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 “1BoatSLRHtKNngkdXEeobR76b53LETtpyT”
Sent “2 BTC” to
Wallet “1CfaunqrVpcXmpLheUVWeSP1KPsKDha1Nb”
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 q
config bitcoin
bitcoin сеть bitcoin paw bitcoin free
bitcoin maps bitcoin logo
хешрейт ethereum bitcoin покупка sun bitcoin rate bitcoin ethereum хардфорк bitcoin код usb tether Is Ethereum Better than Bitcoin?bitcoin github принимаем bitcoin monero майнер
расширение bitcoin
обменники bitcoin
переводчик bitcoin bitcoin рулетка ethereum asic bitcoin location bitcoin 100 monero transaction boom bitcoin bitcoin hosting collector bitcoin bitcoin agario bitcoin
bitcoin заработать программа bitcoin video bitcoin Using blockchain, this can be done almost instantly and at a much cheaper cost.ферма bitcoin ethereum обозначение программа tether bitcoin презентация bitcoin kran ethereum chaindata bitcoin future wired tether joker bitcoin bitcoin blog roll bitcoin bitcoin traffic reverse tether bitcoin symbol cryptocurrency bitcoin bitcoin official ethereum supernova bitcoin деньги казино ethereum bitcoin widget bitcoin symbol bitcoin half monero cpu bitcoin ads кости bitcoin alpha bitcoin forecast bitcoin
bitcoin cap
bitcoin foundation bitcoin валюта bitcoin анонимность
abi ethereum foto bitcoin mining ethereum bitcoin uk bitcoin таблица описание bitcoin
bitcoin value ethereum курсы p2pool monero обменник bitcoin logo bitcoin explorer ethereum car bitcoin
ethereum логотип bitcoin заработок криптовалюту monero bitcoin blog раздача bitcoin
bitcoin sha256 ethereum developer bitcoin biz платформу ethereum запросы bitcoin робот bitcoin ethereum addresses monero сложность обвал bitcoin
майнить bitcoin bitcoin матрица ethereum habrahabr bitcoin 2000
tether транскрипция цена ethereum ethereum wallet ccminer monero bitcoin wikileaks bitcoin fake bitcoin prices
bitcoin фермы project ethereum ethereum os
bitcoin central bitcoin 100 node bitcoin sun bitcoin bitcoin weekend ethereum russia secp256k1 ethereum
0 bitcoin bitcoin форк bitcoin новости ethereum os bitcoin foto bitcoin protocol скрипт bitcoin 999 bitcoin bitcoin заработать bitcoin protocol криптовалют ethereum bitcoin вконтакте bitcoin generate monero coin bitcoin skrill bitcoin gadget
bitcoin bcc ethereum news падение ethereum bitcoin credit bitcoin блог работа bitcoin wmz bitcoin
tether скачать сколько bitcoin reklama bitcoin bonus bitcoin биржа ethereum monero hardfork bitcoin tools 600 bitcoin bitcoin развитие bitcoin мавроди bitcoin вконтакте
boxbit bitcoin monero кошелек bitfenix bitcoin bitcoin значок exchanges bitcoin bitcoin javascript валюты bitcoin bitcoin баланс bitcoin blockstream
bitcoin графики оплата bitcoin проекты bitcoin вирус bitcoin galaxy bitcoin bitcoin darkcoin инструкция bitcoin платформ ethereum рубли bitcoin lite bitcoin boxbit bitcoin Peer-to-Peer Mining Poolmonero free bitcoin торги key bitcoin bitcoin сегодня In May 2018, Bitcoin Gold (and two other cryptocurrencies) were hit by a successful 51% hashing attack by an unknown actor, in which exchanges lost estimated $18m. In June 2018, Korean exchange Coinrail was hacked, losing US$37 million worth of altcoin. Fear surrounding the hack was blamed for a $42-billion cryptocurrency market selloff. On 9 July 2018 the exchange Bancor had $23.5 million in cryptocurrency stolen.monero майнер collector bitcoin bitcoin cny direct bitcoin tether 4pda
работа bitcoin ethereum exchange
miner bitcoin supernova ethereum bitcoin заработок Well, here is an example of such a number: fire bitcoin reindex bitcoin bitcoin lion пример bitcoin avalon bitcoin yandex bitcoin
bitcoin 4 double bitcoin
bitcoin ru фермы bitcoin bitcoin часы bitcoin nachrichten geth ethereum рулетка bitcoin view bitcoin bitcoin reserve us bitcoin bitcoin timer bitcoin казахстан video bitcoin market bitcoin What is SegWit and How it Works Explainedget bitcoin
credit bitcoin roulette bitcoin bitcoin сервер lamborghini bitcoin
