What is the definition of a distributed network in the context of cryptocurrency?

3 answers

• Chami MalalasekaraSep 08, 2024 · a year ago
  A distributed network in the context of cryptocurrency refers to a network of computers or nodes that work together to maintain and validate a decentralized ledger, such as a blockchain. Each node in the network stores a copy of the entire blockchain, ensuring that no single entity has control over the network. This decentralized nature of a distributed network provides several advantages, including increased security, transparency, and resilience to failures or attacks. Transactions on a distributed network are verified by consensus mechanisms, such as proof-of-work or proof-of-stake, which ensure the integrity of the network and prevent double-spending.
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• McCarty McGarryDec 31, 2022 · 3 years ago
  Imagine a distributed network in cryptocurrency like a team of superheroes working together to protect the city. Each superhero has a copy of the city's rulebook, and they all need to agree on any changes made to the rules. This way, no single superhero can make decisions on their own. Similarly, in a distributed network, each node has a copy of the blockchain and participates in the consensus process to validate transactions. This distributed approach ensures that no single entity can manipulate the network, making it more secure and trustworthy.
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• TRUE MichaelsenDec 07, 2022 · 3 years ago
  In the context of cryptocurrency, a distributed network is like a global bookkeeping system that is maintained and updated by a network of computers spread across the world. Each computer, or node, in the network has a copy of the entire ledger, and they work together to validate and record transactions. This decentralized nature of a distributed network eliminates the need for a central authority, such as a bank, to verify transactions. Instead, transactions are verified by consensus, where a majority of nodes agree on the validity of a transaction. This system provides transparency, security, and immutability to cryptocurrency transactions.
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