What Is the True Meaning of "Decentralization" in Blockchain Technology?

in #blockchain8 years ago (edited)

 Recent years have brought significant misunderstanding of the term decentralization as it pertains to Bitcoin. Literally, it means the dispersal of nodes, data, miners and developers; according to some, the dispersal of miners (everyone mining with a consumer PC) is the original vision of Satoshi, and that vision supports One CPU/One Vote, meaning every single user mines with a home PC and a smartphone. 

 The truth is, everyone-mines-with-PC — the One IP/One Vote ideology — is exactly what Satoshi opposes. If every miner’s PC were to contribute as a full node, all the IP addresses of all of the nodes will be empowered equally. As a result, those who have the power to distribute a large sum of IP addresses, say a botnet, could dominate the Bitcoin network.

 It sounds like a truly fair and decentralized utopia if everyone gets to mine with PCs and smartphones. But why is the stability of a blockchain compromised in this context? Simple, decentralization is not a term describing a status, but a process in aggregate.  

 Nodes are dispersed in a botnet in terms of the status, but they are highly identical in terms of behavioral patterns. In contrast, true decentralization is measured by the degree of freedom allowed for joining in the consensus-making. 

 Another way to understand decentralization is to think of it like an investment portfolio. A portfolio demands the diversification of risks and assets. 

source image: 1

source information: https://bitcoinmagazine.com/articles/guest-post-what-is-the-true-meaning-of-decentralization-in-blockchain-technology-1474558340

 

 This space is created to provide the information of last time