Digital currency – centralised systems explained

Digital currency – centralised systems explained

When digital currencies are centralised this means there’s a group of people and computers that regulates the state of the transactions in the network. If you made a mistake in a transaction, you can make a request to the company and rely on the successful outcome. 

On the other hand, centralised networks keep a lot of confidential information about their users. This data may get lost, hacked or be transferred to law enforcement agencies at court request. With digital currency in a centralised system it’s more regulation base. 

By definition, centralisation is “the concentration of control of an activity or organisation under a single authority.” Centralised platforms require all data to pass through a singular point. That’s to say, you physically can’t send or receive any information without it going through that single point, which is often a server or hub.  

Since centralised platforms require all data to go through one place, it’s very easy to track information. And all information or actions taken on a centralised network are constantly being monitored, by people like the government. With a centralised system they’ll spy on you and control you as much as any traditional financial institution. 

Money moves only with the permission of those in control. The world’s monetary system, based upon national fiat currencies created and managed by government-sponsored central banks.  

The entities with the power over money’s creation, regulation, and transfer have the will and the power to hurt you if you disobey. Not only that, but you’re coerced into it in the first place, being forced to pay taxes and settle debts using only your government’s anointed digital currency. 


Categories: Currencies