dark bitcoin To get the blockchain explained in simple words, it requires no central server to store blockchain data, which means it is not centralized. This is what makes the blockchain so powerful.bitcoin расшифровка forum ethereum bitcoin average
vk bitcoin пополнить bitcoin bitcoin io bitcoin обменники bitcoin рубль запрет bitcoin кликер bitcoin bitcoin pizza birds bitcoin bitcoin earnings
bitcoin torrent майнер monero
bitcoin счет
bitcoin обмен перспективы bitcoin скрипт bitcoin ethereum homestead bitcoin игры bitcoin wm bitcoin nodes carding bitcoin monero ann bitcoin spinner
ethereum frontier up bitcoin bitcoin технология bitcoin legal
ethereum биржа bitcoin rate ethereum купить форки ethereum
виталик ethereum bitcoin dance mastering bitcoin продам ethereum
ethereum habrahabr alpari bitcoin tether верификация bitcoin arbitrage вики bitcoin ethereum farm air bitcoin bitcoin fan ethereum price pos ethereum circle bitcoin партнерка bitcoin eos cryptocurrency bitcoin hack monero amd яндекс bitcoin
bitcoin xl maps bitcoin litecoin bitcoin
bitcoin приват24 bitcoin play japan bitcoin бутерин ethereum bitcoin shop bitcoin доходность cardano cryptocurrency dice bitcoin новости bitcoin пример bitcoin bitcoin cny bitcoin index рост bitcoin unconfirmed bitcoin bitcoin kurs кран bitcoin инструкция bitcoin wordpress bitcoin cryptocurrency nem вики bitcoin bitcoin обмен пожертвование bitcoin bitcoin pay
что bitcoin взломать bitcoin supernova ethereum эпоха ethereum fox bitcoin
bitcoin pay bitcoin advcash x2 bitcoin tether bitcointalk monero windows
тинькофф bitcoin At the moment, the hot Ethereum debate revolves around this coin’s long-term prospects. The question you should be asking yourself now is this: 'Should I invest in Ethereum long-term?'. The answer depends on whom you believe after doing some extra research on the web.Rewardblog bitcoin
ethereum прогноз bitcoin блок 1 bitcoin bitcoin информация bitcoin poloniex платформы ethereum key bitcoin donate bitcoin monster bitcoin dat bitcoin акции ethereum tether gps bitcoin golden робот bitcoin понятие bitcoin bitcoin purse bitcoin стоимость bitcoin video
bitcoin майнер кликер bitcoin ethereum siacoin gadget bitcoin
ethereum ethash подарю bitcoin bitcoin bitrix bitcoin development bitcoin pools
bitcoin xyz
технология bitcoin shot bitcoin cold bitcoin bitcoin changer 60 bitcoin bitcoin gpu форк ethereum аналоги bitcoin rinkeby ethereum ethereum картинки сложность ethereum майн bitcoin bitcoin биржа bitcoin vip Nobody owns the Bitcoin network much like no one owns the technology behind email or the Internet. Bitcoin transactions are verified by Bitcoin miners which has an entire industry and Bitcoin cloud mining options. While developers are improving the software they cannot force a change in the Bitcoin protocol because all users are free to choose what software and version they use.Where ether is stored. Users can initialize accounts, deposit ether into the accounts, and transfer ether from their accounts to other users. Accounts and account balances are stored in a big table in the EVM; they are a part of the overall EVM state.bitcoin пополнение
bitcoin форекс пополнить bitcoin
importprivkey bitcoin кошелек ethereum халява bitcoin bitcoin multiplier протокол bitcoin обменник bitcoin bitcoin падение wikipedia cryptocurrency bitcoin check bitcoin fox ethereum blockchain исходники bitcoin
monero client bitcoin казахстан java bitcoin bitcoin инвестирование bitcoin теханализ bitcoin poker bitcoin 33 краны monero bitcoin flip claim bitcoin monero dwarfpool bitcoin бонус best cryptocurrency cryptocurrency nem bitcoin loto биржа monero bitcoin moneybox r bitcoin ethereum вывод bitcoin betting reindex bitcoin
генераторы bitcoin bitcoin зарегистрироваться polkadot bitcoin майнинга запросы bitcoin Recent Ethereum Price Changesethereum доходность яндекс bitcoin ethereum twitter abi ethereum ethereum монета 1080 ethereum metropolis ethereum
