Daily Crypto, Finance, and Tech News Summary – August 29, 2023

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Welcome, and thank you for being part of the MyZucoins community! Let’s get into an interesting piece of crypto, finance, or tech news to stay ahead.

Lots of children playing in playground with teachers and guardians watching

Centralized VS Decentralized Digital Networks: Some Key Differences

In our world, two types of digital networks exist. Think of them as two different playgrounds.

The first one, a centralized network, is like a playground with a strict teacher controlling everything. Here, a single server (the teacher) runs everything.

It’s like sites we know, such as Facebook or YouTube, where one company rules all. However, if that server fails, the playground stops working, just like if the teacher leaves, the playground becomes chaotic.

The second playground is a decentralized network, where all the kids have equal power, like a playground without a strict teacher. Here, no single server or command point exists.

It’s more like the internet, where control is shared among all users. But just like in a playground, some kids can become more powerful, like Google and Facebook on the internet. Though the internet is technically decentralized, these big names make it more centralized.

The way these two playgrounds work is also different.

In the centralized network, all the workstations (or kids) send their requests to the central server (or teacher) who manages everything. But in a decentralized network, the tasks are shared among all users, just like kids on a playground sharing their toys and games. If one user fails, the others keep going.

Beyond who’s in charge, other differences exist.

In a centralized network, a third party, like a playground monitor, is needed for communication.

In a decentralized network, all the kids can freely talk to each other.

Centralized networks also have a higher risk of being attacked and brought down, as the teacher in this example can disrupt the entire playground.

But in a decentralized network, the rest keep playing if one kid is compromised.

Every playground has its pros and cons.

A centralized network offers a clear command chain, cost-effective setup, and easy task delegation, just like a playground with a strict teacher.

On the other hand, a decentralized network, like an accessible playground, gives users complete control and resists change and censorship.

However, decentralized networks are more expensive to set up, have unclear decision-making processes in crisis, and are more volatile, just like a playground where kids can sometimes fight over toys. Read more here.

How Splitchain Is Navigating The Network Playground

In the playground of digital networks, the Splitchain network stands as an example of balancing useful aspects from both groups of systems.

Splitchain’s strategy mirrors the peer-to-peer model of decentralized networks, where control is distributed across participants, promoting user freedom and collaboration.

Splitchain also capitalize on the reliability advantages of decentralized networks.

Remember how in the decentralized playground, if one kid is compromised, the rest keep playing?

That’s because in such networks, even if one node is attacked, the others remain unaffected, ensuring the network continues functioning.

So long as users can always find a truthful node with the correct data, verified using a number of mechanisms, the system maintains its reliability.

Splitchain is pioneering a left-field approach by developing a more efficient, scalable decentralized network, on the main system protocol itself, without resorting to often centrally controlled sub-systems, as many traditional cryptocurrencies are focusing on.

By focusing on this approach, Splitchain’s network scalability should be simpler and more transparent to manage for participants of the system.

The world of digital networks is a playground of possibilities. By considering the best elements of both centralized and decentralized networks in their research and development, the Zucoins team have carved out a unique space in the industry.

They are crafting a system that values user freedom and collaboration while maintaining simplicity and resilience to encourage more independence—a key ingredient for decentralization.

And by continuing to innovate, they’re not just playing on the playground, they’re reshaping it.

We also covered a lot more on this topic of decentralization, most recently here and here.

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All the best,
Peter & Rob