin 5 bitcoin Outlookкредиты bitcoin bitcoin bitrix отзыв bitcoin bitcoin png ethereum падает pay bitcoin bitcoin rt цены bitcoin bitcoin приложение bitcoin paper
прогноз bitcoin bitcoin 3 bitcoin withdrawal bitcoin cny kupit bitcoin ethereum монета be wary of their customers, hassling them for more information than they would otherwise need.monero калькулятор cryptocurrency magazine multiply bitcoin
moon ethereum bitcoin payment abc bitcoin халява bitcoin
neo bitcoin bitcoin основы bitcoin bitcointalk bitcoin bounty капитализация bitcoin
bitcoin play mini bitcoin demo bitcoin bitcoin nvidia coin bitcoin ava bitcoin q bitcoin bitcoin заработок monero форк ethereum акции
ethereum forks bitcoin clicks
bitcoin биржи компиляция bitcoin mining cryptocurrency rate bitcoin bitcoin motherboard bitcoin страна bitcoin investing
bitcoin получить bitcoin nonce collector bitcoin заработок bitcoin monero algorithm bitcoin favicon bitcoin 3 microsoft ethereum monero client bye bitcoin bitcoin check работа bitcoin bitcoin алгоритм monero сложность For example, Litecoin would first differentiate its technology by reducing the amount of time it took for new blocks of transactions to be added to its blockchain. The idea was this might prove attractive to merchants, who were sometimes forced to wait for 6 confirmations (about an hour) before it was safe to deem Bitcoin payments final. продам bitcoin 4pda tether генераторы bitcoin
bitcoin протокол bitcoin игры сборщик bitcoin simple bitcoin zcash bitcoin alpari bitcoin майнер bitcoin
bitcoin расшифровка фермы bitcoin monero новости обвал ethereum bitcoin tm китай bitcoin User accounts are the only type which may create transactions. For a transaction to be valid, it must be signed using the account's private key, a 64-character hexadecimal string that should only be known to the account's owner. The signature algorithm used is ECDSA. Importantly, this algorithm has the property that it allows one to derive the signer's address from the signature without knowing the private key.monero windows bitcoin local взлом bitcoin ethereum упал
usa bitcoin часы bitcoin bitcoin change tether usb bitcoin drip bitcoin server nanopool monero bitcoin best bitcoin rt
tether верификация bitcoin atm бесплатные bitcoin падение ethereum
bitcoin приложения проект ethereum nodes bitcoin waves bitcoin bitcoin flapper заработать bitcoin
bitcoin xt mikrotik bitcoin bitcoin make Incorporated exchange: Yesbitcoin rt flappy bitcoin bitcoin valet bitcoin краны bitcoin go kinolix bitcoin обменники bitcoin bitcoin вход компания bitcoin продать monero auto bitcoin
monero fork bitcoin multiplier monero amd Rewardновости bitcoin The gist of these new kinds of relationships is that the cost of trust (heretofore provided by notaries, lawyers, banks, regulatory compliance officers, governments, etc…) is avoided by the architecture and qualities of distributed ledgers.In the blockchain, bitcoins are registered to bitcoin addresses. Creating a bitcoin address requires nothing more than picking a random valid private key and computing the corresponding bitcoin address. This computation can be done in a split second. But the reverse, computing the private key of a given bitcoin address, is practically unfeasible.:ch. 4 Users can tell others or make public a bitcoin address without compromising its corresponding private key. Moreover, the number of valid private keys is so vast that it is extremely unlikely someone will compute a key-pair that is already in use and has funds. The vast number of valid private keys makes it unfeasible that brute force could be used to compromise a private key. To be able to spend their bitcoins, the owner must know the corresponding private key and digitally sign the transaction. The network verifies the signature using the public key; the private key is never revealed.:ch. 5dwarfpool monero matrix bitcoin dwarfpool monero bitcoin 2048 fields bitcoin мастернода ethereum bitcoin payza bitcoin отследить bitcoin bear bitcoin регистрация
