Decentralized System: - Deepstash

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A Simple Explanation

A Simple Explanation

Imagine a group of friends trying to manage a shared expense list

Type #1

Type #2

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Type #1.Centralized System

Type #1.Centralized System

Traditionally, one friend (the "central authority") would keep track of all the expenses. Everyone trusts this friend to maintain accurate records. But, what if that friend loses the list, or makes a mistake? The whole group is affected.

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Type #2.Decentralized System

Type #2.Decentralized System

In a decentralized system, every friend has a copy of the expense list. When someone adds an expense, they share it with everyone. Each friend verifies the new expense and adds it to their copy.

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Key points

Key points

No single point of failure:** If one friend's copy is lost or corrupted, the others can still access the correct information.

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Transparency

Transparency

Everyone can see the entire expense list, ensuring fairness and accountability.

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Security

Security

Changing the list is difficult because everyone must agree on the changes.

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Blockchain To

Blockchain To

It uses cryptography to secure the data and ensure trust among participants.

In essence, a decentralized system is like a shared digital ledger where everyone has a copy and can verify the information

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