What is Decentralization
Why is it key to Digital Assets?
Decentralization occurs when individuals or nodes work collectively in a distributed manner to achieve an objective without reliance on a centralized intermediary.
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In Summary
A quick summary of the topics discussed in this lecture.
Decentralization can have scalability and safety benefits.
A public permissionless blockchain is a digital, decentralized, distributed ledger that doesn’t rely on single centralized authorities or institutions.
Most of the biggest cryptocurrencies use decentralized public blockchains.
Tokens can provide economic incentives, allowing for a potentially better Internet (Web3), where more decentralization is possible.
There are trade-offs that need to be considered, such as the lack of a central governing authority that can be held accountable.
Decentralization can potentially provide three main advantages, depending on size and structure of the network: (a) Fault tolerance, (b) Attack resistance and, (c) Collusion resistance
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