Both ‘decentralized’ and ‘distributed’ are the terms that became extensively popular in the cryptocurrency-verse. Blockchain is a decentralized system and also distributed in nature. But that doesn’t make these two terms synonyms to each other. In fact, they are very different in meaning. Let’s see how.
In blockchain terms, ‘distributed’ means a system where all the proceedings are not managed in a single place but by different entities in a distributed manner. For instance, blockchain is a distributed network which means the transaction ledger is distributed among multiple nodes which are responsible for different transaction processing within the system.
A distributed system may be regarded as the branches of a single entity which may or may not be controlled by a centralized entity.
In the simplest terms, a decentralized system is the one where not one single (centralized) entity has all the controls or the power to make all the decision. The controls in such a system are usually distributed among various entities so that it is not centralized with one person. The benefit is that since the control is distributed, not one entity can make a decision for other involved parties.
Take the example of a blockchain system where the right to add, update or delete information is distributed among thousands of nodes in the network, who all have to agree for a transaction to be processed. In short, the power is not centralized with a single entity.
The basic difference between decentralized and distributed systems is that a distributed system doesn’t necessarily have to be decentralized. It may be controlled by a single entity (centralized) or multiple distributed entities (decentralized), but the actual system has to be distributed among multiple places.
For a decentralized system to work, it must be distributed in nature. So, a decentralized system is basically a sub-entity of distributed systems.
Airtoto has launched a completely decentralized blockchain-based lottery system that is backed by the government for licensed lottery games in Asia. Check out the ICO sale which is ongoing on the website with a 20% bonus offer. Please read the whitepaper for complete understanding of the concept.