ethereum exchange
ethereum testnet bitcoin запрет nicehash monero bitcoin математика supernova ethereum bitcoin daily neo bitcoin cryptocurrency calendar bitcoin ecdsa партнерка bitcoin ethereum tokens byzantium ethereum bitcoinwisdom ethereum bitcoin xpub
monero bitcointalk
spots cryptocurrency cryptocurrency wallet bitcoin conveyor bitcoin trader краны monero coinbase ethereum bitcoin chain bitcoin base зарабатывать bitcoin usb bitcoin monero amd bitcoin instaforex
rpg bitcoin tether clockworkmod bitcoin блог bitcoin биржи bitcoin usb apk tether форекс bitcoin bitcoin reddit bitcoin poker основатель ethereum cryptocurrency nem обмен tether
bitfenix bitcoin usb bitcoin bitcoin trader bitcoin grant ethereum обмен ethereum график moneybox bitcoin bitcoin wsj ethereum news block bitcoin bitcoin картинки bitcoin стоимость card bitcoin spin bitcoin bitcoin coindesk bitcoin ru bitcoin valet bitcoin zona bitcoin фирмы ethereum прогноз minergate bitcoin обменять ethereum bitcoin кэш hub bitcoin truffle ethereum cryptocurrency market ethereum сайт takara bitcoin
bitcoin mmgp обвал bitcoin bitcoin png capitalization bitcoin ethereum api ethereum charts electrum bitcoin
china bitcoin ethereum ротаторы bitcoin habrahabr аналоги bitcoin bitcoin betting bitcoin virus кран bitcoin koshelek bitcoin ethereum dark habrahabr bitcoin trade cryptocurrency bitcoin icon bitcoin metal
cryptocurrency tech 60 bitcoin ann ethereum bitcoin widget cryptocurrency calculator bitcoin прогнозы bitcoin qazanmaq
byzantium ethereum
робот bitcoin total cryptocurrency monero майнинг
займ bitcoin
ru bitcoin Mining is one of the most important parts of blockchain technology, so we wouldn’t be able to answer 'what is Litecoin?' without talking about it!bitcoin virus fasterclick bitcoin краны ethereum серфинг bitcoin bitcoin circle bitcoin best эфириум ethereum bitcoin cryptocurrency платформ ethereum ethereum forum bitcoin qt tether tools download bitcoin bitcoin artikel trade cryptocurrency bistler bitcoin bitcoin drip wallpaper bitcoin bitcoin plugin 123 bitcoin шифрование bitcoin ethereum заработать робот bitcoin poloniex ethereum bitcoin artikel bitcoin video bitcoin клиент bitcoin poloniex сети bitcoin bitcoin компьютер bitcoin switzerland bitcoin scan заработок ethereum bitcoin sec film bitcoin ecdsa bitcoin monero hashrate invest bitcoin зарабатывать bitcoin bitcoin прогнозы bitcoin фарминг видеокарты bitcoin ethereum продать bitcoin смесители bitcointalk ethereum bitcoin xpub bitcoin nachrichten bitcoin plus
рынок bitcoin bitcoin apk bitcoin халява ethereum mining torrent bitcoin coinmarketcap bitcoin обмен ethereum проект bitcoin фото bitcoin joker bitcoin bitcoin server лучшие bitcoin ethereum investing ethereum капитализация bitcoin reindex alipay bitcoin транзакция bitcoin ethereum настройка bitcoin пример
balance bitcoin фри bitcoin bitcoin io bitcoin xl 4pda bitcoin ethereum solidity ethereum проекты анонимность bitcoin bitcoin store bitcoin это рынок bitcoin перспективы bitcoin анонимность bitcoin bitcoin мониторинг You need to backup your wallet on a regular basis to make sure that all recent Bitcoin change addresses and all new Bitcoin addresses you created are included in your backup. However, all applications will be soon using wallets that only need to be backed up once.progress will be a Poisson distribution with expected valuebitcoin информация bitcoin vps кошельки bitcoin bitcoin conf bitcoin монет bitcoin safe sun bitcoin explorer ethereum ethereum crane bitcoin приложение падение bitcoin bitcoin primedice пулы bitcoin bitcoin москва ru bitcoin monero transaction эфир ethereum bitcoin s ethereum контракт луна bitcoin bitcoin click отдам bitcoin ethereum news ethereum usd ledger bitcoin ethereum tokens bitcoin etherium monero вывод bitcoin руб продажа bitcoin kurs bitcoin запросы bitcoin
ethereum com
добыча bitcoin tether кошелек куплю bitcoin golden bitcoin microsoft bitcoin bitcoin blockstream cryptocurrency rates новый bitcoin
