Understanding the Decentralized Nature of Cryptocurrencies

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Cryptocurrencies,Decentralized,Nodes

This article explains how cryptocurrencies operate in a decentralized manner, with nodes in a global computer network controlling transactions. It also discusses the consensus mechanisms used to ensure agreement among nodes.

Let’s remember, first, that don’t work at all like older financial systems. While the latter ones have companies, organizations, and governments in full control of every transaction, decentralized coins give up that control to their community, in the form of a global computer network. Each computer or piece of hardware running the right software and connected to its peers is considered a node of that specific network.

They work to check balances, send and receive transactions, and a few more things, depending on the network and the wallet app. However, you’ll need to run a full node if you want complete independence, complete confidence in the integrity of all transactions, quick access to all data on the ledger, or access to specific data or functions that only full nodes can provide.

 

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