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B-BT

Question: how is Defi considered decentralized when the funds are

still centralized in the protocol?

#blockchain #cryptocurrency #defichain #english
0

2 ответов

7 просмотров
Pho-

Which funds?

0
02.03.2022
DcShel-Shelton

You have a misconception of crypto. They are all Blockchain digital ledgers of transactions. No one technically holds their own coins. All a person or entity has are the "rights of access" to certain coin per the ledger. If your have .5 Bitcoin in your "wallet", then that means you control .5 Bitcoin as it's rightful owner and your wallet has the keys to access that amount of coin. No one has their coin actually in their possession, just the keys to access it. Secondly what makes a coin decentalized or not is not that it's all on a "single central" Blockchain, because that is the case for every cryptocurrency, but what defines it as decentralized or not is who controls the Blockchain. Blockchain code is software running on a series of computers called nodes. The nodes control the Blockchain. If it all runs on let's say one node computer (like one server) then it's centralized. It's the Blockchain is run by a consensus of nodes and more than half of those are controlled by one person or entity then it's centralized. But if more than half of the nodes are dispersed among many people and entities then the Blockchain is not controlled by a central entity and is decentalized. So like with Bitcoin no one controls more than half (nodes on that type of Blockchain are also called miners). Then you can have centralized and decentralized services that either use rh Blockchain or are part of the Blockchain. Such as Cake Defi which is a centralized service using Defichain or the Decentralized Exchange you find in rh Defichain wallets.

0
03.03.2022

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