~ LUCKY'S CRYPTO GUIDE FOR BEGINNERS ~ PART TWO ~ WHAT DOES DECENTRALIZED MEAN?

in cryptocurrency •  2 years ago 

LUCKY'S CRYPTO GUIDE FOR BEGINNERS


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PART TWO

WHAT DOES DECENTRALIZED MEAN?


Lucky here with Part Two to my crypto guide that is breaking down cryptocurrency for the beginner. This article is based on one of the key terms that define the blockchain and cryptocurrency, DECENTRALIZED. This word itself, is what makes crypto what it is and is what made the blockchain successful, so understanding what it means, is very important. This is a brief breakdown for a beginner, and I will get significantly more in depth with the different forms of decentralization in a later article.


SO, WHAT DOES DECENTRALIZED MEAN?


For starts, "decentralized" means that it is not controlled by any one person or organization, more specifically a government. For example, the US government controls the US Dollar, making USD a centralized currency. Bitcoin, is a anonymous and uncontrolled digital currency, regulated and internally controlled by nothing except the value the market drives it to. No world government can regulate or control the value and use of the blockchain, ultimately meaning the currencies created from blockchain technology, cannot be manipulated by world government. This exact lack of control has spiked fear among countries such as China or the good ole US of A, who famously control just about every aspect of a citizen's life, whether they realize it or not.

To simplify even more, a blockchain is politically decentralized (unable to be controlled by anyone such as government or groups), architecturally decentralized ( no one server or system controls the blockchain meaning no chance of system shutdown from a main server failure) and a blockchain is logically centralized (meaning there is one common goal which the entire network works endlessly to achieve). These are all tremendous benefits to the future in economics, business, technology and currency itself.

Decentralization has made it so your hard earned money, stays YOUR hard earned money. With the privacy and anonymity the blockchain provides, partnered with full decentralization, you can make investments and "nest eggs" that if done right, will not simply vanish like a fart in the wind. You can protect your assets, hide your assets and more importantly, sleep better at night, thanks to blockchain technology and everything built upon it.


Thanks for reading Part Two of Lucky's Crypto Guide For Beginners. I hope that this brief article gave you as a beginner, some insight into one of the most important terms in crypto today. If you liked my article, please feel free to upvote, resteem and follow me @terminallyill. Part Three will break down what a P2P Network is, to help one fully understand blockchain technology which was explained in part one of my guide.


You can read part one of my crypto guide here


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