What is an open, decentralized or synchronized blockchain?



  • There are certain terms that are commonly used in association with anything related to Blockchain but what do they actually mean?

    Commonly, the following three terms are used:

    • Open

    • Decentralized

    • Synchronized

    • Open : It means that anyone can download a copy of the blockchain. It is an open server system. Every new copy is known as a Node, which is used to verify the authenticity of the blockchain.

    • Decentralized : It means that blockchain is a pure P2P system with no central server for maintenance. All decision related to the blockchain (like adding new nodes) are made by the existing nodes, usually requiring a majority of the nodes to agree. Also everyone who is participating in a blockchain has a copy of all records.

    • Synchronized : It means that any changes to the records are propagated to all the nodes in the blockchain. A node ‘agrees’ to the change by modifying their local copy of records and once the change has been adopted, all nodes will update their local copy to the agreed copy.

    Out of the three mentioned above, decentralized is the key when it comes to crypto-investing because it brings to the table qualities of being ‘permissionless’ and ‘censorship-resistant’.
    Read more about it here.

    Please note that the information is meant purely for informational purposes and should not be relied upon as financial advice. Users may wish to approach a financial adviser before relying on any advice provided by the website to make any decision to buy, sell or hold any investment product.


 

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