Centralized Systems versus Decentralized Systems
Can decentralization be the answer for the Internet's centralized mess? A network that isn't managed by a central party but instead, peer-to-peer interaction with no third party which is a network of nodes. Nodes are a copy of the Blockchain which exist on a computer or any hardware device. A very good sample of P2P (Peer to Peer, computers acting as a network) is Pirate Bay. The Blockchain where the community has access to, is a series of numbers (digitized) where users buy and sell (decentralized) and keep records (public ledger).
Centralized systems are currency which can be exchanged electronically using debit cards and credit cards using electronic funds transfer at a place at which a retail transaction is carried out. It is also called Fiat Currency. A fiat currency is used to describe any physical paper currency. The definition of a source: "the concentration of control of an activity or organization under a single authority like a bank or government."
When it is centralized, there's a single point that does all the work. Centralized platforms make use of a central hub, it requires all data to enter and leave through. It is easy to track information like Google and Facebook.
Decentralized transactions are cryptocurrency (no middleman needed) and is a type of digital asset that relies on cryptography for chaining together digital signatures of asset transfers. It allows more privacy because information goes through a variety of points, which makes it difficult to track information on the network. In some cases, a proof-of-work or proof-of-stake scheme is used to create and manage the currency. This is called mining or forging. It is the process of recording and entering transaction records by the public in the Blockchain.
Cryptocurrencies allow electronic money systems to be decentralized. The first and most popular being, a peer-to-peer electronic financial system, based on cryptography, called Bitcoin.
The definition of a source: "the movement of departments of a large organization away from a single administrative centre to other locations." When it is decentralized, there are multiple points that do the work. Decentralized platforms do not require information to pass through a single point, instead of many points connected to this peer-to-peer network. Authenticity can be verified by the entire community using the Blockchain.
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