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What is Decentralization? Definition, Working, Need, Benefits

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Decentralization is known as the distribution of functions among several units. It is an interconnected system where no single entity has complete authority. It is the architecture in which the workloads, both hardware, and software, are distributed among several workstations.

The functions are distributed among several machines in a decentralized system instead of relying on a single server. They have multiple central owners. The owners can store the resources so that each user can have access. The system can be imagined in a graphical manner. Each user’s machine can be visualized as nodes that are connected to one another. Each node has a copy of another node’s data and the multiple owners have copies of all the nodes as well so as to reduce the access time. So whenever an update or change is made in a node’s data, the changes are reflected in the copies as well. Let us illustrate with the help of examples: Bitcoin is the latest technology and a prime example of a decentralized system. It is a blockchain where no central authority exists. Anyone and everyone can become a part of the network get involved in transactions and take part in voting. The decision is taken on the majority of votes. Dogecoin is a cryptocurrency that is decentralized and peer-to-peer that allows us to do transactions. 

We must have a clear concept of decentralization, centralization, and distributed networks. In a centralized network, there is a central network authority who takes the decisions. In a decentralized system, there are multiple owners. Distributed systems are a further extension of decentralization. Here there is no concept of owners. All users are owners and all have equal rights.

Importance of Decentralization

Decentralization is very important because of the following reasons:

  • Optimization of Resources: Each user does not have to have all resources. The decentralized setup allows the user to share his burden with others at a lower level.
  • Greater output: Since all users have the same authority, therefore each and every user work with greater efficiency so as to enhance the maximum productivity.
  • Flexibility: Users can share their own views as there are no restrictions imposed by any central authority. They also have the flexibility to change their decisions. 

Working of Decentralization 

In a decentralized network, a user wants to share some data. The user doesn’t have to take permission so has the full authority to publish something. In the network, each user is connected to one another. So when the user shares the data, the data is shared among the other peers with the help of protocols. Peers approve the data. When the data is approved the protocols update the database. A database is maintained so as to keep track of all information.

Need of Decentralization

Nowadays, technology is advancing day by day and the number of users is also increasing. For the administration of the system, the centralized system is failing to meet all the criteria. So Decentralized system is becoming very useful day by day. It creates an efficient, secured, and reliable administration. It improves peer-to-peer networks. It ensures the right of each user. Each individual has the right to decision-making. Users also have access to the database. The biggest advantage of decentralization is if a part of the network crashes, the whole network will work uninterrupted. The main reason why decentralization is better than centralization is the flexibility and data to adapt to market demands quickly.

Is Decentralization secured?

Decentralization is highly secured. Since there is no central authority, there is no central server. Each user’s server act as a central server. Therefore there are multiple servers. Hacking all the servers is not a feasible option. Therefore many organizations are now switching to a decentralized network. The prime example is Google. The products of Google from online search to mobile Android are given the freedom to work independently.

Benefits of Decentralization

  • The main benefit is if some nodes fail or the main node fails, the whole system doesn’t crash.
  • The decision-making process is done on the basis of voting. 
  • They are usually open development platforms and there is less censorship. 
  • More machines can be added to the network. 

Sample Questions

Question 1: Write some Advantages of Decentralization.

Solution:

The advantages of Decentralization are:

  • No central authority : There is no involvement of central authority. Each user has the power to make their own decisions.
  • Greater Expansion :  More and more computers can be added to the network without any worry.
  • Expression: Users can express their ideas or share data freely as there is less censorship.

Question 2: Is World Wide Web Decentralized. Explain

Solution:

WWW is highly decentralized in nature. Millions of users are connected to one another and no user has complete authority over it. 

Question 3: Is decentralization secured?

Solution:

Decentralization is highly secured. The hackers will have a tough time to hack multiple servers. In centralized system, there was involvement of one server so it was easy to hack. But in decentralized system, it is not so. Decentralized networks enable to sharing of information privately and securely.

Question 4: What is the problem with the Decentralized system?

Solution:

The biggest problem of Decentralized system is there is no consistency. Some unauthentic users try to share some harmful data which might result in any fatal data loss.

Question 5: Is Decentralization the future?

Solution:

Yes, decentralization is the future of computer networks as there is no central authority. Each user has the same right  Also the security is highly enhanced in this network. So decentralization is the future. 


Last Updated : 01 Jun, 2022
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