Decentralized Networks & Blockchain

Let's understand what decentralized networks and blockchain are, how they are different, and how they work together.

What is a Decentralized Network?

A decentralized network is a system where control and information are spread out among many different computers or devices.

✅ No Central Authority: No single person, company, or server is in charge of everything.

✅ Shared Power: Many participants contribute to running the system.

✅ Stronger: If one part breaks, the others can keep the system working.

What is a Blockchain?

A blockchain is a specific type of digital record-keeping technology. It's a list of records (called "blocks") that are securely linked together in a chain.

✅ Digital Ledger: It acts like a public, shared record book for transactions or data.

✅ Immutable: Once a record is added to a block and approved, it cannot be changed or deleted.

✅ Cryptographically Secured: Each block is linked using complex math, making it very secure.

➤ The Difference: System vs. Tool

Decentralized Network: This is the overall design or structure of a system where control is distributed. It's the idea of many computers working together without a central boss.

Blockchain: This is a specific technology or tool that uses the idea of decentralization. It's a particular way to build a very secure and transparent record-keeping system that operates within a decentralized network.

So, a blockchain is often the main technology that makes a decentralized network work, especially for handling important records like money or data.

➤ How They Work Together:

1. The Network Provides the Participants: The decentralized network consists of many computers ("nodes") connected to each other. These nodes are the participants.

2. Blockchain Provides the Rules and Records: The blockchain technology gives these nodes a secure, agreed-upon way to:

• Record new transactions or information.

• Verify these records.

• Keep an identical, unchangeable copy of all records.

Essentially, a decentralized network is the shared system, and the blockchain is the core technology that allows this system to keep trustworthy and permanent records without needing a central authority.