This article explains in detail what are the characteristics of decentralized networks?

There are currently two types of networks, namely decentralized networks and centralized networks. Today I will introduce to you the decentralized network. Decentralized networks work in a very different way, each node in our network will work as a separate authority and they will have their own decision-making powers.

What are the characteristics of a decentralized network?

Different decentralized networks may adopt different consensus mechanisms, governance models and design principles, so their characteristics and functions may be different. Decentralized networks generally have the following characteristics:

Data is traceable and non-tamperable: Decentralized networks use distributed ledgers (such as blockchain) to store and manage data. Every change to the data is recorded and difficult to tamper with. This provides data traceability and security.

Distributed control: A decentralized network does not have a single central entity or control point, but a network composed of multiple nodes. Each node can participate in the management and decision-making of the network, and no node has absolute control.

Disintermediation: Decentralized networks can eliminate the need for intermediaries or middlemen and directly connect and interact with participants. This reduces transaction costs, increases efficiency, and reduces reliance on trust.

Consensus mechanism: Decentralized networks use consensus mechanisms to achieve consensus and collaboration. The consensus mechanism ensures that all nodes in the network agree on the status and order of data, avoiding the need to rely on a single authority.

Decentralized Applications (DApps): Decentralized networks support the development and deployment of decentralized applications (DApps). These applications can run on the network, interacting directly with users without going through a centralized service provider.

Censorship and failure resistance: Decentralized networks are censorship-resistant and failure-resistant. Since the network has no centralized physical control, it is difficult for governments or other central agencies to censor or intervene in it. In addition, the nodes in the network are redundant, so even if some nodes fail, the network can still operate normally.

Application Scenarios of Decentralized Network

1. Social Media

1) Didi Taxi

The most widely used bus in the world and the current popular APP "Didi Taxi" forms a sharp contrast between "centralization" and "decentralization". Users can personally feel that when taking a bus, they need to go to the bus station closest to the riding point (concentration point), and its route coverage may only reach a certain range from the destination. The emergence of "Didi Taxi" has changed this pattern. Users can find services at any accessible location as a center. The user is a "center" during the time of use, and each vehicle that provides travel services is also a "center".

2) Sina Weibo

We can use Sina Weibo APP anytime and anywhere to send the information we want to convey to others. While transmitting information, we act as a center; while receiving When providing information, others are the center. This is an example of "weakening of the center."

2. Financial services

1)Bitcoin

Bitcoin pioneered the decentralized cryptocurrency, and Bitcoin’s value increased within five years. 300 times. The Bitcoin blockchain is a set of distributed blockchains, from which the Bitcoin symbol is added, and a protocol is stipulated so that it can be safely transferred in the database without third-party participation, thus forming a complete currency transmission system.

2) Ethereum

Ethereum is a digital currency of Ethereum and is considered Bitcoin 2.0. Ethereum is a platform born on the basis of Bitcoin to solve the lack of scalability of Bitcoin. Developers can build applications using various modules on this platform. Developers need to use Ethereum to support the operation of applications.

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