We are going to be focused on Decentralization in Blockchain, by being able to store all your data in the decentralized network in this case upon the Blockchain which is decentralized, it eliminates all the risk of storing data in a centralized network. What that means is that the hackers who may be out to cause harm to lets say your organization don’t have a central point that they can target to exploit.
A decentralized network with many nodes is far more secure, it would take an enormous amount of computing power to even cause harm to such decentralized network. Hence why data is stored upon a decentralized network is generally considered incorruptible.
Let’s say by chance someone managed to hack into the node of a decentralized network and consequently corrupt that node, you wouldn’t have to worry as in our case with the Blockchain every node in the network carries a copy of it, Hence transaction can continue as usual.
Remember if this was a centralized network and a hacker managed to hack into it essentially bring the network to damage. It’s important to know that in a decentralized network let refer to the Blockchain no central copy of the copy exist, each node is as trusted as the other.
Five steps of a decentralized Blockchain in terms of how a transaction is processed
- Transaction Process Begins
- Note that each transaction is digitally signed
- Transaction is sent through Miners
- They ensure that the transaction is actually legitimate
- Transaction is broadcast to other Nodes.
- Transaction is added to the chain
- Recipient receives what you sent
This will all happens very quickly, with the Bitcoin in particular it takes about 10 minutes.
Key Reasons for Decentralization
- Reduced likelihood of Failure
- Not as Prone to Hacking attacks
- Decision making is done as a whole
Read More: Building a Blockchain in PHP