Why is a blockchain ledger considered a decentralized and distributed system?

3 answers

• Feb 17, 2022 · 3 years ago
  A blockchain ledger is considered decentralized and distributed because it is not controlled by a single entity or authority. Instead, it is maintained by a network of computers, known as nodes, that work together to validate and record transactions. This decentralized nature ensures that no single point of failure exists, making it more secure and resistant to censorship or manipulation. In contrast, a centralized system relies on a central authority to manage and control the ledger, which can be vulnerable to hacking, corruption, or censorship.
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• Feb 17, 2022 · 3 years ago
  Think of a blockchain ledger as a digital democracy. Instead of having a king or queen who makes all the decisions, power is distributed among the people. Each node in the network has a copy of the ledger and participates in the consensus process to validate transactions. This decentralized and distributed approach ensures that no single entity can monopolize control over the ledger, promoting transparency and trust in the system.
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• Feb 17, 2022 · 3 years ago
  At BYDFi, we believe that the decentralized and distributed nature of blockchain ledgers is what sets them apart from traditional centralized systems. Unlike centralized exchanges, where users have to trust a single entity with their funds, decentralized exchanges built on blockchain technology allow users to retain control of their assets throughout the trading process. This eliminates the need for intermediaries and reduces the risk of hacks or theft. With blockchain, the power is in the hands of the users, not the exchange.
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