Buzzwords: Centralized and Decentralized
The blockchain and other technologies inspired by it are creating opportunities for investors, developers, and businesses alike, but a common occurrence in the space is the mention of particular buzzwords, such as “decentralization” or “trust-less” and so on. They sound good, but are they really understood?
We have Bitcoin as our primary example of a decentralized system and unconfiscatable asset that is independent from a singular authority, CEO, or central point of failure. No other blockchain has managed to replicate this type of ecosystem.
By running the Bitcoin system and the network while achieving consensus, the technology allows a user to be one small point on an otherwise larger network consisting of potentially thousands of points, otherwise known as nodes.
An open-source blockchain such as Bitcoin allows anyone to participate, but what if the blockchain is only allowed to be used by a select few?
In the future, businesses may run private blockchains, with only a select few being able to develop and contribute to the code, or even use the system itself, similar to how a bank has to approve your application before you are entitled to its services.
Other protocols (such as EOS, DASH, and NEM) use a voting system to make decisions on critical areas, such as network progress or who produces the blocks on the network.
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