Blockchain and Decentralized Governance

Blockchain and Decentralized Governance

Blockchain and Decentralized Governance

Decentralization in Blockchain means the equal distribution of a database among all network members, each of whom has a complete copy of that Blockchain. This database, which contains all financial transactions, user account numbers. And other information is not hosted on a single server. Instead, it is stored on millions of networked computers by synchronization.

In general, we can compare Blockchain to a torrent file download system. In torrent, to receive each file, it is enough to have an active Seed, and the system will operate it. If you do not know what Active Seed is, we mean a computer that already has or has downloaded the file and is connected to a torrent network. How this system works is very similar to the structure of a DeFi Cryptocurrency. A decentralized cryptocurrency network will also be secure as long as computers with a copy of the Blockchain are connected to the Internet.

Of course, a single computer is not enough to authenticate a cryptocurrency transaction. Because only a small number of network members can approve, process, and store transactions in the Blockchain. Decentralization has always been one of the media of Blockchain technology, so Ideaology Project decided to publish a comprehensive and practical article on Blockchain and Decentralized Governance.

What is Blockchain?

According to the title of the article of Blockchain and Decentralized Governance. We must first define Blockchain. Simply put, a Blockchain is a type of information and reporting system. With data encryption and distribution, the possibility of hacking, deleting, and manipulating registered information is virtually eliminated. The concept of Blockchain was first coined with bitcoin. And the king of digital currencies used this strategy to store information about users' assets.

More info about Decentralized Governance

Blockchain and Decentralized Governance means communicating without unique centrality. In the decentralized state, members of the group interact directly with each other to communicate and accomplish a goal; In other words, there is no intermediary or central institution in the middle of the road. Opposite this definition is distribution, where all procedures and processes pass through a centralized gateway and reach the emergence stage. ActiveIdea platform is a perfect example of a Decentralized ecosystem.

Decentralization in the technological field can be defined as shifting from a distributed state to decentralized methods to consume goods and services. Technology changes accompany such changes, and various technologies such as Blockchain will be used for this system. Decentralization in technology creates a peer-to-peer system that connects the requester directly to the server.

Decentralization in the banking and financial institutions

Decentralized banking is a concept that emerged with the advent of digital currencies. This is because digital currencies are the first smart assets that can create such a tool. Many people refer to decentralized platforms as crypto funding. Crypto banks are decentralized platforms that offer standard centralized funding services, such as lending and credit scoring, but all intermediaries.

The people the bank needs to validate lending and financial data structures are being replaced by smart contracts and peer-to-peer services in the digital currency banking ecosystem, formed as a desktop or mobile computer interface. The currencies traded in this ecosystem are mostly digital currencies.

Why is decentralization done in Blockchain?

Perhaps one of the most important points we should address in the article of Blockchain and Decentralized Governance is the answer to the question, why should we use Blockchain to decentralize? The concept of decentralization in Blockchain has been developed with one specific goal in mind: to create an independent payment network whose transactions are carried out quickly and with high security. Like ActiveIdea.com

In a decentralized network, due to the equal distribution of info between "nodes" and frequent copying of root files. There is a possibility of having a resistant and safe system from hacking, blocking, and hacker attacks.

Repeated copying of the Blockchain does not allow fraudsters to access users' assets or change the destination account number during the transaction.

Because a Blockchain is made up of a series of blocks. You, as a node, can manipulate one of these blocks and send some assets to your account, for example. Of course, this will not be possible in reality; every few seconds, many other network nodes check the blocks simultaneously. The system will quickly reject the manipulated versions of the blocks.

Deleting data from Top decentralized job listings platforms is virtually impossible. Even if hundreds of networked computers are confiscated, there will still be large numbers of Blockchain copies on other computers that other computers can instantly download at any time of the day or night.

Doubts about decentralization

In the world of Blockchain , there is no set standard for a decentralized network and there are different perspectives on it. Take a "Decentralized Exchange", for example. Ordinary exchanges act as intermediaries for the optimal execution of transactions. But DEXs are not intermediaries and only create a connection between the seller and the buyer to carry out transactions. This has many benefits:

  • There is no need to deposit assets and each user has full control over his assets.
  • It will be possible to exchange for more people.
  • No need for KYC and the privacy of both parties will be fully protected.
  • It will be possible to exchange more Cryptocurrencies.

A number of decentralized exchanges have all these advantages, but for security reasons. They have been forced to authenticate users and provide a limited list of their assets. This increases the cost of transactions and damages the speed and user experience of exchanges.

To advance the world of Crypto. Different projects must be prepared to accept something between centralized and decentralized. This means that users should not mention "decentralization" as a determining factor in the success of projects. There is no 100% decentralization. To complete new projects or platforms, there must be compromise and a balance between centralized and decentralized.

Disadvantages of decentralization

Most people who read Blockchain and Decentralized Governance want to know more about the disadvantages of this concept. That's why we decided to write a little about the disadvantages of decentralization policy. Decentralized exchanges are more stable than centralized exchanges such as Coinbase, KuCoin, and Poloniex. But we cannot say they are more secure. Centralized exchanges now use decentralized architecture.

Their original code is not publicly available, unlike decentralized exchanges. When the actual exchange code is accessible to the public, a hacker can attack the network by finding a defect in it. You can find the latest news about Scammers and Hackers on Antidolos Media. Besides, the centralized exchanges mentioned above have strong user support and insurance.

Decentralization makes it challenging to make decisions and manage projects. It will usually be challenging to measure each person's participation remotely or control a decentralized team. Ethereum is known as a simple software that runs on a decentralized platform. Of course, it should not be forgotten that despite the decentralized architecture of this software. A person is at the top and plays the project leader's role.

Although this structure has little application for managing a team. Technology has allowed people to work independently. This trend is likely to be continued and even increased by the Blockchain.

Minimum conditions for decentralization in the Blockchain

A business owner can create multiple nodes in different locations and have decentralized networks. However, this network's degree of decentralization will be minimal and requires complete confidence in the nodes. In this case, too, it makes sense to use a Blockchain. Because unlike a typical Blockchain database, it allows you to:

  • Check the correctness of the database regularly.
  • Sync data and backup moment by moment.
  • View all transactions quickly and in one place.
  • Eliminate any weaknesses in the accounting system.

Conclusion

Now, you have info about Blockchain and Decentralized Governance , as well as its pros and cons. In the digital marketplace. Crypto is mostly decentralized assets created to create financial freedom and free the average user from various business organizations' hands.

Today, however, we see cryptocurrencies with a centralized structure. "IDEA" and "XRP" are clear examples of this. Investing in such tokens can be very lucrative. But at the same time, it's not very reliable. For this reason, many independent users recommend buying cryptocurrencies that use decentralized Blockchain. The reason is simple; it could revolutionize the current financial system