Decentralized network

A decentralized network is one 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 conduct transactions on this blockchain without a central party.

Benefits of a decentralized network

A decentralized network offers several advantages over a centralized network. A decentralized network cannot simply fail. A centralized network is vulnerable because there is only one point through which all the information passes. While this central server is well protected, in the event of a successful attack, the entire network is at risk.

In a decentralized network, for an attack to be successful, more than half of the computing power must have been attacked. This is also known as a 51% attack. Another advantage has to do with scaling a network. As a network grows, only individual computers need to be added. These computers can be located anywhere in the world. A central network requires a whole new building.


Privacy is one of the most important issues with a decentralized network. With a decentralized network, the assurance of privacy is a lot higher than with a centralized network. Information does not take a path through one central point but passes through several points before it reaches the final station.
This makes information much harder to track in a network.

Importance of a decentralized network

Big tech companies like Google and Facebook are regularly in the news with privacy scandals. The companies regularly have to pay fines of many hundreds of millions because, for example, they use personal data to increase their advertising revenue. The companies are not transparent enough with customers. The information on a decentralized network is accessible to anyone, and because of its decentralized nature, there is often not enough information to create a comprehensive data profile of an individual.