CryptoURANUS Economics: Decentralized: Defined in CryptoCurrency


Thursday, May 6, 2021

Decentralized: Defined in CryptoCurrency

Decentralized: Defined in CryptoCurrency

Decentralized is defined as a type of system where units are physically spread out, with decisions made from many points, and independence across the network.

Decentralization is actually a combination of 3 parts making up a triangle.

  1. Structure: A system located in multiple places across a space, is a decentralized structure.
  2. Management: A system managed by my many equally powerful units, with no single ruling unit is a decentralized management.
  3. Independence: A system made up of independent units working together for a common purpose is a decentralized independence.

Here are some examples of decentralized systems:

  • The American-English language is a decentralized structure because it is spoken by millions of people across the globe. It is a decentralized management because every person can make up their own mind as to how they speak English. There is independence because you can speak English even if everyone around you speaks a different language.
  • A forest is a decentralized structure because it is made up of thousands and thousands of trees each located some distance from each other. It has a bit of decentralized management because each tree grows in its own way. It has independence because tree can survive on its own despite the fact that they are all surviving as a group.
  • Species of life are decentralized structures because each life form is located in its own space, separate from others. It is a decentralized management because each one manages its own livingness. It has independence because each life form can live on its own without others, to some degree.

Decentralized systems have some advantages including:

  • Resistance to Attack: If several units in the decentralized system are attacked, the system will stay up.
  • Resistance to Problems: If several units in the decentralized system have problems or bugs, the system will remain active.
  • Resistance to Manipulation: If several units in the decentralized system join together with harmful intentions, the system will remain intact and active.

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