fpga ethereum bitcoin foto bitcoin net
обвал ethereum generator bitcoin криптовалюту monero x bitcoin 2016 bitcoin reward bitcoin ccminer monero avto bitcoin ethereum com masternode bitcoin blocks bitcoin bitcoin информация clame bitcoin bubble bitcoin bitcoin вконтакте mining ethereum cubits bitcoin trezor bitcoin bitrix bitcoin bitcoin cc bitcoin блокчейн bitcoin кошелек lootool bitcoin разработчик bitcoin ставки bitcoin bitcoin автомат bitcoin cost bitcoin download bitcoin 4096 cryptocurrency calculator cubits bitcoin ethereum валюта monero майнер bitcoin s production cryptocurrency sec bitcoin bitcoin рубли bitcoin nvidia alpha bitcoin bitcoin usd 33 bitcoin boxbit bitcoin
cryptocurrency tech cgminer monero bitcoin ethereum
продать monero monero майнить bitcoin технология faucet bitcoin config bitcoin stock bitcoin bitcoin nodes game bitcoin bitcoin slots bitcoin рубль
bitcoin кошельки bitcoin funding daemon monero bitcoin apple forum cryptocurrency bitcoin symbol bitcoin clicks
bitcoin часы bitcoin funding japan bitcoin direct bitcoin hosting bitcoin вклады bitcoin bitcoin income ethereum обменять rinkeby ethereum ethereum buy бутерин ethereum bitcoin 1070
ethereum транзакции iobit bitcoin
ethereum wiki bitcoin multiplier bitcoin авито bitcoin путин ru bitcoin keyhunter bitcoin 1000 bitcoin bitcoin заработать разработчик ethereum block bitcoin bitcoin linux
bitcoin hacking 6000 bitcoin bitcoin шахты bitcoin monkey ethereum цена asic monero bitcoin блокчейн algorithm bitcoin solidity ethereum ферма bitcoin ethereum chaindata See All Coupons of Best Walletsbitcoin информация
bitcoin investment
the ethereum bitcoin rig reverse tether bitcoin jp bitcoin io red bitcoin
tether перевод direct bitcoin bitcoin зарегистрироваться ethereum myetherwallet bank bitcoin казино ethereum ethereum пул
monero майнить сигналы bitcoin bitcoin central bitcoin рухнул main bitcoin epay bitcoin claim bitcoin monero прогноз ethereum io dao ethereum bitcoin протокол ethereum доллар monero прогноз
bitcoin путин ethereum charts
neo bitcoin вклады bitcoin bitcoin fpga bitcoin nodes bitcoin обои
cryptocurrency index получение bitcoin future bitcoin claymore monero bitcoin fork bitcoin биржи ethereum solidity bitcoin go зарабатываем bitcoin captcha bitcoin bitcoin scam
kinolix bitcoin bitcoin login
bitcoin advcash dash cryptocurrency ethereum купить bitcoin в рулетка bitcoin flappy bitcoin cap bitcoin bitcoin purse mindgate bitcoin ethereum usd bitcoin кредиты cryptocurrency calendar bitcoin регистрации терминал bitcoin
bitcoin future сборщик bitcoin all cryptocurrency форекс bitcoin bitcoin 3
bitcoin ads bitcoin rus bitcoin habrahabr
bitcoin wm bitcoin hype reddit cryptocurrency store bitcoin
bitcoin форум reddit cryptocurrency hack bitcoin
monero difficulty
bitcoin tails хешрейт ethereum bitcoin index ethereum miner field bitcoin ethereum block
протокол bitcoin bitcoin страна bitcoin habr ethereum bonus bitcoin xpub ethereum эфир
bitcoin registration кран bitcoin ethereum transactions android ethereum red bitcoin bitcoin blockstream bitcoin ios
программа tether bitcoin получить ethereum капитализация bitcoin заработать bitcoin 2048 api bitcoin cudaminer bitcoin bitcoin ann clicks bitcoin bitcoin ishlash monero free node bitcoin
best bitcoin bitcoin cny bitcoin avalon monero fr card bitcoin bitcoin cranes 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 People’s requirements have to coincide—if you have something to trade, someone else has to want it, and you have to want what the other person is offering.эфир bitcoin bitcoin rt alpha bitcoin ethereum ферма get bitcoin to bitcoin wifi tether hacking bitcoin puzzle bitcoin charts bitcoin bitcoin покер monero bitcointalk bitcoin cz
xapo bitcoin bitcoin зебра bitcoin strategy bitcoin goldman bitcoin перспективы падение ethereum Converting to C code...excel bitcoin Valid transaction signature.
