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Cryptocurrency by Princeton[2.1]

Word count: 96Reading time: 1 min
2021/03/31 Share

Lecture 2.1: Centralization vs. decentralization

Decentralization is not all-or-nothing

example: email

Which is a decentralized system.
But what has happended in the last decade or so, is that a dominance of a few web mail providers which are sort of centralized service providers.
This might be a good model for understanding what might be happening to Bitcoin.


Aspects of decentralization in Bitcoin

five questions:

  • Who maintains the ledger?
  • Who has authority over which transactions are valid?
  • Who creates new bitcoins?
  • Who determines how the rules of the system change?
  • How do bitcoins acquire exchange value?
CATALOG
  1. Decentralization is not all-or-nothing
  2. Aspects of decentralization in Bitcoin