[4.0] Principles of Decentralization

Decentralization is the process of distributing or dispersing functions, powers, people or things away from a central location or authority.

By storing data across its network, the blockchain eliminates the risks that come with data being held centrally. The decentralized blockchain may use ad-hoc message passing and distributed networking.

Its network lacks centralized points of vulnerability that computer crackers can exploit; likewise, it has no central point of failure. Blockchain security methods include the use of public-key cryptography. A public key (a long, random-looking string of numbers) is an address on the blockchain. Value tokens sent across the network are recorded as belonging to that address. A private key is like a password that gives its owner access to their digital assets or otherwise interact with the various capabilities that blockchains now support. Data stored on the blockchain is generally considered incorruptible.

This is where blockchain has its advantage. While centralized data is more controllable, information and data manipulation are common. By decentralizing it, blockchain makes data transparent to everyone involved.

Every node or miner in a decentralized system has a copy of the blockchain. Data quality is maintained by massive database replication and computational trust. No centralized "official" copy exists and no user is "trusted" more than any other. Transactions are broadcast to the network using software. Messages are delivered on a best effort basis. Mining nodes validate transactions, add them to the block they are building, and then broadcast the completed block to other nodes. Blockchains use various time-stamping schemes, such as proof-of-work, to serialize changes. Alternate consensus methods include proof-of-stake and proof-of-burn. Growth of a decentralized blockchain is accompanied by the risk of node centralization because computer resources required to operate bigger data become more expensive.

https://en.wikipedia.org/wiki/Decentralization

The Meaning of Decentralization

Vitalik unpacks decentralization into three types that have separate axes, which is a primary reason why many in the industry talk past each other. He also breaks down the reasons why decentralization are important.

Key insight:
Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure) but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer)

https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274

Three types of Decentralization

When people talk about software decentralization, there are actually three separate axes of centralization/decentralization that they may be talking about. While in some cases it is difficult to see how you can have one without the other, in general they are quite independent of each other. The axes are as follows:

  • Architectural (de)centralization — how many physical computers is a system made up of? How many of those computers can it tolerate breaking down at any single time?
  • Political (de)centralization — how many individuals or organizations ultimately control the computers that the system is made up of?
  • Logical (de)centralization— does the interface and data structures that the system presents and maintains look more like a single monolithic object, or an amorphous swarm? One simple heuristic is: if you cut the system in half, including both providers and users, will both halves continue to fully operate as independent units?

Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure) but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer)

https://medium.com/@VitalikButerin/the-meaning-of-decentralization-a0c92b76a274

Blockchain Building Blocks

Here is each element of computing, with related decentralized building blocks:

  • Storage: token storage, database, file system / blobs
  • Processing: stateful business logic, stateless business logic, high performance compute
  • Communications: connect networks of data, of value, and of state

https://blog.bigchaindb.com/blockchain-infrastructure-landscape-a-first-principles-framing-92cc5549bafe

What's the difference between distributed and decentralized in Bitcoin-land?

In fact, one day there won't be a need for an exchange at all anymore; no other currency on earth will be useful anymore but bitcoin... That's what it was designed for and given time, cannot fail to happen. -"Decentralization" then will look as quaint to us in that day as buggy whips do to us now.

https://www.quora.com/Whats-the-difference-between-distributed-and-decentralized-in-Bitcoin-land

Articles:

Core Principles of Decentralization
https://blog.evercoin.com/core-principles-of-decentralization-3fcba8dafb42

Distributed autonomous organization
http://platformvaluenow.org/signals/distributed-autonomous-organization/

Microservice Principles: Decentralized Governance
https://medium.com/@nathankpeck/microservice-principles-decentralized-governance-4cdbde2ff6ca

Decentralized network
https://www.stellar.org/how-it-works/stellar-basics/explainers/


Request Content:

Name *
Name