Digital currency – decentralised systems explained

Digital currency – decentralised systems explained

In a decentralised system there’s not a group of people responsible for the state of the whole system. If you made a mistake in a transaction, you can’t make a request to the company and rely on the successful outcome. 

Cryptocurrencies are decentralised, and the regulations are made by the majority of the community. Therefore it means that if no supervisory authority controls all the actions in the network. This comes at the expanse of all the users. 

If the system is revocable, you can make changes to a transaction. At the same time, it opens room for fraudulent activities. Although with digital currency in a decentralised system using cryptocurrency and Blockchain, you can enjoy all the benefits of transparency, security and no permission of any third party. 

With a decentralised system it doesn’t rely on a third party service to hold the customer’s funds. Instead, trades occur directly between users (peer to peer) through an automated process. By definition, Decentralisation is, “the movement of departments of a large organisation away from a single administrative centre to other locations.” 

Decentralised platforms don’t require information to pass through a single point. Instead, many points connect, known as a peer-to-peer (P2P) network. Decentralised platforms, on the other hand, allow for far more privacy. Because information doesn’t have to go through one point and can instead pass through a variety of points. And it’s much more difficult to track information across the network. 

So, if you’re looking to protect your identity or online information using a decentralised system is ideal. 


Categories: Currencies