A decentralized network is a network where the workload is distributed across multiple machines instead of a central server.
A well-known decentralized network is the Bitcoin blockchain; it is possible to carry out transactions on this blockchain without a central party.
A decentralized network offers several advantages compared to a central network. A decentralized network cannot simply fail. A central network is vulnerable because there is only one point where all the information passes. Although this central server is well protected, in the event of a successful attack, the entire network is at risk.
In a decentralized network, a successful attack is only successful if more than half of the computing power has been attacked. This is also known as a 51% attack. Another advantage has to do with scaling a network. As a network grows, only separate computers need to be added. These computers can be located anywhere in the world. With a central network, there must be a whole new building.
Privacy
Privacy is one of the key points of a decentralized network. With a decentralized network, the guarantee of privacy is much higher than with a central network. Information does not travel through one central point but passes through several points before it reaches the end station.
This makes information much more difficult to track in a network.
Major tech companies such as Google and Facebook are regularly in the news with privacy scandals. Companies regularly have to pay fines of many hundreds of millions because, for example, they use personal data to increase their advertising income. The companies are not transparent enough with customers. The information on a decentralized network is accessible to everyone and, due to its decentralized nature, there is often not enough information to create an extensive data profile for an individual.
