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What is decentralization for cryptocurrency platforms?


The main essence of the decentralized blockchain technology is the lack of control over the system of one person or group of people. In decentralization lies the main advantage of the blockchain over the banking or any other financial system that currently exists.

The decentralization itself is ensured by the fact that the participants of the system themselves serve it, without involving intermediary organizations. If the user wants to send the cryptocurrency to another wallet, the transaction must be verified and confirmed by its liquidity from three to six miners. Successful transactions are recorded in a block weighing 1 MB (a chain of such blocks is called a blockchain). Blocks are also interconnected, therefore, any change in at least one of them is possible only by census of all the others.

For each block, the miner pool receives its reward in bitcoins or other crypto money, depending on what was mined. Knowing how a decentralized platform works, you can highlight the main advantages.

Security of decentralized cryptocurrencies
In order for the transaction to be successful, it is necessary to collect the majority of the votes of the system participants, if one node confirms the liquidity and the rest do not, the money will be returned to the sender’s wallet. Due to the connectedness of the blocks, you cannot change one of them unnoticed.

The entire chain of blocks is stored on the machines of each participant in the system, if the device was temporarily offline, data connection immediately starts upon connection, therefore, to change the chain, you will also have to crack 51% of the devices on which the records are stored.

Also, from a security point of view, decentralized cryptocurrencies outperform the dollar and other fiat in that they do not have regulators that, if they wish, can steal funds from any wallet. The only exceptions are some exchanges where trading is conducted, since they are centralized.

Anonymity
In order to operate with a decentralized cryptocurrency, you do not need to go through authorization of the person. Anyone can have a wallet of one of the following types:

Online
Downloadable
Hardware
And after gaining access to it, store your money there, accept and send it, while the identity will not be verified.

Unlimited emission
National currencies have long moved away from the gold standard, so the usual fiat money can be printed in unlimited quantities by decision of the relevant authority. Thanks to decentralized platforms, it is impossible to issue more coins than was originally intended.

Thus, there is no doubt that decentralization is a great advantage of a financial instrument for the user, in terms of anonymity, security and lack of external influence.

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