Decentralized Network
Decentralized Network
A decentralized network is a type of network architecture where no single entity or central authority has control over the entire network. Instead, the control and decision-making processes are distributed among various nodes or participants. This structure enhances resiLience, reduces points of failure, and can improve privacy and security.
Examples and Cases
- Blockchain Technology: Bitcoin and Ethereum are prominent examples of decentralized networks where transactions are verified by a distributed ledger maintained by multiple nodes.
- Peer-to-Peer (P2P) Networks: File-sharing platforms like BitTorrent allow users to Share files directly with each other without a central server.
- Decentralized Finance (DeFi): Platforms like Uniswap enable financial transactions without intermediaries, using Smart Contracts on Blockchain networks.
- Mesh Networks: Community networks that connect devices directly to each other, such as those used in rural areas for internet access, exemplify decentralized communication.