HELLO... STEEM COMMUNITY
As long as I know the world of crypto, cryptocurrency has been known for its decentralized system.
From the Decentralization system, tonight I understand the concept of decentralization which is very beneficial for progress in all aspects.
DECENTRALIZATION
Basically, the idea of cryptocurrency is decentralized as opposed to a centralized system. The centralized system itself is an ecosystem that is controlled by a particular entity, such as the government that has the authority to create, maintain, and delete various rules and policies in the related ecosystem.
In addition to the government, banks (and central banks) can be said to be controlling entities, because they control the monetary system which is the core of our economy. On a smaller scale, a company can be considered a centralized ecosystem, because it has a leader who has the right to make decisions on each of the company's policies and rules.
Well, decentralization refers to the distribution of power and the lack of control of a particular controlling entity. That is believed to be able to control the ecosystem in this case is the general population in the network. Crypto currency and the underlying technology (Blockchain), is an example of a decentralized system, because it can empower all participants to manage and contribute to an open and transparent system.
Decentralized System Features
The founder of Ethereum who is also one of the richest crypto figures in the world, Vitalik Buterin, theorizes that there are 3 main categories in a decentralized system:
▪Political Decentralization: There is no single entity that controls the system.
▪Architectural Decentralization: There is no central point of failure (the whole system stops working or is interrupted just because there is a certain part of the system failing).
▪Logical Decentralization: Behaving like a collective computer, there is no hierarchy.
Of the 3 characteristics above, and therefore has advantages in terms of transparency and security against attacks.
The first decentralized cryptocurrency- Bitcoin, was created to provide a viable alternative to the current centralized monetary system. Bitcoin allows users to transfer money without the need for intermediaries (banks and payment processors), thus providing various benefits which include:
▪Cheaper transfer fees: Bitcoin users only need to pay a small portion of the crypto currency transfer fee, compared to the large fees charged by intermediaries.
▪Fast confirmation time: Users only need to wait a few minutes to transfer crypto currencies anywhere and anytime, without limits globally.
▪Safe: A decentralized system will not suffer damage even if there is one part that is in trouble. In addition, all crypto transactions cannot be changed or manipulated.
▪Transparent: Users can verify and record the details of each transaction on the Blockchain history.
Since its inception, decentralization has been a superior feature in the world of crypto currencies. Therefore, hatred of centralization is very high in the crypto currency community.
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Thanks for visiting and interesting comments
Lhokseumawe, March/20/2020