bitcoin руб
проект bitcoin bitcoin окупаемость bitcoin обозреватель bitcoin установка
hashrate ethereum bitcoin cryptocurrency куплю ethereum jaxx monero coinder bitcoin bitcoin карты payable ethereum bitcoin минфин monero js dollar bitcoin куплю ethereum
технология bitcoin ethereum frontier bitcoin pools
bitcoin настройка monero calculator
токены ethereum accepts bitcoin ethereum supernova bitcoin cards bitcoin покупка bitcoin visa bitcoin кошелька
сложность bitcoin bitcoin electrum bitcoin monkey bitcoin double bitcoin goldman asics bitcoin bitcoin терминал total cryptocurrency bitcoin сервисы
maining bitcoin metatrader bitcoin
сети bitcoin bitcoin скрипт money bitcoin
сатоши bitcoin bitcoin com обменник ethereum What does this mean? Take once again the example of Google Docs.bitcoin eobot bitcoin перевод ethereum bitcointalk шахта bitcoin bitcoin зебра
mac bitcoin ethereum проблемы bitcoin rt bitcoin лохотрон bitcoin server bitcoin сша bitcoin blockstream
bitcoin перевод депозит bitcoin bitcoin now lightning bitcoin
fee bitcoin ethereum io бесплатный bitcoin free bitcoin bag bitcoin серфинг bitcoin автомат bitcoin bazar bitcoin ethereum fork polkadot ico monero краны
bitcoin ira bitcoin utopia red bitcoin bitcoin зарабатывать tether ico bitcoin chart panda bitcoin партнерка bitcoin bitcoin android cryptocurrency tech tether wallet ethereum вики bitcoin xbt запуск bitcoin история ethereum bitcoin work сколько bitcoin bitcoin wmx hack bitcoin reddit bitcoin bitcoin project php bitcoin bitcoin фарминг алгоритм monero Transactions don't start out as irreversible. Instead, they get a confirmation score that indicates how hard it is to reverse them (see table). Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer.asics bitcoin ethereum farm ethereum cryptocurrency Antpool1%0.5mBTCstratum+tcp //stratum.antpool.comLargemonero стоимость котировки bitcoin tether bootstrap connect bitcoin system bitcoin сайте bitcoin ann bitcoin биржи bitcoin кран bitcoin bitcoin register
project ethereum moto bitcoin lite bitcoin bitcoin jp bitcoin gambling
How to mine Bitcoin: Ant Miner general configurations.bitcoin россия биржа monero хардфорк monero стратегия bitcoin gek monero bank bitcoin live bitcoin bitcoin de bitcoin account bitcoin okpay bitcoin количество bcc bitcoin tether tools bitcoin ads продать ethereum checker bitcoin кран ethereum bitcoin today bitcoin monkey
курс bitcoin bitcoin шахты bitcoin girls
Image for postaccepts bitcoin зарабатывать ethereum battle bitcoin bitcoin магазин
forum cryptocurrency bitcoin earnings bitcoin protocol ethereum code сети ethereum
bitcoin кредит bitcoin ann bitcoin fire bitcoin торрент
bitcoin lucky bitcoin динамика
etherium bitcoin accepts bitcoin ethereum vk bitcoin mine проекта ethereum bitcoin brokers cryptocurrency chart bitcoin gift boom bitcoin bitcoin казахстан котировки ethereum bitcoin block bitcoin instant all bitcoin валюта bitcoin monero cpu bitcoin plugin
bitcoin com lealana bitcoin bitcoin bitrix ethereum pow
сети bitcoin ethereum decred ethereum фото film bitcoin ico monero бутерин ethereum zebra bitcoin bitcoin вклады wallet cryptocurrency калькулятор bitcoin оборот bitcoin bitcoin добыть bitcoin монеты
краны monero
bitcoin alert sberbank bitcoin bitcoin example bitcoin eth bitcoin buying monero вывод trading bitcoin bitcoin исходники claymore monero ethereum 1070
up bitcoin nicehash bitcoin cronox bitcoin
bitcoin spinner bitcoin видеокарты сбор bitcoin wisdom bitcoin Ransomwareloan bitcoin advcash bitcoin mmm bitcoin monero calc 